A few tenants have asked us lately what happens if they need to break their lease agreement. For various reasons someone might need to do this, reasons can include relationship break up’s, job changes resulting in moving overseas or interstate, financial reasons, new relationships and the list goes on.
Whatever the case may be it is important to know where you stand as a Tenant and Owner.
Are liable to pay rent until a new tenant moves in (up to when the Lease ends)
Are required to pay any advertising costs to find a new tenant (in accordance with the Landlords agreed fees with the agent)
Are required to pay a pro rata leasing fee (in accordance with the Landlords agreed fees with the agent)
Are required to leave the property in the same condition as when they moved in
Are required to pay the balance of the pro rata advertising and leasing fee (in accordance with the Landlords agreed fees with the agent)
Need to approve the new applicant before the new lease can be signed, once the new lease is signed the tenant transfer can take place.
Please note the following link to Consumer Affairs Victoria detailing the full obligations of the parties.
If you are thinking of breaking your lease have a chat with your property manager and make sure you are clear on all the costs involved. For an owner if this happens to you make sure your agent is doing thorough checks and is taking care of your interests whilst managing the process. Contact us today for a confidential discussion.