What is a Break-Lease?
This is when you have a fixed-term lease that is not due to expire for some time and you wish to be relieved from your responsibilities for the lease, vacate the property, and someone else lease the property.
Leases can only be terminated under Section 60 of the Residential Tenancies Act. http://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/wa/consol_act/rta1987207/s60.html
In this section of the Act there is no reference to a Break-Lease and for good reason. Generally leases can only be terminated by:
- The Normal Way: The lease ends, required notice is given prior to the lease ending, the tenant moves out, a final inspection is conducted, outgoings, repairs, are all paid, the bond is disposed of.
- The Court Way: There is a dispute, such as you don't pay your rent or maintain the property, the lease gets terminated, you get lodged on tenancy databases.
- Mutual Agreement: By mutual agreement by Owner and Tenant, in writing, under Section 60. (g). This is where you can Break-Lease.
" (g) where the tenant delivers up vacant possession of the premises pursuant to an agreement in writing between the lessor and the tenant to terminate the residential tenancy agreement;"
There are 2 types of Break-Leases that CRASH Realty operates under
Within 4 weeks of your lease expiring
Here you can vacate early, pay all outgoings such as water consumption, carpet cleaning, repairs, maintaining the property under the lease for items such as lawns and gardens, and just forfeit your bond of 4 weeks rent to pay the remaining 4 weeks of your lease. There is no need to pay Break-Lease fees or advertising costs.
Over 4 weeks
This is where your remaining rent and outgoings will be higher than your bond. Here you need mutual agreement from the owner to terminate the lease. Any agreement is subject to Break-Lease Conditions and Break-Lease Fees.
Break-Lease Conditions and Fees
Section 60. (f) does not mention fees, this is because by mutual agreement it can be anything that is agreed to. Generally owners are happy to accept a Break-Lease provided there is no rent loss (no weeks where rent is not paid) and they do not incur any additional costs such as advertising and no additional fees such as re-letting fees.
- You sign and abide by our break-lease application form.
- Pay the break-lease costs detailed on the break-lease form
- You continue to pay rent until the property is re-let.
- You allow viewings on weekends, before and after work on weekdays.
- You keep the property neat, tidy, and presentable for these viewings.
There are 3 ways we can set the system up for inspections.
- You can receive 48 hours written notice (email) for every inspection. This limits your inspections to once every 3 days and on Saturdays.
- Treat as vacant, show any time 7 days a week. You may not get automatic notifications this way. Tip: you can save the ad as a favourite from your favourite advertising site and receive an email or app notification from them.
- Limit to a scheduled inspection regime. This option is not recommended as it limits your market as the property will not be shown at convenient or potentially convenient times for potential tenants and only shown on a schedule to you.
- Advertising $99
- Break-Lease fees $440
How to avoid fees
If you are moving from one of our properties to another of our properties, all break-lease fees are waived.