How Much Does it Cost to Break a Lease?
Breaking a lease can be a tricky and costly experience for renters in Australia. Tenants may need to end theirs early. Reasons include a job relocation, a change in personal circumstances, or dissatisfaction with the property. Due to this, renters must know the actual cost of breaking their lease. The financial implications can be significant, and it is essential to know what to expect. This guide will explore the various expenses associated with breaking a lease in Australia, including penalties, rent payments, and potential legal fees.
Here is How Much it Will Cost You to Break a LeaseThis guide will provide tips on minimising costs and navigating the process effectively so you can make informed decisions and protect your financial interests. Whether you are a renter considering breaking your lease or a landlord dealing with a tenant who wants to leave early, this guide provides the information you need to make the best possible decisions.
Is There a Fixed Rate for Breaking a Lease?Breaking a lease in Australia varies for every state. There's no fixed break-lease fee for most states except for NSW, where a new rule was introduced in 2020 that makes break-lease fees mandatory.
According to NSW Fair Trading, mandatory break fees may apply, which are payable based on the stage of the agreement. A break fee is a penalty a tenant agrees to pay if they move out before the fixed term ends.If the mandatory break fee applies, the set fee payable is: