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Normal text size Larger text size Very large text sizeTerminating a fixed-term lease can be a costly decision but, whatever your reasons for doing so, experts say the No.1 rule is to give plenty of notice of your intention to vacate.
The first step is to put in writing your plans to break your lease as soon as possible to help minimise disruption between the old and new tenant, according to Stone Real Estate ACT property management director Amanda Tehle.
“Gone are the days when you had to try to find someone to take your place,” she said. “It’s still important for agents out there to try to find the best possible tenant for their owners, too. That’s what we are here for.”
In almost every Australian state other than NSW, the typical penalty for tenants breaking a lease is to reimburse their landlord for any expenses incurred as a result of the break lease, including any loss of rent, Raine and Horne property management national manager Maria Milillo said.
“It’s pretty much that way in every state apart from NSW,” she said. “They’re the only state where the determination of the amount of money you pay is fixed. So if you have, for example, 75 per cent of your lease still pending then you must pay four weeks rent.”
However, Ms Milillo said her advice would always be that a tenant checks their lease agreement, as well as the governing body websites for information, because the length and terms of leases in some states could vary.
Readvertising the property for rent is a common cost for tenants choosing to vacate early, as well as a letting fee, which could be between one to two weeks’ rent.
“For anyone facing financial hardship, they should make sure they’ve researched and are completely aware of all the support that’s available first before they go down this road because it could be quite costly,” Ms Milillo said.
“Depending on the financial position of the landlord, some are able to be fairly generous and really support tenants but not every landlord is in that position, as they too could be affected financially. So, that’s why communication is really key.”
