Life changes can sometimes mean needing to move out of your rental property before your lease ends. While breaking your lease early might seem challenging, following the right steps can make the process smoother. Here’s a guide to help you understand your options and obligations when ending your lease early.
1. Understand Your Lease Terms
Your lease agreement is a legally binding contract, so breaking it early may have financial and legal implications. Before making any decisions, review your lease to understand the notice period required and any fees related to early termination.
2. Reasons for Breaking a Lease Early
Under the Residential Tenancies Act (VIC), there are certain valid reasons that may allow you to end your lease early without penalties. These can include:
- Family violence, with supporting evidence.
- The property becoming uninhabitable due to damage or safety risks.
- Serious health and safety risks not caused by the tenant.
- The sale of the property if the landlord did not notify you of the sale when the lease was signed.
If none of these apply, you can still break your lease, but there may be additional steps and costs involved.
3. Notify Your Property Manager
If you decide to break your lease early, contact your property manager as soon as possible. This notification should be in writing and include your intended vacate date. While a typical notice period is 28 days, this may vary depending on your lease agreement. Your property manager will guide you through the next steps and explain any potential costs.
4. Lease Break Fees
If you’re breaking your lease early for reasons not covered by the Residential Tenancies Act, you may be required to pay lease break fees. These may include:
- Rent payments until a new tenant is found or until the lease ends (whichever comes first).
- Advertising and reletting costs, which may be split between you and the landlord.
Your property manager will work to find a new tenant as quickly as possible, as the landlord has a legal obligation to minimise the costs you incur.
5. Finding a New Tenant
To reduce costs and speed up the process, you may want to assist your property manager in finding a replacement tenant. While this can be helpful, remember that any new tenant must be approved by your property manager and meet the necessary requirements.
6. What Happens If You Don’t Follow the Process?
If you move out without following the proper steps, you could be liable for ongoing rent payments, reletting fees, and even legal action. This could affect your rental history and make it more difficult to secure future rentals.
7. Negotiating with Your Property Manager
In some cases, your property manager may be able to negotiate a solution, such as reducing the break fees or working to find a new tenant quickly. It’s always worth having a conversation with your property manager to explore your options.
Breaking Your Lease? Here’s What to Do:
- Review your lease to understand the terms and possible fees.
- Notify your property manager in writing about your intention to end the lease.
- Work with your property manager to find a new tenant if possible.
- Be aware of your financial obligations as outlined in the Residential Tenancies Act (VIC).
Breaking a lease early doesn’t have to be stressful if you follow the right steps and stay in communication with your property manager. At Cliquey Realty, we’re here to help guide you through the process and ensure a smooth transition.
