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

Explore the best legal reasons to break a lease in Victoria and avoid penalties, and how Leaso.com can help you exit smoothly.

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Written by Leaso
Updated over 7 months ago

Breaking a lease in Victoria is a serious decision, and having a valid reason is key to avoiding penalties. The Residential Tenancies Act 1997 (VIC) outlines specific situations where tenants can legally end a lease early without facing financial consequences.

In this article, we’ll explore these valid reasons, commonly referred to as “excuses” for breaking a lease, and how Leaso.com can help streamline the process of finding a replacement tenant to save you from extra costs.


Valid Legal Reasons to Break a Lease in Victoria

If you want to break a lease in Victoria, certain situations allow you to do so without paying break fees or facing legal penalties. These valid reasons include circumstances that make it unreasonable for the tenant to continue their tenancy. Here’s a breakdown of those situations:

1. The Property Is Uninhabitable

If your rental property becomes uninhabitable due to significant damage, such as fire, flooding, or another natural disaster, you can legally break your lease without facing penalties. Victorian law requires landlords to maintain the property in a safe and liveable condition, and failure to do so gives tenants the right to terminate the lease. To break your lease under this excuse, you must provide documented evidence of the damage and notify your landlord in writing​.

2. Family Violence

Victims of family violence have the right to break their lease early without penalty under Victorian law. If you or someone in your household is experiencing family violence, you can apply to the Victorian Civil and Administrative Tribunal (VCAT) for an order to terminate the lease. Once granted, you can vacate the property immediately, and your lease will be terminated without any financial liability​.

3. Landlord Breach of Agreement

A common excuse for breaking a lease is if your landlord fails to meet their obligations. If your landlord does not carry out essential repairs, enters your property without proper notice, or otherwise breaches the lease agreement, you have the right to terminate the lease. In this case, you will need to provide written notice and evidence of the breach before applying to VCAT for lease termination​.


Financial Hardship as an Excuse to Break a Lease

In some cases, tenants can apply to VCAT to terminate their lease due to severe financial hardship. If continuing the lease would cause significant financial difficulty due to job loss, unexpected medical bills, or another unforeseen circumstance, VCAT may approve your request to end the lease early without penalty. However, you must provide substantial evidence of your financial situation, and each case is assessed individually by the tribunal​.


Reduced Notice for Special Circumstances

In Victoria, certain personal circumstances allow tenants to break their lease early with a reduced notice period. These situations include:

1. Moving to Aged Care or Social Housing

Tenants moving into aged care or social housing can provide 14 days’ notice to terminate their lease early without facing penalties. This provision ensures that vulnerable individuals are not burdened by ongoing lease obligations. You will need to provide written evidence of your acceptance into a social housing or aged care facility to qualify​.

2. Property Sale

If the landlord intends to sell the property, and you were not informed about the sale at the time of signing the lease, you may have grounds to break the lease early. In such cases, tenants are typically given a 60-day notice to vacate once the property is sold, but this can vary depending on the lease agreement​.


Finding a Replacement Tenant to Avoid Penalties

Even if your reason for breaking a lease does not fall under one of the legal exceptions, you can still avoid paying hefty break fees by finding a replacement tenant. This can significantly reduce your financial liability, as landlords are often more lenient if a new tenant is ready to take over the lease immediately.

Use Leaso.com to Find a New Tenant

Leaso.com is the ideal platform to help you find a replacement tenant quickly, reducing the financial burden of breaking your lease. Leaso.com offers:

  • Property Advertising: Easily create a listing that highlights your property’s features and amenities, attracting potential tenants quickly.

  • Tenant Matching: The platform’s smart matching system pairs you with tenants who are actively looking for properties, ensuring a quick transition.

  • Simplified Process: Chat directly with interested tenants, schedule viewings, and finalise the lease transfer, all within the platform.

By using Leaso.com, you can significantly reduce or eliminate your liability for break fees, making the lease transition smooth for both you and your landlord​.


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

If you break a lease without providing a valid reason or following the proper legal process, you could face significant consequences, including:

1. Paying Rent Until a New Tenant Is Found

If you vacate the property without finding a new tenant, you may still be responsible for paying rent until the landlord secures a replacement. This could mean weeks or months of rent payments after you’ve already moved out​.

2. Re-letting and Advertising Fees

Landlords are legally allowed to charge re-letting fees to cover the costs of finding a new tenant. These fees can include advertising costs and agent fees, which could total one to two weeks' rent​.

3. Damaged Rental History

Tenants who break their lease without following the correct procedures risk having their breach reported to tenancy databases, which can damage their rental history. This could make it harder to rent another property in the future​.


How Leaso.com Helps You Break a Lease Smoothly

When breaking a lease, using Leaso.com can help you avoid penalties by quickly finding a new tenant. Here’s why Leaso.com is the best option:

  • Easy Property Listings: Create a detailed and attractive listing for your rental property, helping you attract tenants who are ready to move in.

  • Smart Matching: Leaso.com’s technology connects you with tenants searching for leases in your area, reducing the time your property remains vacant.

  • Seamless Communication: You can chat with potential tenants, schedule viewings, and finalise the lease transfer, all within the platform.

Using Leaso.com can help you minimise the financial impact of breaking a lease and ensure a smooth exit​.


Conclusion

Breaking a lease in Victoria can be a complicated process, but knowing the valid reasons and understanding your rights can help you avoid penalties. Whether you’re facing a landlord breach, financial hardship, or another situation, following the legal process and using tools like Leaso.com to find a replacement tenant will make the transition smoother. By taking the right steps, you can ensure a cost-effective exit from your lease and avoid unnecessary complications.

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