How Much Does It Cost to Break a Lease in Victoria?

Breaking a lease in Victoria can come with financial implications, especially if you're ending a fixed-term agreement early. Whether you're relocating for work, dealing with a change in personal circumstances, or simply need to exit your lease, understanding the associated costs will help you plan ahead.

This guide will explain the common costs of breaking a lease in Victoria, including break fees, advertising costs, and re-letting fees.

We’ll also introduce Leaso.com as an ideal platform to find a new tenant and potentially reduce or eliminate these fees.

When you break a fixed-term lease early in Victoria, there are several costs you may be required to pay under the Residential Tenancies Act 1997 (VIC). These costs are designed to compensate landlords for the financial loss of re-letting the property and the vacancy period.

A break fee is an amount tenants may need to pay for breaking a fixed-term lease early. This fee is generally outlined in your lease agreement and compensates the landlord for the inconvenience and loss of rental income. The standard break fees are:

If your lease agreement does not specify a break fee, the landlord may charge a re-letting fee. This fee covers the costs associated with finding a new tenant, such as:

These fees help cover the administrative work and marketing efforts necessary to fill the vacancy. Keep in mind that some landlords may opt to absorb these costs if a new tenant is found quickly​.

In some cases, if you leave the property before a replacement tenant is found, you may still be responsible for paying rent until the new tenant takes over. This is known as your ongoing liability, which could last for weeks or even months if the property remains vacant​.

There are specific situations in which Victorian tenants can legally break a lease early without paying a break fee. These circumstances typically arise from factors outside the tenant's control or when the property becomes uninhabitable.

If the property becomes uninhabitable due to natural disasters, fire, or other severe damage, tenants can break their lease without facing penalties. Victorian law requires landlords to provide safe, habitable premises, and failure to meet this obligation gives tenants the right to vacate without fees​.

Victims of family violence are protected under Victorian law and can break a lease without penalty. Tenants experiencing family violence can apply to the Victorian Civil and Administrative Tribunal (VCAT) for an order to terminate the lease early, and once approved, they are not liable for break fees​.

If your landlord breaches the lease agreement by failing to carry out essential repairs or violating your privacy, you may be able to terminate the lease without financial consequences. You’ll need to provide evidence of the breach and apply to VCAT for permission to vacate without a fee​.

Even if you don't qualify for the above exceptions, there are ways to reduce or avoid some of the costs associated with breaking a lease. Here are some key strategies:

One of the best ways to avoid ongoing rent payments and break fees is by finding a new tenant to take over your lease. Leaso.com is a fantastic platform that helps you quickly find renters who are looking for lease takeovers.

Here’s how Leaso.com can help:

By finding a new tenant quickly, you can avoid paying additional rent or re-letting fees​​.

In some cases, landlords may be open to waiving or reducing fees if you assist in finding a new tenant or help facilitate a smooth transition. Offering to cover minor expenses, such as cleaning or maintenance costs, might encourage your landlord to compromise on the break fees.

Even if you’re breaking the lease early, providing 28 days’ notice is essential. Victorian law requires tenants to provide this notice in writing, outlining the exact date they plan to vacate. Giving notice ensures that both parties have time to make arrangements, and it can prevent any unnecessary penalties​.

Failing to follow the proper legal process when breaking a lease can result in significant financial and legal consequences. Here’s what could happen if you don’t meet your obligations:

If you leave the property without finding a replacement tenant or without providing adequate notice, you may be liable for rent until the landlord finds a new tenant or until the end of the notice period. This can result in you paying rent for weeks or even months after you’ve vacated​.

Tenants who break their lease without following the correct process risk being reported to tenancy databases. This can make it difficult to secure a rental property in the future, as many landlords and real estate agents check these databases before approving tenants​.

In extreme cases, landlords may take legal action to recover unpaid rent or fees related to breaking the lease. This could lead to a VCAT hearing, where a tribunal may issue a ruling in favour of the landlord, requiring you to pay compensation​.

Breaking a lease doesn’t have to be a financially stressful experience if you use the right tools. Leaso.com is the leading platform for lease transfers, making it easier for tenants to exit their leases by connecting them with new renters.

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

Using Leaso.com can help you avoid ongoing rent payments, reduce break fees, and exit your lease smoothly.

Breaking a lease in Victoria comes with costs, but knowing your rights and using tools like Leaso.com can help you minimise those expenses. Whether you're facing a sudden life change or simply need to relocate, following the legal steps outlined in this guide will ensure a smooth and cost-effective exit from your lease.

By finding a replacement tenant quickly through Leaso.com, you can avoid hefty fees and ensure a seamless transition for both you and your landlord.