“My tenant’s lease is expiring on May 10, but I need the property back vacant by June 29. My property management agreement contract requires 90 days’ notice to withdraw from their services, and that has been given (90 days in advance). The agency advises me that the tenant is vacating three weeks earlier than the lease expires, but they have asked me to forfeit rent for the period the tenant vacates. I’m frustrated that management deemed it fit to ‘terminate’ the lease early and have asked me to brunt the rent. I was told this was the legal way to conduct business. Can you shed any light on this?” Owner, NSW

We asked Co-Founder and COO of Rent360, Penelope Valentine for her advice:

“The legislation changed on this about four years ago,” Penelope said.

“It stipulates that once you give the required 90 days termination on a ‘no grounds’ basis, the tenants are able to terminate their tenancy at any time within that period.

“The property manager should have advised the investor of this.”

Have a question you would like to see answered here? Let us know!

How the legislation explains this notice period

The landlord/agent can end the agreement without grounds by giving 90 days notice. If the tenant is on a fixed-term agreement, they can leave at any time before the date on the notice but will have to pay rent until the end of the fixed term. If the tenant is on a periodic agreement, they can move out and stop paying rent at any time before the date on the notice.

You might also like:
– Will my fixed-term lease automatically renew to a periodic?
– I should be on a fixed lease but I’m on periodic
– Periodic agreements: How does this change my lease?

Penelope Valentine
Penelope Valentine

Penelope Valentine is the Director and Co-Founder of Property Alchemy in New South Wales. Penelope's real estate career has spanned more than 18 years. In that time, she has held senior national management roles with McGrath, LJ Hooker and co-founded industry start-ups, including Rent360. She is qualified as a Licensed Real Estate Agent and holds a Bachelor's degree in Psychology from Sydney University.