Compare Listings

How to Handle Tenants Leaving Early from a Fixed-Term Lease

How to Handle Tenants Leaving Early from a Fixed-Term Lease

If your tenants want to break their fixed-term tenancy agreement before the end date, don’t worry. There are straightforward steps to protect your property and investment.

When Tenants Want to Leave Early

Tenants’ circumstances can change and sometimes they need to move out before the lease ends. They have the right to do so giving 14 days notice breaking their lease.

In NSW, breaking a tenancy agreement early will result in the below fees payable –

  • If they have been in the tenancy for less than 25% of the fixed term: 4 weeks rent
  • If they have been in the tenancy for 25% to less than 50% of the fixed term: 3 weeks rent
  • If they have been in the tenancy for 50% to less than 75% of the fixed term: 2 weeks rent
  • If they have been in the tenancy 75% or more: 1 week’s rent 

What You Can Do
The most practical approach is to communicate with your tenant while seeking a replacement tenant as quickly as possible. The current tenant should allow property viewings for potential new tenants without any hindrance.

Special Circumstances for Breaking a Lease Without Penalty

Tenants can break a lease early without penalty under specific conditions, such as:

-If you put the property up for sale without informing the tenant before the lease was

signed.

-If the tenant moves into an aged care facility or nursing home (excluding retirement

villages).

-Domestic Violence

How Can You Help Future You?

Using an Agent or Property Manager can be invaluable in this process. They can offer specific advice, help find a new tenant quickly and reduce your stress.

If you have any questions on this topic, please feel free to call our office on 4228 8400. We would be happy to provide advice.

img

Linda Villella

Related posts

Top Tips for First-Time Landlords

Our team often receives inquiries from individuals embarking on their journey as landlords....

Continue reading
by Linda Villella

Energy Saving Tips To Keep Your Home Warm This Winter

6 Energy-Saving Tips to Keep Your Home Warm and Wallet Happy This Winter As the winter chill...

Continue reading
by Linda Villella

How Much Do You Need To Set Aside For Maintenance?

Property maintenance is a major and ongoing expense in investment property ownership, yet it's...

Continue reading
by Linda Villella