Lease Breaking
Posted on 07. Oct, 2009 by Karen Herbert in Lease Breaks
Q: My tenant has told my agent that he wants to get out of his lease early because he is being transferred. Can he do this and if so where do I stand?
A: A tenancy agreement is a binding legal document; however, unforeseen circumstances can mean that your tenant needs to break the lease, for example:
- Job relocation
- Redundancy
- Personal or family illness
- Family violence or separation
Of course, you may not want to lose money by agreeing to the lease being broken. Therefore you should make it clear to your outgoing tenants that they will be responsible for any costs incurred in finding suitable replacement tenants. Your tenants should also know they must keep paying rent until the replacement tenant moves in.
NOTE: The owner/agent also has an obligation to minimise the tenant’s loss. In other words, you cannot be seen to be jeopardising the tenant’s chances of finding a replacement tenant
Karen Herbert is the Principal of Position One, based in Brisbane, Australia. For further information or help with renting out and managing your property, please visit the Position One website.
