Property Management Pro Tips – Break Lease Fees

Siobhan Robinson, Business Development Manager from Ray White Carlingford speaks about what’s involved for Landlords when their tenant breaks their lease and the steps taken to protect your investment property.

From the 23rd of March 2020, tenants who experience domestic violence have the right to end their tenancy agreements early without penalty. From the 23rd of March 2021, tenants can also end their fixed-term tenancy agreements early without penalty if they provide 14 days’ notice and the landlord is given the opportunity to find a new tenant.

Break lease fees:

• 4 weeks rent if less than 25% of the agreement has expired
• 3 weeks rent if 25% or more, but less than 50% of the agreement has expired
• 2 weeks rent if 50% or more, but less than 75% of the agreement has expired
• 1 week’s rent if 75% or more of the agreement has expired.

Example:

• if 7 months of a 12-month tenancy agreement (or 58%) has expired, a tenant would need to pay a fee equal to 2 weeks’ rent to the landlord to end the agreement early
• if 2 months of a 6-month tenancy agreement (or 33%) has expired, the tenant would need to pay a fee equal to 3 weeks’ rent to the landlord to end their agreement early.