Understanding the break lease process

Before we dive into the specifics, let's briefly revisit what a break lease entails. A break lease occurs when a tenant prematurely terminates their lease agreement before the fixed term ends. This could arise due to various reasons, such as a change in circumstances, job relocation, or personal preferences.

The Process

If you want to break your lease early you can do so, however, you will be asked to pay ‘break lease’ costs are expensive.

While it’s best to avoid breaking your tenancy agreement, we understand that sometimes situations arise where you will want to do so.

The good news is that there are options available to you if you need to break a lease early. In this guide, we will explore how to break a lease and minimise costs to make the process as smooth as possible for all involved.

The first step is to let your property manager know as soon as possible – the sooner the better. Notice needs to be provided in written form.

Try to remain flexible and open to negotiation with your property manager as you’ll need to work together as a team to find a new tenant. Not only will this minimise your costs (which we’ll get to a bit later), but it will also help you obtain a good reference for future rentals.

Whatever causes you to break your lease early, it’s important to remain open and cooperative with your landlord and agent to avoid leaving on bad terms. This is even more important if you’re a first-time renter. If you ever will be renting again, we will be contacted for references with the main questions being:

  • How was the tenant to deal with?
  • Did the tenancy end amicably?
  • Was the tenant co-operative?
  • Would you rent to them again?

What happens if you break a lease?

Breaking a lease early means you are leaving your tenancy agreement before the agreed-upon length of tenancy. Since a tenancy agreement is a legally binding document, breaking it early will mean compensation& reimbursement of costs will need to be paid.

Cover any costs of breaking the lease

In the “Standard Terms” of your lease, likely Item #7 is states you will need to cover the costs of breaking your lease. Make sure you do so as soon as you can to mitigate your own loss.

These costs include paying rent up until a new tenant moves in, the costs of advertising the property, letting fees, applicant background checks or break fees. You will need to help your landlord find a new tenant, which might reduce the costs that come with breaking your lease early. The RTA also states there is an onus on you to assist in your decision to break a lease.

Advertising:

If you do not wish to pay for advertising, then we will not be able to assist. It will then be up to you to find enquiries, applicants and a suitable tenant for approval to take over your lease. You will still need to pay for all other costs mentioned above except for the advertising cost.

Signing:

You will be required to sign various documents before we can assist. Even if you paid break lease costs, advertising etc, signing these forms is still required for us to proceed.

What is everyone responsibilities?

The landlord and their agent must take all reasonable steps to re-let the premises. For absolute clarity this is:

Advertising the property for rent, this happenonce you have transferred the advertising costs to the agent. Until this is done, the property will not be advertised as it is an upfront cost.

The agent will do 1 to 2 inspections a week dependant if and how many enquiries there are on the property. The inspection time will be set for the time most of the enquires are able to attend.

You cannot specify or limit the entry times as this needs to be worked out between enquiries and our staff’s calendars. You must not limit the ability for us to assist.

If you wish to specify a time, then we will advertise an open home time online and you will need to fulfil your obligation to assist and mitigate your own loss. You will be required to show people through at the time you requested.

Our staff showing times are between 10am and 4pm weekdays dependant on our schedules. Property management does not open on weekends.

Your responsibilities:

  • Make the property available for inspections when needed.
  • Assist in inspections.
  • Assist in mitigating your own loss by advertising on social media and any other form of media.

Showing people through:

If you wish to make the process faster and do individual inspections, we may be able to send you all the enquiries. You will then be able to follow up via email, sms or phone calls with each enquiry and set inspection times. For any enquiry questions beyond inspections just let the enquirer know they need to contact the agency.

Bond funds:

Some past tenants have asked for us to take all costs out from the bond. This cannot be done as the bond is there for any items needed once lease has ended. As you are breaking you lease, it has not ended yet. Therefore, you will need to transfer costs when requesting to break you lease. This is not negotiable.

Maintaining the property & exit reports:

Even though you are breaking your lease you are still required to maintain the property, keep it clean, maintain pool if you have one, maintain gardens etc. An exit report is not done until a new tenant has been found and your final vacate date has been confirmed.

Exit Report:

Remember that even though it’s a break lease situation, your property manager will still need to conduct the normal processes involved with a vacate. This can include you completing a bond clean, fixing any damage you’ve caused, getting carpets cleaned or getting pest control done if you had pets.

This all needs to be done in order to get the property to the same condition in which you found it (less wear and tear). In other words, it needs to meet the same standard it was in when the entry condition report was done. If you cooperate and follow these processes, you’re more likely to get your entire bond returned to you once an exit condition report has been completed and signed off by your property manager.

Agent’s responsibilities:

It is important to understand what break lease responsibilities are. As an agency our responsibilities are purely to advertise the property and set inspection times as stated above. If you wish to go above and beyond these responsibilities, you will need to assist in mitigating your own loss. The “letting fee” only covers costs in preparing lease, re-doing new entry reports, lodging bonds, setting new tenants up, smoke alarm checks, water meter reads.

Screening new tenants

When potential replacement tenants express their interest in the property, the agency must ensure thorough screening procedures to maintain the property's integrity and perform background checks, contact references, and assess their suitability as tenants.

Once a suitable candidate is likely found, the landlord must approve the tenants. Once approved the agency will facilitate the necessary paperwork to enter into a new tenancy agreement and ensure a seamless transition. Keep all parties informed about the progress to instil confidence and transparency throughout the process.

Finalising the break lease

As the break lease process nears completion, the agent will ensure all legal documentation is in order. Terminate the existing lease agreement with the outgoing tenant and ensure that they have formally completed the RTA Form 13 to end the tenancy.

Perform a comprehensive final inspection of the property. Handle the return of the tenant's bond in accordance with the Residential Tenancies Authority (RTA) guidelines. Promptly address any disputes or outstanding matters to finalise the break lease process successfully.

Maintaining professionalism and empathy

Throughout the break lease process, it's vital to maintain professionalism and empathy.

Understand that unexpected situations can arise, and all parties may find themselves in difficult circumstances. By approaching the process with understanding and empathy, you can foster positive relationships.

Handling the break lease process in Queensland necessitates knowledge, organisation, and communication. By following these simple steps, we can all navigate this process with confidence, minimising financial impact, and maintaining strong relationships with both tenants and lessors.

Hostile / Aggressive behaviour:

We understand that the decision to break your lease will involve items, costs and procedures you are not familiar with. However, any aggressive or hostile messages, emails, calls are not welcome or appreciated.

These will be noted and saved and will form part of any references we are requested to do for years to come. So please act and treat our team with respect and care.

We place as much information online so you can associate yourself with the process and costs. We will answer any questions and send any information needed to help and you also have a duty of care to assist in breaking a lease and mitigating your own loss.