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What Is the Best Excuse to Break a Lease in Victoria?

Explore the valid reasons to break a lease in Victoria without penalty, and how you can navigate this process smoothly with Leaso.com

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Written by Leaso
Updated over 7 months ago

Breaking a lease in Victoria can be challenging, especially when it comes to finding the right reason to do so without facing penalties. The Residential Tenancies Act 1997 (VIC) outlines several valid reasons for early lease termination that allow tenants to exit their rental agreements without paying break fees. Whether you're dealing with a personal emergency, landlord breach, or other circumstances, understanding these legal grounds can save you both time and money.

In this article, we’ll cover the best excuses for breaking a lease in Victoria, your legal rights, and how Leaso.com can make the process easier by helping you find a new tenant.


Valid Reasons for Breaking a Lease in Victoria

In Victoria, tenants can break their lease early without incurring penalties if they meet certain legal conditions. These valid reasons fall under the Residential Tenancies Act 1997 (VIC) and typically protect tenants from financial liability in unforeseen situations.

1. Property Is Uninhabitable

If your rental property becomes uninhabitable due to a natural disaster, fire, or severe damage, you can legally break your lease without penalty. Under Victorian law, landlords are responsible for maintaining their properties in a safe and habitable condition. If the property is damaged beyond repair or poses health and safety risks, tenants are not required to remain on the premises.

In such cases, tenants must notify their landlord immediately and provide written notice of their intention to vacate. The notice must be accompanied by evidence, such as a report from a health inspector or emergency services, to substantiate the claim​.

2. Landlord Breach of Agreement

Tenants are legally allowed to break a lease if the landlord fails to meet their obligations under the rental agreement. This could include:

  • Failure to carry out essential repairs.

  • Violating privacy, such as entering the property without permission.

  • Failing to maintain the property to a liveable standard.

If your landlord breaches the terms of the agreement, you can apply to the Victorian Civil and Administrative Tribunal (VCAT) to terminate the lease early. You will need to provide 14 days' notice and evidence of the breach​​.

3. Moving to Aged Care or Social Housing

Tenants who are moving into social housing or an aged care facility can terminate their lease early without facing penalties. Victorian law allows for early termination in these cases to ensure that tenants facing life changes or health concerns are not burdened by ongoing lease obligations.

Tenants must provide 28 days’ notice in writing and evidence of their acceptance into a social housing program or aged care facility​.

4. Family Violence

Victims of family violence have the right to break their lease early without penalty under Victorian law. If you or a household member is facing violence, you can apply to VCAT for an order to terminate the lease.

Victims must provide evidence of the family violence, such as a court order or a letter from a professional service, to support their claim. Once approved, the tenant can vacate the property immediately, and the lease will be terminated without financial liability​.


Other Acceptable Excuses to Break a Lease in Victoria

While the legal grounds above provide strong protections, there are other valid excuses tenants can use to break a lease early. These situations are typically more circumstantial but are still recognised under Victorian law.

1. Severe Financial Hardship

If continuing the lease would cause undue financial hardship, you may be able to break your lease early. Tenants experiencing job loss, unexpected medical bills, or other financial difficulties can apply to VCAT for an early lease termination. However, you must provide evidence of your hardship and the impact it has on your ability to pay rent​​.

2. Landlord Intends to Sell the Property

If your landlord notifies you of their intention to sell the property, you may be able to end your lease early. This is especially applicable if the sale of the property was not disclosed at the time the lease was signed. Victorian law requires landlords to inform tenants of their intention to sell, and failure to do so gives tenants grounds to vacate without penalty​.


How to Provide Proper Notice When Breaking a Lease

Once you’ve identified a valid reason for breaking your lease, it’s essential to follow the correct process to avoid penalties. Here’s how to do it:

Step 1: Review Your Lease Agreement

Carefully review your lease agreement to ensure you understand the terms, notice periods, and any break fee clauses. Victorian leases often include details about the notice period required for early termination, and understanding this can help avoid unnecessary costs.

Step 2: Provide Written Notice

To legally break a lease in Victoria, tenants must provide written notice to their landlord or property manager. The notice must include:

  • Your name and contact information.

  • The address of the rental property.

  • The reason for terminating the lease (with evidence, if applicable).

  • The date you plan to vacate.

  • Your signature.

Make sure to send the notice via email or registered mail so there is proof of receipt​.

Step 3: Use Leaso.com to Find a New Tenant

If your reason for breaking the lease doesn’t fall under the legal exceptions, you can still avoid hefty break fees by finding a new tenant. Leaso.com is the perfect platform for this, offering you an easy way to connect with renters who are actively searching for properties.

Here’s how Leaso.com can help:

  • Advertise your property: Create a listing that showcases the best features of your rental and attracts renters quickly.

  • Match with verified tenants: Leaso.com’s smart matching system connects you with potential tenants who are ready to move in, minimising vacancy time.

  • Schedule viewings and communication: Chat directly with potential tenants, arrange viewings, and finalise the lease transfer—all through the platform.

By finding a new tenant quickly, you can reduce your financial liability and avoid paying break fees.


What Happens If You Break a Lease Without a Valid Reason?

Breaking a lease without following the correct legal process or providing a valid reason can result in serious consequences:

Ongoing Rent Payments

If you vacate the property without finding a replacement tenant or providing proper notice, you may still be liable for rent until a new tenant is found. This could mean weeks or even months of rent payments after you’ve already moved out​.

Re-letting Fees

Landlords can charge re-letting fees to cover the cost of finding a new tenant, which can range from one to two weeks' rent. These fees cover advertising and property management costs​.

Damage to Your Rental History

Landlords may report tenants who breach their lease agreements to tenancy databases. This could damage your rental history and make it more difficult to secure a rental property in the future​.


How Leaso.com Can Help You Break a Lease in Victoria

Breaking a lease in Victoria can be stressful, but Leaso.com makes the process easier by helping you find a new tenant quickly. Whether you’re facing a family emergency, a landlord breach, or simply need to relocate, Leaso.com offers a seamless solution.

Here’s why Leaso.com is the best platform:

  • Advertise your property: Showcase your rental’s best features and attract renters who are actively searching for lease transfers.

  • Connect with verified tenants: Leaso.com’s smart matching system connects you with tenants ready to move in, reducing vacancy times.

  • Avoid break fees: By finding a new tenant quickly, you can minimise or eliminate financial penalties.


Conclusion

Breaking a lease in Victoria doesn’t have to be a daunting experience. By understanding your legal rights and using tools like Leaso.com, you can navigate the process smoothly and avoid penalties. Whether your reason is legally protected or circumstantial, following the correct procedures and finding a replacement tenant can help ensure a successful lease termination.

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