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“Can a tenant break their tenancy agreement? If so, how does it work?” – Owner, WA

We asked Managing Director at Murray Property, Michael Murray, for his advice on this question:

“Yes, there are two break lease options that owners can insert into the Residential Tenancy Agreement,” Michael said.

He explained the options as follows:

Option 1

“Should the tenant wish to vacate the property prior to the expiration of the fixed term, the tenant will be liable to reimburse the landlord the following costs,” Michael said.

– Rent up until the property is re-let or the end of the fixed term, whichever is sooner;

– The applicable letting fee; and

– The applicable advertising costs.

Option 2

“The tenant would be able to break the lease at any time during the tenancy with no minimum amount of notice required,” Michael said.

“If the tenant is less than halfway through the tenancy agreement, they would need to pay a 6 week break lease fee.”

“If the tenant is more than halfway through the tenancy agreement, they would need to pay a 4 week break lease fee.”

For more information on the regulations as they apply in your state, consult your state tenancy authority.

Michael Murray
Michael Murray

Michael Murray is the Managing Director at Murray Property Agents in Paddington, New South Wales. He is a respected real estate agent with over 17 years of experience and a track record of achieving leasing and sales results. Michael has been working with the office since 2014. He holds Certificates 3 and 4 in Property Services, a Diploma of Property Services (Real Estate), an Advanced Diploma of Property Services (Valuation), and is a licensed Real Estate Agent.