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.
- 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.
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