Residential Landlord & Tenancy
13. Early Termination - Tenant
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 15 Sep 2015
- There are many situations in which a tenant can terminate their lease agreement early.
- It is important that the tenant does so according to the requirements of the legislation in their state or territory of residence.
- It is also important to distinguish between ending the tenancy agreement early for personal reasons and ending the tenancy early for legal reasons such as multiple breaches by the landlord or a failure to fulfil their duties.
- If you are ending a tenancy early for personal reasons there may be various lease-break costs involved.
- However if you have legal grounds for terminating the agreement early those costs may be avoidable.
- If a tenant is renting under a periodic (month to month) tenancy the tenant can give the landlord notice of intention to vacate.
- Such a notice should be in writing and should be signed by the tenant.
- A tenant must give notice to the landlord the duration of which varies between states and territories.
- In Victoria 28 days’ notice must be given whereas in New South Wales only 14 days are required.
- It is important to note that this must be clear notice.
- As such you should add on any additional time required for posting the notice and its receipt by the landlord.
- Ending a fixed term tenancy before the lease term is finished can be more difficult than under a periodic (month to month) tenancy.
- When a tenant vacates the premises early with or without notice they may be subject to various costs and liabilities for breaking the lease.
- When a tenant moves out of the premises early the tenancy ends and the tenant is no longer obliged to pay rent. However the tenant may still incur other liabilities (costs).
- The landlord may be entitled to compensation for loss or damage arising from the early termination of a lease.
- For example a landlord may seek to have the tenant cover:
- any re-letting fees;
- advertising costs; and
- rent for a reasonable time or until new tenants move in.
- Some tenants may agree to pay rent for the remaining period of time left on the lease particularly if this is a short time and they have arranged to move out into new premises for personal reasons.
- Both the landlord and the tenant are required to minimise losses in the event of a lease being terminated earlier than the fixed term.
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