Breaking a fixed-term lease in Tasmania
What is involved for the tenant when breaking a fixed-term lease?
September 2022 | By Fall Real Estate | 6 Minute Read | Tags: Guide, Rent
In this article
- Can you break your lease before the end date is due?
- What are your responsibilities as a tenant, and how can you break a fixed-term lease?
- Will breaking your lease cost you, and what are your options?
- Will breaking your fixed-term lease early impact your future references in Tasmania?
Sometimes life doesn’t go as expected, and you realise you must end your fixed-term lease agreement before the official end date.
Breaking your lease before the end date could be due to financial, relationship, family, or work-related problems. Perhaps you have been offered a new position in another state or need to move closer to family. Whatever the reason, you may need to break your lease agreement early when renting your house in Tasmania.
In this article, you will find information* about the tenant’s responsibilities and costs when breaking a fixed-term lease agreement.
Can you break a fixed-term lease?
A tenant can break a fixed-term lease agreement before the official end date. However, breaking the lease may come at a cost to the tenant.
Being open and informing your property manager or property owner as soon as possible could help lower costs and make breaking the fixed-term lease easier.
How do you break a fixed-term lease?
To break your lease agreement, you should first inform your property manager or property owner in writing at the earliest opportunity. You can find the contact details of your Fall Real Estate Property Manager here.
You can inform your property manager of your intentions through an email, letter or by calling your property manager directly.
Your Fall Real Estate Property Manager will provide you with a Break Lease Form to complete. This form will start the official process of breaking your fixed-term lease agreement. The paperwork will ask for the following information:
- The date (the date that you are writing to inform the property manager of your intention to break the lease)
- Your full name (the tenant)
- The owner’s full name
- The address of the property you are renting
- The details around why you are breaking the lease agreement
- The date to leave the property and return the keys (the official date of breaking the lease agreement)
If you need support filling in your Break Lease Form, please do not hesitate to contact our helpful Fall Real Estate staff.
How much will it cost?
If you are looking to break your fixed-term lease before the agreed end date, then both you (as the tenant) and the property owner (or their property manager) need to keep the financial losses to a minimum - this is known as the “duty to mitigate loss”. In other words, both parties should reasonably try to avoid any losses due to the broken lease agreement.
The tenant is required (unless otherwise agreed) to continue to pay rent until the lease expires or a replacement tenant has moved in – whichever occurs first.
In addition to paying the rent, you may need to pay for a portion of the advertising costs. Your property manager can explain how this works, and you can ask to stay informed throughout the process.
Overall, the cost of breaking a fixed-term lease agreement varies. The cost is something you will be able to discuss with your property manager or property owner.
Some factors that will impact the cost to the tenant are:
- How much time remains on the lease agreement
- How quickly a new tenant can move into the property
- The amount of advertising needed to find a tenant
- The property owner
Will breaking your lease in Tasmania impact future references?
Rental history and references will make it possible for future property managers or owners to know you have broken your lease. However, this does not mean you will get a negative review, nor will you have a red mark next to your name.
If you handle your lease break with respect and transparency and make the process as easy as possible, your previous property manager or property owner can still give positive feedback.
Breaking your lease is possible; however, you should not do so lightly. Hence, breaking your lease requires you to meet your role as a tenant. Part of this role is letting your property manager or owner know as soon as possible to make life easier for both parties.
To learn more about breaking a fixed-term lease in Tasmania and your options as a tenant, please call Fall Real Estate on 6282 8000.
The information from this article; was collated from the following sources.
Tasmanian Government. (2022). Tenant ending a fixed-term lease. Retrieved July 2022.
Tenant Union. (2015). Leaving lease early or breaking the lease. Retrieved July 2022.
Jones, K. (2021). How to break a lease early. Retrieved August 2022.