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Home Loan Variable: 5.84% (5.91%*) • Home Loan Fixed: 5.48% (6.24%*) • Fixed: 5.48% (6.24%*) • Variable: 5.84% (5.91%*) • Investment IO: 5.78% (6.81%*) • Investment PI: 5.58% (6.62%*)

What happens if I break my lease?

The best-laid plans don’t always go according to the path that you set out on and changes in life circumstances can occur. It may be that you need to downsize or relocate for work or reasons outside your control. 

It is possible to break your lease should you need to, however, there are requirements and costs that are associated with breaking the contract. 

What are the fees

Depending on which state you are renting in will determine the costs that you may be liable for when breaking your lease. Some of these costs may include:

  • A lease break fee is the equivalent of a week’s rent or more depending on how far you are through your lease agreement.
  • Potential re-letting costs including letting fees and advertising costs 
  • Rent until a new tenant is found

When is the lease deemed broken?

It is mindful of being aware that the lease agreement is not deemed to be broken until you have moved out of the property and handed back the keys to your property manager on vacate. 

Before this time, it is important to provide your property manager or landlord with the required notice to vacate the property and details of the date that you will be handing back the keys. They will then communicate with you the terms and requirements under the lease break so that you can prepare for your vacate day.

Rent is still payable on the property until the date that you hand back the keys and after this time, the relevant lease break costs will come into effect.

Do they need to show people through

The agent will usually advertise the property as soon as possible once you provide notice to vacate. They will aim to find a new tenant in the shortest possible time to minimise the costs of a vacant property.

It is important to allow access for inspections so that a new tenant can be found, which in some cases can also reduce your costs, depending on the lease break requirements in your state.

What happens if the situation is outside my control

There are sometimes extenuating circumstances that are outside your control which may deem a reduction in the lease break costs that you are liable for. 

Situations that may be unavoidable may include:

  • Death of co-tenant 
  • Acceptance of temporary crisis accommodation or a domestic violence situation
  • Acceptance of social or special care housing 
  • Experiencing financial hardship
  • Breach of the lease agreement conditions by the landlord

If you do feel that you need to break your lease agreement for any reason, reach out to our property management team who can talk you through the obligations and requirements of your tenancy before you provide notice.

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