How To Break Your Rental Lease In Sydney, NSW
Entering a rental agreement is a significant commitment that lasts for a fixed term. These contracts are governed by the Residential Tenancies Regulation 2019 and the Residential Tenancies Act 2010. Tenants must understand the terms and conditions thoroughly before signing the document.
If the renter plans to move out of the rented property before the end of the lease, they have to pay a penalty for breaking the lease. Although such situations are rare, they can occur if the tenant finds a new job in a different city or gets into a dispute with the landlord.
The penalty for breaking the lease early is known as the break fee, and it can be waived in certain situations, such as domestic violence. The landlord is also entitled to end the lease before its term but they must notify the tenant in advance. Let us understand the details of breaking a rental lease in Sydney, NSW. This information can help tenants know their rights in difficult situations.
1. Conditions When Tenancy Can Be Ended
Tenants can end both fixed and periodic-term lease agreements if the landlord breaches the contract. They can also opt to apply to the NSW Civil & Administrative Tribunal (NCAT) to pass an order that makes the landlord fix the breach. Renters can also end the lease if the property becomes unsuitable for habitation, such as destroyed in floods or fire.
They can also choose an early termination if they realise the landlord or agent withheld certain important details about the property or made false claims. The renter can also exercise this right when they have entered a fixed-term agreement of two or more years. In this agreement, the landlord can raise the rent once in a year by providing a notice in advance. The tenant can still end the tenancy even after receiving the notice by providing a 21-day termination notice.
2. Break Fee for Ending the Lease
Sometimes the reasons for moving out of the house may not fall into the conditions mentioned above. The tenant can still end the lease by sending a notice to the landlord in advance and hiring professionals for the best end of lease cleaning Sydney to leave the property in its original condition. The tenant has to pay a set break fee for agreements of 3 years or less.
The mandatory break fee is four weeks’ rent if 25% of the lease term is completed. It is three weeks’ rent if less than 50% of the lease term is completed. It will be two weeks’ rent if less than 75% of the lease term is completed and one week’s rent if more than 75% has been completed.
For lease agreements with a term of more than 3 years, the landlord and the tenant agree on compensation based on the costs and losses incurred by the landlord due to the early termination.
3. Terminating the Tenancy Early
The termination notice must be given in writing 14 days in advance to the landlord with the date on which the property will be vacated. The notice must have the address of the property and the reason for early termination and must be signed and dated correctly. The tenant must pay the rent until the day of vacating the property and leave it reasonably clean. The break fee is paid in addition to these expenses, so renters must add the cost of hiring end-of-lease cleaning Sydney professionals to the rent.
The tenant can discuss waiving the break fee or reducing the amount through negotiations. They must also check about retrieving the bond after the cleaning has been completed. Clarify who will claim the bond to avoid any disagreements.
4. Conditions When Break Fee is Not Applicable
The mandatory break fee is not applicable in certain situations, such as when the tenant and a dependent child are facing domestic violence. In this case, it can be ended immediately. There are other conditions when the break is not applicable, but a 14-day notice has to be provided. These include accepting an offer of social housing and moving into an aged care facility or nursing home that is not a retirement village.
The tenant can end the lease without penalty if the landlord puts the property on sale during the fixed term without informing the tenant about it. The lease can also be terminated if the property is listed on the Loose Fill Asbestos Insulation register during the lease period. Under all these conditions, the tenant must pay the rent until the day they move out.
5. Resolving Termination Disputes
Since early termination is not the normal course of action, it can become the bone of contention between the tenant and the landlord. After the 14-day notice has been served, they must discuss the early termination and agree. If the termination has been initiated because of issues like a breach of the agreement, the tenant can lodge a complaint with NSW Fair Trading’s online compliant service.
Tenants can also get support from the Tenants’ Union of NSW, which provides free and unbiased information and advice for resolving disputes. They also help tenants with cleaning disputes that occur when they are unable to meet landlords’ expectations while performing end-of-lease cleaning in Sydney.
Breaking A Rental Lease In Sydney
Wrapping up
Residential tenancy agreements must be read and understood before signing to ensure the landlord is providing the correct details and has not withheld any information. Check for the break fee clause and understand your rights as a tenant if you wish to break the lease early.
