Mandatory fees apply to all fixed-term agreements of three years or less, when a tenant ends the lease agreement early. This applies to agreements that are entered into from 23 March 2020 onwards, which is when these rules were changed.
The break lease fees are:
- Four weeks rent if less than 25 per cent of the lease has expired
- Three weeks rent if 25 per cent or more but less than 50 per cent of the lease has expired
- Two weeks rent if 50 per cent or more but less than 75 per cent of the lease has expired
- One week’s rent if 75 per cent or more of the lease has expired.
If seven months of a 12-month tenancy agreement (or 58 per cent) has expired, a tenant would need to pay a fee equal to two weeks rent to the landlord to end the agreement early.
If you would like any further details in this area, please contact our Property Management Team or Fair Trading NSW.
02 4295 1550