Ending a tenancy agreement early, or ‘breaking lease’ can be stressful, but renters should find it easier in the current tight rental market given it probably won’t take long to find new tenants.
While there are potential costs involved with breaking lease, you cannot be asked to pay the usual end of tenancy expenses such as the final inspection fee that an agent may charge and the landlord cannot impose other additional fees.
Landlords are also not entitled to be compensated for losses that could have been avoided, such as lost rent via a delay in reletting the property because they decide to undertake some renovations. They must do everything reasonable to find a new tenant as quickly as possible and keep their losses to a minimum.
Additionally, your bond should be returned to you as normal, minus any costs for repairs, and you will need to leave the property clean and tidy.
It’s best to notify your landlord in writing as soon as possible that you intend to break lease. This will help reduce any costs you may have to pay.
But what costs will you be liable for? You must continue paying rent until your lease officially ends (even if you’ve moved out), or until a replacement tenant is able to move in, whichever happens first.
If you can, give a specific moving out date as this can make it easier to secure a new tenant. You are entitled to stay in the property as long as you’re paying rent as per your tenancy agreement.
Besides the lost rent, you may be asked to cover other costs as a result of you breaking lease, for example the cost of advertising the property. However, the landlord must do what they can to reduce these costs, including advertising the property quickly.
There are circumstances where you can end a tenancy agreement early without breaking lease or incurring costs, such as if the property is destroyed in a natural disaster or circumstances of family violence. Check the Consumer Protection website for the specific conditions that need to be met in these cases.
What about if your landlord wants to break lease? You don’t have to agree with the request to break lease but if you do agree, you can ask the landlord to cover some costs of having to move house unexpectedly. Landlords can also apply to the Magistrates Court for an order to end the tenancy.
Consumer Protection wants landlords to appreciate that tenants breaking lease can be experiencing a lot of stress, which can include a need to relocate at short notice for work or a change in financial circumstances. In a tight rental market, landlords are unlikely to experience much of a loss of income and it’s always best to address these situations amicably.
If the situation cannot be resolved, Consumer Protection may be able to help – go to or call 1300 30 40 54.
