Breaking a rental lease in New South Wales isn’t always simple — but in 2025, the rules are clearer than ever. Whether you're relocating, facing financial hardship, or need to leave early for personal reasons, here's how to legally break your lease while protecting your rights and minimising costs.
Let’s walk through the steps, what fees might apply, and how the updated rental laws affect your options.
1. Review Your Lease Agreement First
The start date of your lease plays a big role in how break fees are handled.
Leases that started after 23 March 2020: Break fees only apply if they’re written into your agreement.
Leases that started before 23 March 2020: Break fees may be optional, and landlords must prove their actual losses if not specified.
Always read your tenancy agreement carefully to see if break fees are included.
2. Give Written Notice (At Least 14 Days)
To break your lease, you must give your landlord at least 14 days’ written notice.
Your notice should include:
The property address
The reason for leaving (optional but useful)
Your intended vacate date
Your signature and the date
Deliver the notice via email (with confirmation) or post, and keep a copy for your records.
3. Understand Break Fees (If They Apply)
For fixed-term leases up to 3 years:
If your lease includes break fees, here’s how they usually apply:
📅 When You Leave | 🧾 Fee (Post-March 2020) | 🧾 Fee (Pre-March 2020) |
First half of lease | 6 weeks’ rent | 4 weeks’ rent |
Second half of lease | 4 weeks’ rent | Based on actual loss or time left |
If your lease is longer than 3 years, break fees don’t automatically apply — but you may still need to negotiate compensation for the landlord’s reasonable losses.
4. What Landlords Can Still Claim
Even if a set break fee doesn’t apply, landlords may still seek compensation for:
Lost rent until a new tenant is found
Advertising or letting fees
Cleaning or repair costs (if you’ve caused damage)
They must mitigate their loss by making a genuine effort to find a new tenant quickly.
5. How to Minimise Penalties
Here are some smart ways to reduce or avoid break lease costs:
🔄 Find a Replacement Tenant
Offer to transfer your lease or find someone to take over — this often shortens the vacancy period and reduces what you owe. You can do this by using leaso.com
💬 Negotiate with Your Landlord
If you're leaving due to financial hardship, job loss, or personal issues, you can request a fee waiver or reduction. Providing evidence helps.
6. Leave the Property in Good Condition
To protect your bond refund, make sure the property is clean and damage-free when you leave.
✅ Tips:
Clean carpets, ovens, and windows
Remove all rubbish and personal items
Complete a final condition report
Keep receipts for professional cleaning if used
7. How 2025 Rental Reforms Impact Early Termination
Starting May 19, 2025, new laws give tenants stronger protections overall:
Landlords must provide a valid reason to end tenancies
Rent increases are limited to once every 12 months
Pet requests must be reasonably considered
These changes mostly affect landlords — but they also strengthen your position when discussing lease breaks or negotiating early exit terms.
FAQs – Breaking a Lease in NSW
Q: Can I break my lease early for any reason?
A: Yes, but you may need to pay a break fee or cover the landlord’s losses unless you're leaving for a legally protected reason.
Q: What if my landlord tries to charge unreasonable fees?
A: You can challenge unfair costs through NSW Fair Trading or the NCAT tribunal.
Q: Can I break my lease to escape domestic violence?
A: Yes. Special protections apply — you can end a lease immediately and without penalty with the proper documentation.
Q: Will the 2025 changes help tenants break leases more easily?
A: The reforms mainly affect landlords' ability to terminate tenancies — but they may make landlords more open to negotiation in early exit situations.
Final Tips
Breaking a lease can feel stressful, but by following the right steps, you can minimise financial impacts and exit legally. Be proactive, stay communicative, and know your rights — especially with NSW rental laws now shifting in favour of transparency and fairness.
If you're unsure, contact NSW Fair Trading or speak to a tenancy advocate for tailored advice.