You have all the best intentions when getting into a lease agreement as it is a legally binding agreement. But something can happen down the line to make you reconsider. So, if you’re not asking your landlord to renew the lease, it’s only natural that you want to know how to break a lease in NSW or anywhere else in Australia.
So, how do you terminate a lease early without penalty? Would a lease transfer be involved? Normally, landlords and property managers have more sway when it comes to such agreements, and tenants generally do not go looking for trouble.
Whatever your reasons, it is possible to lease break earlier, but it will cost you. This article shows you how to break a lease in the least costly and smoothest way possible. So, read on for renter tips and guides.
Can I break a lease agreement early?
We’re glad you asked, because as a tenant, you should be aware aware of renter rights.
Yes, you can, but you need to take certain precautions. Otherwise, it will be stressful and costly. Ideally, you need to find out early enough when you intend to terminate the lease. Giving out a notice can give as much notice to your landlord or property manager.
Additionally, early knowledge helps you organise yourself and plan for the move accordingly.
What costs come with breaking the lease early?
Your landlord will push certain costs on you, seeing as you have destabilised them with your announcement. For example, they may charge you reasonable advertising costs as they must look for new or prospective tenants to occupy the space you are about to vacate.
Additionally, you may have to compensate for lost rent between vacating and a new tenant coming on board. Furthermore, you may have to pay any re-letting costs the landlord will incur.
Therefore, the earlier you inform the landlord of your intentions, the faster a new tenant will occupy the premises you are vacating. This will help save you those costs and use them for other purposes such as the letting fee on your next rental.
Fixed-term tenancy agreement
On a fixed-term agreement, a tenant breaking a lease will incur the mentioned costs, as opposed to a person on a rolling or periodic lease. In fixed-term agreements, tenants are legally bound to pay rent for a specified minimum period.
Therefore, breaking a fixed-term lease early gives the landlord all the legal backing they need to impose the costs involved. Quickly determine if you need to break the tenancy agreement early, inform the landlord as early as possible, and cooperate with their efforts to get a new tenant in. You may still need to pay a few weeks’ rent to cover the costs.
Are there ways to avoid the costs?
Yes, you can avoid paying some of those fines and other penalties, if you establish legal reasons for breaking the lease.
Every state and territory has different interpretations and allowances for these reasons. But they should help you argue your case and get the costs removed or minimised.
Hardship
If prolonging the lease would cause you financial hardship, you have a legal right to terminate it. You only need to apply to your state or territory’s tribunal to have the rental lease dissolved.
Some states and territories will still impose compensation charges if you keep on paying rent. But your case will not be treated the same as abandoning the agreement when you apply to the tribunal.
Breach of agreement
If your landlord breaches or repeatedly breaches the lease, you can ask for its early termination. The breaches should be repetitive, demonstrable, and/or a result of the landlord’s failure to act after several attempts to draw their attention to the problem.
For example, if the landlord fails to fix issues in the premises repeatedly, or if they ignore your pleas, the law is on your side.
Additionally, if the landlord breaches your right to privacy by entering the premises against your will, without your consent, or without your prior knowledge, you have grounds to terminate the lease cost-free.
Uninhabitable premises
The premises’ state can deteriorate to a point where it is no longer habitable. For example, the structure can weaken enough to be dangerous, or a health hazard may develop.
Under such circumstances, you can terminate the lease without incurring lease break fees and other penalties.
Domestic violence
If you are a victim of domestic violence, you can break a lease to save your life. In New South Wales, mediators and other professionals can ask their clients’ tenancies to be broken if they can demonstrate the impending danger of domestic violence.
In South Australia and Victoria, you can break the lease yourself if you are in danger of domestic violence. Furthermore, in Queensland, you can break the tenancy by giving a seven-day domestic violence termination notice if you’re fleeing a domestic violence situation.
