New Residential Tenancy Laws Make It Easier & Cheaper for Tenants to Break a Fixed Term Rental Agreement Before the End of the Term

Mandatory fees now apply to all fixed-term agreements of three years or less, when a tenant ends the agreement early. This applies to agreements that are entered into from 23 March 2020 onwards, because of changes to the Residential Tenancies Act. 

The break fees are: 

• Four weeks rent if less than 25 per cent of the agreement has expired; 
• Three weeks rent if 25 per cent or more but less than 50 per cent of the agreement has expired; 
• Two weeks rent if 50 per cent or more but less than 75 per cent of the agreement has expired; 
• One week’s rent if 75 per cent or more of the agreement has expired. 

For example: 

• If seven months of a 12-month tenancy agreement (or 58 per cent) has expired, a tenant would need to pay a fee equal to two weeks rent to the landlord to end the agreement early. 
• If two months of a six month tenancy agreement (or 33 per cent) has expired, the tenant would need to pay a fee equal to three weeks rent to the landlord to end their agreement early. 

The changes make is so much easier for people who have entered into a long-term residential tenancy agreement and wish to break it earlier to move into a home they have purchased or if they have to move out of the rented accommodation for financial or other reasons. 

If we can help, please call us on 9543 1444 and make an appointment.