Q&A with Nicole - Breaking Lease

Q. Hi Nicole, We’ve just been advised that our tenant is breaking their lease. They signed for 12 months and are only 6 weeks in. We thought we had security and are now really concerned. Can they do this?


There have been changes to legislation in this area over the past 12 months. The changes particularly relate to the compensation element or break lease fee.


In your situation the tenant is breaking their lease at a very early stage, a break lease fee equivalent to six weeks rental is still enforceable. The closer the tenant is to the lease expiry the lower the break lease fee becomes, more information on this can be found on the Fair Trading website.


Another important change to be aware of is the domestic violence legislation that impacts on these fees should your tenant be in this type of situation.


If you have any other property management related questions our team would be happy to help.


Have a question or topic? Email nicole.kay@belleproperty.com