Historically, when a tenant broke their lease agreement early, they were responsible for continuing to pay the remainder of the lease until a suitable replacement tenant moved into the property, and they were also responsible for any reasonable advertising or marketing costs to the owner resulting from the need to readvertise the property.
Recent legislation passed through the Queensland government has now changed this situation.
As of 30 September 2024, the following will apply to all residential leases that are 3 years or less duration:
LESS THAN 25% OF LEASE IS EXPIRED:
If a tenant breaks the lease when less than 25% of the lease has expired (ie: less that 3 months into a 12 month lease), the tenant is required to pay a break lease fee of 4 weeks rent only.
25% TO LESS THAN 50% OF LEASE IS EXPIRED:
If a tenant breaks the lease when 25% or more of the lease has expired, but less than 50% of the lease has expired (ie: 3 months to less than 6 months into a 12 month lease), the tenant is required to pay a break lease fee of 3 weeks rent only.
50% TO LESS THAN 75% OF LEASE IS EXPIRED:
If a tenant breaks the lease when 50% or more of the lease has expired, but less than 75% of the lease has expired (ie: 6 months to less than 9 months into a 12 month lease), the tenant is required to pay a break lease fee of 2 weeks rent only.
75% OR MORE OF LEASE IS EXPIRED:
If a tenant breaks the lease when 75% or more of the lease has expired, (ie: 9 months or more into a 12 month lease), the tenant is required to pay a break lease fee of 1 weeks rent only.
The tenant can be charged no other break-lease costs or charges. Of course, any outstanding rent ow bills such as water charges must still be paid by the tenant.
As always, please seek and listen to the advice of our property managers in relation to this issue, other recent and/or upcoming legislative changes, and all other property management matters.