Breaking a Lease in Toowoomba

When a tenant in Queensland decides to terminate a fixed-term tenancy agreement before its end date—commonly known as "breaking the lease"—they may be responsible for compensating the property manager or owner. Recent legislative changes, effective from 30 September 2024, have introduced a structured approach to calculating these reletting costs.

Reletting Costs Calculation

The reletting costs a tenant is liable for are determined based on the proportion of the lease term that has expired at the time of termination. The breakdown is as follows:

• Less than 25% of the lease expired: Tenant pays 4 weeks' rent.
• 25% to less than 50% expired: Tenant pays 3 weeks' rent.
• 50% to less than 75% expired: Tenant pays 2 weeks' rent.
• 75% or more expired: Tenant pays 1 week's rent.

For tenancy agreements up to three years in duration, the tenant is responsible for the lesser amount between the specified reletting cost and the rent payable until a new tenant is secured. This ensures that tenants are not overburdened with excessive costs.

Example Scenario

Consider a tenant with a 12-month lease paying $500 per week:

• Lease Duration: 12 months
• Weekly Rent: $500
• Termination After: 3 months (25% of lease term)

In this case, the tenant would be liable for 4 weeks' rent as a reletting cost, totaling $2,000.

Additional Considerations

It's important to note that these reletting costs are designed to compensate the property manager or owner for the early termination of the lease. However, tenants may also be responsible for other reasonable expenses incurred by the property manager or owner, such as advertising costs to find a new tenant. The property manager or owner is obligated to take reasonable steps to mitigate any losses, which includes making efforts to relet the property promptly.

Resources

For more detailed information and to access the online reletting costs calculator, tenants and property managers can refer to the Residential Tenancies Authority (RTA) website.

Understanding these provisions helps both tenants and property managers navigate the process of ending a tenancy agreement early, ensuring compliance with Queensland's rental laws.