Ending your tenancy early
Breaking the lease
Your General Tenancy Agreement is a legally binding financial agreement. It is important to understand, there are penalties and costs involved when you end your agreement early. Ending your agreement early is most commonly known as ‘breaking the lease’.
What are the potential costs?
Essentially, you’re required to provide reasonable compensation to the owner for the loss they will incur by breaking the lease.
The costs an owner could incur are as follows:
Advertising fee – currently charged at $250 plus GST
This covers the owners’ costs of having an advertisement prepared and the cost of listing the property in various advertising portals. This is how we find a new tenant.
Letting fee – currently changed at 1.5 weeks rent plus GST
This covers the cost of a property manager doing the followong work;
- Responding to and coordinating potential tenant enquiries
- Attending potential tenant inspections
- Following up interested potential tenants
- Processing applications from potential tenants
- Conducting a tenancy induction once a suitable tenant is found
Rent – this is calculated at whatever rent you’re currently paying
Why do I have to pay these fees?
It may seem expensive, however, you’re terminating a financially binding agreement. It’s just like ending a mobile phone contract early. It’s a reasonable expectation that there are penalty charges. The upside is that paying for things like advertising and letting fees will actually reduce the amount of time you have to continue paying rent.
These fees pay for our expert property managers to find a new tenant for the property as soon as possible!
Giving notice and handing back the property
You are also still required to undertake all the necessary cleaning and repairs that you normally would when vacating a rental property.
For more information about what your requirements are, go to our ‘When you vacate’’ Page.
Defense posting or deployment
If you’re a defence member and you are leaving early because you’re being posted or deployed for service reasons, you are protected by a defence release clause.
Please keep in mind, you must still submit a Form 13 – Notice of Intention to Leave and provide at least 30 days’ notice of your intended vacate date.
You must also provide a formal notice issued by defence to prove that you’re being moved for service reasons. In some cases, we may even have to get in contact with your superior to confirm the posting or deployment.