Break Lease Information

Early Termination Of Lease (‘Break Lease’)

When you sign a fixed term tenancy lease you are committing to stay for the full term. If your circumstances change and you want to move out before the end of the fixed term, there could be potential costs involved.

Costs you may have to pay
If you need to end your agreement early, you should give as much notice as you can. The more you can do to help the less you may have to pay. You should make it as easy as possible for the landlord or agent to show the premises to potential new tenants.

Should your tenancy agreement not include a Break Fee, a landlord may wish to seek compensation for financial loss due to you breaking your lease term early.

These costs may include, loss of rent, advertising and a letting fee. If you are unable to mutually agree on the amount of compensation, the landlord may claim from your bond or apply to the NSW Civil and Administrative Tribunal.

Be aware that if you owe more money than the bond your name could be listed on a tenancy database. Such listings can make it difficult to rent again anywhere in Australia.

Break fee

The break fee is a penalty you agree to pay if you move out before the end of the fixed term.

If the fixed term of the agreement is for three years or less the break fee is:

  • Six weeks rent if you move out in the first half of the fixed term.
  • Four weeks rent if you move out in the second half of the fixed term.

If the fixed term is for more than three years and you and the landlord agree to include a break fee clause, you can agree on the amount and write it into the agreement.

If your tenancy agreement does not include a break fee, a landlord may still seek compensation by applying to the NSW Civil and Administrative Tribunal. These costs may include, loss of rent, advertising and a letting fee if your landlord uses an agent. If you are unable to mutually agree on the amount of compensation, the landlord may claim from your bond or apply to the NSW Civil and Administrative Tribunal.