Breaking a lease
If a tenant terminates a fixed-term agreement before its end date, they are essentially breaking the lease, as the tenancy agreement is legally binding and can only be terminated under specific circumstances. In the event of a lease breach by either party, compensation may be required.
Compensation, in the form of financial reparation, may be owed due to breaking the lease. Examples include the tenant covering the loss of rent until the property is re-let or until the original tenancy agreement concludes, and covering reasonable re-letting and advertising costs. If the property manager/owner breaks the lease, they may be responsible for covering the tenant's moving costs.
The tenant and property manager/owner should discuss compensation terms and payment options, including the disbursement of the bond. Furthermore, the property manager/owner must take steps to mitigate any losses associated with breaking the lease.
If a tenant terminates a fixed-term agreement before its end date, they are essentially breaking the lease, as the tenancy agreement is legally binding and can only be terminated under specific circumstances. In the event of a lease breach by either party, compensation may be required.
Compensation, in the form of financial reparation, may be owed due to breaking the lease. Examples include the tenant covering the loss of rent until the property is re-let or until the original tenancy agreement concludes, and covering reasonable re-letting and advertising costs. If the property manager/owner breaks the lease, they may be responsible for covering the tenant's moving costs.
The tenant and property manager/owner should discuss compensation terms and payment options, including the disbursement of the bond. Furthermore, the property manager/owner must take steps to mitigate any losses associated with breaking the lease.
Here are the steps in breaking a lease:
1. Submit a notice to leave using the provided link for the Notice of Intention to Leave Online Form. 2. Re-letting costs will apply, totaling {Tenant Rent Amount} + GST, equivalent to one week's rent period + GST. 3. We will determine the market rent through a Comparative Market Analysis (CMA). The new rent amount could be the same or increased. Please confirm the rent amount before finding a replacement tenant. 4. Finding a replacement tenant is required for either a new 6-month or 12-month tenancy, depending on the time left on your lease. The application is subject to owner/property manager approval. No advertising costs will be incurred if you secure your replacement.
5. If needed, we can assist in advertising the property online. You are responsible for online advertising costs, typically ranging from $170-$220 + GST. 6. Compensation for loss rent is required until a replacement is found or the lease ends, whichever comes first. Rent payments are your responsibility until a replacement is secured. 7. A move-out checklist for bond clean, utilities charge if applicable will be provided. The property should be professionally cleaned and returned in the same condition as received. 8. The bond will be processed once all matters are cleared.
Our agency will handle the break lease application, generate a new tenancy agreement, and initiate the bond process. We will adjust the end date as soon as a replacement is secured to finalize the outstanding rent amount.