How Much Does It Cost to Break a Lease in NSW? A Detailed Guide

Breaking a lease in New South Wales (NSW) can come with financial consequences, and knowing the costs involved is crucial for tenants who need to end their tenancy early. Whether you’re moving for work, experiencing a change in circumstances, or dealing with an uninhabitable property, understanding how much it will cost to break your lease helps you plan ahead and avoid unnecessary expenses.

In this article, we’ll explore the typical costs of breaking a lease in NSW, including break fees, re-letting fees, and other potential charges. We’ll also explain how using Leaso.com can save you money by helping you find a new tenant quickly.

In NSW, most rental agreements include a break fee clause that outlines the cost a tenant must pay if they terminate the lease early without a valid reason. This clause is designed to cover the landlord’s expenses in finding a new tenant and minimising the financial impact of a vacant property.

Under the Residential Tenancies Act 2010 (NSW), break fees are structured as follows:

These break fees apply only if the break fee clause is included in your lease agreement. If no such clause exists, you may be responsible for additional costs such as re-letting fees or paying rent until a new tenant is found.

While the break fee is the most common cost, there are additional expenses you could face when breaking a lease early. Understanding these costs can help you budget accordingly and avoid surprises.

If your lease doesn’t have a specific break fee clause, or if the landlord incurs costs while finding a new tenant, you may be charged a re-letting fee. This fee covers the landlord’s cost of re-advertising the property and other expenses associated with finding a replacement tenant.

Re-letting fees are typically equivalent to one week’s rent, though this may vary depending on your lease agreement and the real estate agent involved.

If the landlord needs to advertise the property to find a new tenant, they may pass these costs onto you. Advertising fees can vary but are usually between $100 to $300 depending on the platforms used.

If you break your lease without finding a replacement tenant, you may still be liable for ongoing rent payments until the landlord finds someone new. This can be a significant cost, especially if the property remains vacant for an extended period.

Using Leaso.com to find a new tenant can help avoid this situation. The platform connects you with renters who are looking for lease transfers, allowing you to fill the vacancy quickly and stop paying rent sooner.

Not all situations require you to pay a break fee when ending your lease early. Under certain circumstances, NSW law allows tenants to terminate their lease without facing penalties. Let’s look at a few common scenarios where you can avoid paying a break fee.

If you become eligible for social housing or need to move into an aged care facility, NSW law permits you to break your lease early without paying a break fee. You’ll need to provide at least 14 days’ notice and submit the required documentation to your landlord.

If your rental property becomes uninhabitable due to a natural disaster, fire, or severe damage, you can terminate your lease without a break fee. This applies when the property is no longer safe or suitable for living.

In these cases, tenants are entitled to end their lease immediately, but they should notify the landlord as soon as possible and provide evidence of the property’s condition (such as photos or reports from a building inspector).

If your landlord fails to meet their legal obligations—such as carrying out essential repairs or maintaining the property—you may be entitled to break your lease without penalty. In such cases, tenants must provide 14 days’ notice and may need to apply to the NSW Civil and Administrative Tribunal (NCAT) if the landlord does not agree to the termination.

Tenants experiencing significant financial hardship may apply to NCAT to terminate their lease early without paying a break fee. This process requires proof of hardship, such as loss of employment or a medical emergency, and decisions are made on a case-by-case basis.

If you don’t qualify for a break fee waiver, there are still ways to minimise the financial impact of breaking your lease. The key to reducing costs is finding a new tenant quickly, which ensures that you’re no longer responsible for rent or additional fees.

One of the most effective ways to reduce the cost of breaking a lease is by using Leaso.com. This platform connects renters looking to exit their leases with those searching for new rental opportunities.

Here’s how Leaso.com can help:

In some cases, landlords may be open to negotiation if you help them find a replacement tenant. If your landlord agrees to a quick lease transfer through Leaso.com, you may be able to avoid or reduce the break fee.

If you’re nearing the end of your lease, a lease transfer can be an ideal solution. This involves finding someone to take over the remainder of your lease rather than ending it early. Lease transfers are often more appealing to landlords because they don’t result in a vacant property, and using Leaso.com can make this process smooth and efficient.

If you're unable to pay the break fee or other costs associated with ending your lease early, it’s important to communicate with your landlord as soon as possible. Here’s what could happen if you don’t fulfil your financial obligations:

If you leave the property without paying the required break fee or finding a replacement tenant, you may continue to be liable for rent payments until a new tenant is found. This could result in weeks or even months of additional rent, depending on how long the property remains vacant.

In extreme cases, landlords may pursue legal action to recover unpaid rent or break fees. This could involve taking your case to NCAT or, in some situations, pursuing you for compensation through the courts.

Failing to meet your lease obligations can lead to a poor rental history, making it more difficult to secure a new rental property in the future. Landlords and property managers often report breaches to tenancy databases, which can affect your ability to find new housing.

To break your lease legally and avoid unnecessary penalties, it’s important to follow the correct procedures as outlined in the Residential Tenancies Act 2010 (NSW). Here’s a step-by-step guide to ensure a smooth process:

Start by reviewing your lease agreement to understand the specific terms and conditions for breaking your lease early. This will outline any break fees, notice periods, or other financial obligations.

Next, provide written notice to your landlord or property manager. In most cases, NSW law requires tenants to give at least 14 days’ notice before vacating a fixed-term lease or breaking it early.

Make sure your notice includes the following:

To avoid paying ongoing rent or re-letting fees, consider finding a replacement tenant through Leaso.com. The platform simplifies the process of transferring your lease, making it easier to fill the vacancy quickly and reduce financial strain.

If your lease includes a break fee, make sure to arrange payment with your landlord. If you’ve successfully found a replacement tenant through Leaso.com, your landlord may waive or reduce the fee.

Before vacating, ensure that you’ve completed a final property inspection with your landlord and returned the property in good condition. This will help ensure that your bond is returned in full and prevent any disputes over property damage.

Breaking a lease in NSW doesn’t have to be a costly or stressful experience. By using Leaso.com, you can find a new tenant quickly and avoid many of the financial pitfalls that come with early lease termination. Here’s why Leaso.com is the best platform for lease transfers:

Breaking a lease in NSW can come with various costs, but by understanding your obligations and using Leaso.com to find a replacement tenant, you can minimise those expenses and ensure a smooth transition out of your rental agreement. Whether you’re dealing with a fixed-term or periodic lease, proper planning and the right tools can save you both time and money.