Your General Tenancy Agreement is a legally binding financial agreement so it’s important to understand, there are penalties and cost 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 you ending your agreement early.
The costs an owner could incur are as follows:
Advertising Fee – Currently charged at $250 + GST
This covers the owners’ costs of having an advertisement prepare and the cost of listing the property in various advertising portals so we can find a new tenant.
Letting Fee – Currently Charged at 1.5 Weeks Rent + GST
This covers the cost of a property manager responding to and coordinating potential tenant enquiries, attending potential tenant inspections, following up interested potential tenants, processing applications from potential tenants and signing up a new tenant and conducting their tenancy induction.
Rent – This is calculated at whatever rent you’re currently paying
When you end an agreement early, there is a downtime from when you leave to when a new tenant moves in. It is a reasonable request from an owner that you cover the rent until a new tenant is found to move in.
Why Pay These Fees?
It may seem expensive, however, you’re terminating a financially binding agreement so just like ending a mobile phone contract early, it’s a reasonable expectation that there are penalty charges, however, 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 & Handing Back the Property
You’re still required to submit a Form 13 – Notice of Intention to Leave and specify a date that you will be handing back the property. We must have this from you in order to be able to advertise for a new tenant. Simply because potential tenants need to know when they can start a lease so they know whether the timeframe is suitable for them. Without this, we cannot move any further with finding a new tenant for you.
You are also still required to undertake all the necessary cleaning and repairs that you’re normally would when vacating a rental property.
For more information about what your requirements are, go to our ‘When You Vacate’ Page. (please hyperlink to this page).
Defence 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.