What Happens When Tenants Want To Break A Lease Early

Understanding the complexities of lease agreements and the rights of both parties is important when a tenant decides to terminate a lease early. This blog will assist you to understand the steps that are taken to handle such situations effectively and efficiently with minimal disruption to a rental property.

A Rental Lease Agreement

Understanding The Legal Grounds for Lease Termination

Lease agreements are legally binding contracts and they typically include provisions for what happens if the lease is broken early by the tenant.

Both tenants and the property owner should familiarise themselves with the specific conditions under which a lease can be legally terminated. This knowledge empowers landlords to manage their rental properties more effectively, and provides tenants with an understanding of their obligations and a pathway moving forward.

Early Lease Termination

Here are key points to consider if a tenant wants to break their lease early:

When a tenant signs a fixed-term agreement, they are committing to stay for the full term. If a tenant wants to move out before the end of the fixed term, there could be costs involved.

There are some situations where a tenant can end a fixed-term agreement without penalty. Tenants should discuss their situation with their Property Manager, but can also be guided by the information found on fairtrading.com.au.

A tenant should give the landlord as much notice as they can if they need to end the agreement early, and should also make it as easy as possible for the landlord or agent to show the property to potential new tenants.

A transparent discussion about the reasons behind the tenant’s decision assists both parties in managing the process and to find a mutually beneficial solution.

The Financial Implications Of Breaking A Lease Early

Terminating a lease early can have significant financial impacts for landlords and tenants.


For the landlord, the immediate fallout is the loss of steady rental income until a new tenant is secure, and expenses relating to finding a new tenant.


Depending on the circumstances, tenants breaking a fixed-term agreement may incur mandatory break lease fees. Your property manager will be able to advise what penalties may or may not apply.

Effectively managing a lease termination involves understanding the situation, preparing for it and being open to solutions that benefit both the landlord and the tenant.

At Percival Property, we understand the unique challenges of rentals in Port Macquarie. With our expertise and local knowledge, we can help you in effectively managing your rental properties, ensuring a positive experience for both landlords and tenants. Contact us today for all your real estate needs and let us help you in navigating the rental market smoothly.