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https://www.tuv.org.au/advice/breaking-your-lease/
If you have a fixed-term tenancy agreement (often called a lease), and you want to move out before the end of the fixed term, you may be able to end your lease in one of the following ways. You need to take care because some methods of ending a lease may involve costs.
If your landlord is in breach of any of their ‘duties’ under the Residential Tenancies Act 1997 you may be able to end your tenancy early. This applies if the landlord:
hasn’t made sure the property was reasonably clean and vacant when you were supposed to move in
doesn’t make sure you have ‘quiet enjoyment’ of the property
doesn’t keep the property in good repair
doesn’t provide locks that secure external doors and windows, or doesn’t give you a key when they change a lock
doesn’t replace a faulty water appliance with an A-rated appliance
To end your tenancy before the end of the fixed term for any of the above breaches of duty by the landlord, there are certain steps that you need to take.
The first step is to send your landlord a Breach of Duty Notice to inform them that they must fix the problem (and if appropriate, pay you compensation) within 14 days.
If the landlord fails to do so, you can apply to the Victorian Civil and Administrative Tribunal for a Compliance Order.
If the landlord doesn’t abide by the Compliance Order, you can send them a 14-day Notice of Intention to Vacate.
You can also send your landlord a 14-day Notice of Intention to Vacate if you have sent them a Breach of Duty Notice twice before for the same breach, and your landlord breaches that duty for a third time.
Hardship
If something unforeseen happens and it will cause you severe hardship to stay in the property until the end of the fixed term, you can apply to the Victorian Civil and Administrative Tribunal to reduce the period of your fixed term and allow you to end your tenancy. You should ask the Tribunal to hear your case as quickly as possible. You must continue to pay rent as usual, until the hearing has taken place. If you plan to apply for hardship, you must do so before you move out.
To claim hardship, you will have to prove to the Tribunal that:
there has been an unforeseen change in your circumstances (eg you have lost your job) and you will suffer severe hardship if the tenancy continues; and
the hardship you will suffer if the tenancy is not ended will be greater than the hardship of the landlord if the tenancy is ended
You may still have to compensate the landlord if you break your lease due to hardship (see Costs).
Hardship and family violence
If you are a ‘protected person’ on a family violence intervention order and you need to move out of the property to protect yourself or your children, you can apply to the Tribunal to reduce the period of your fixed term and allow you to end your tenancy on hardship grounds.
If you are excluded from a rental property due to a family violence order, you also have the right to apply to the Tribunal to reduce the period of your fixed term and allow you to end the lease early on hardship grounds.
Giving up possession
If none of the above ways of breaking a lease are an option for you, you can end your fixed-term tenancy early by giving up possession of the property. This is usually done by giving the landlord notice that you will vacate the property (ie Notice of Intention to Vacate) and handing back the keys when you move out.
Costs
Breaking a lease on the grounds of hardship or by giving up possession can be costly. The landlord can claim compensation for any reasonable costs they have to pay as a result of you breaking the lease.
The costs you could be liable for include:
a reletting fee (usually one or two weeks’ rent). This must be based on the fee that the agent charged the landlord so it is a good idea to ask for a copy of the invoice
reasonable advertising costs
rent until new tenants move in or until the end of the fixed term (whichever happens first)
What the landlord or agent may not tell you is that you only have to pay the reletting fee and advertising costs on a pro-rata basis. This means you only have to cover these fees for the remaining term of the lease for which the landlord did not receive rent. For example, if you leave 7 months into a 12-month tenancy agreement, there is only about 40% of the fixed term remaining so you only have to pay 40% of the reletting fee and 40% of the advertising costs.
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