RentingOnRecord

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Break lease

39 established claims - 13 refused by the grounding gate

Documented position22

What the body that runs or defines the thing says in its own documentation.

Ending a fixed-term lease early without a legally valid reason or VCAT order is what Tenants Victoria calls breaking your lease.

other
1 quote from 1 source
If you end your fixed-term lease early without a legally valid reason or VCAT order, or you do not follow the rules when ending your fixed-term lease, you are ‘breaking’ your lease.

If a Victorian renter is past the end of their first fixed-term lease in a property, the landlord cannot claim…

  • advertising costs to find a new renter.
  • a re-letting fee to find a new renter.
other
1 quote from 1 source
If you are already past the end of your first fixed-term lease in that property, the landlord cannot claim advertising costs or a re-letting fee to find a new renter
  • A Victorian landlord claiming lease-break costs must keep their losses to a minimum.
  • The requirement that a Victorian landlord claiming lease-break costs keep their losses to a minimum is known as mitigating their losses.
other
1 quote from 1 source
The landlord must keep their losses to a minimum, also known as ‘mitigating’ their losses.

In Victoria, a fixed-term lease that is about to expire automatically turns into a periodic month-by-month lease once the fixed term ends.

other
1 quote from 1 source
In Victoria, when a fixed-term lease is about to expire it will automatically turn into a periodic (month-by-month) lease once the fixed term ends. You do not have to move out just because your fixed term lease is about to expire

Where a Victorian lease was ended early for reasons such as a new job opportunity, the compensation awarded may be higher.

other
1 quote from 1 source
However, if the lease was ended early for reasons such as a new job opportunity, the compensation awarded may be higher.

VCAT considers how much notice was given to the landlord when deciding lease-break compensation.

other
1 quote from 1 source
VCAT also considers factors such as how much notice was given to the landlord and what efforts they made to re-let the property before the hearing.

When a renter breaks a lease, VCAT may find that the outgoing renter should not pay compensation costs if the landlord or agent puts up the rent.

other
1 quote from 1 source
If the landlord or agent does anything to make it harder to find a new renter, such as putting up the rent, or they do not make an effort to find a new renter, or they unreasonably refuse a new renter that you have found, VCAT may find they did not take reasonable steps and you should not pay those compensation costs.

In most instances, breaking a lease now requires a Victorian rental provider ending a rental agreement to give the renter 90 days notice.

medium confidenceother
1 quote from 1 source
In most instances, they must give you 90 days’ notice
  • Victorian renters do not have to pay a penalty for breaking a rental agreement.
  • Victorian renters have to cover certain costs when breaking a rental agreement.
other
1 quote from 1 source
Renters do not have to pay a penalty for breaking the agreement, but they do have to cover certain costs so the rental provider doesn’t lose money when the agreement is broken.

For a break lease with a fixed-term agreement longer than 5 years, VCAT cannot order compensation of more than one month's rent for every 12 months remaining on the agreement.

other
1 quote from 1 source
For fixed-term agreements that are longer than 5 years, VCAT cannot order the compensation of more than one month’s rent for every 12 months remaining on the agreement.
  • The law does not define exactly what reasonable costs are for breaking a Victorian rental agreement.
  • Disagreements about reasonable costs for breaking a Victorian rental agreement can be taken to VCAT.
other
1 quote from 1 source
Reasonable costs means costs that most people would think are fair. The law does not define exactly what reasonable costs are, so if people cannot agree what is reasonable, they can apply to VCAT to make the decision for them.

Practical effect6

What is observed to happen in practice, as distinct from what is documented.

In cases involving family violence, VCAT often awards little or no compensation to the landlord for a lease break.

other
1 quote from 1 source
In cases involving family violence, VCAT often awards little or no compensation to the landlord.

VCAT considers what efforts the landlord made to re-let the property before the hearing when deciding lease-break compensation.

other
1 quote from 1 source
VCAT also considers factors such as how much notice was given to the landlord and what efforts they made to re-let the property before the hearing.

When a renter breaks a lease, VCAT may find that…

  • a landlord or agent who puts up the rent did not take reasonable steps.
  • a landlord or agent who does not make an effort to find a new renter did not take reasonable steps.
  • the outgoing renter should not pay compensation costs if the landlord or agent does not make an effort to find a new renter.
other
1 quote from 1 source
If the landlord or agent does anything to make it harder to find a new renter, such as putting up the rent, or they do not make an effort to find a new renter, or they unreasonably refuse a new renter that you have found, VCAT may find they did not take reasonable steps and you should not pay those compensation costs.

Changed on1

A dated change. This is where advice quietly stops being true.

Disputed between sources4

Sources that do not agree, presented without picking a winner.

  • Consumer Affairs Victoria states a renter may have to cover reasonable costs paid to re-advertise the property.
  • Tenants Victoria states lease-break costs are not the costs to find or advertise to a new renter.
other
2 quotes from 2 sources
The renter may have to cover any reasonable costs that the rental provider or agent has paid to re-advertise the property.
Lease-break costs are meant to compensate the landlord for expenses they paid in renting the property to you, not the costs to find or advertise to a new renter or to prepare a new lease.

Landlord Wise states advertising paid to find a replacement renter may be recovered from the outgoing renter.

other
2 quotes from 2 sources
If you paid to advertise the property to find a replacement renter, the renter who broke the agreement may be required to cover those costs — but only reasonable costs.
Reasonable advertising costs that were paid to find you, not paid to find the new renter.

Tenants Victoria states that the re-letting fee must be based on the fee charged for preparing the outgoing renter's lease.

medium confidenceother
2 quotes from 2 sources
Most real estate agents charge rental providers a fee to find a new renter for their property after the old renter leaves. This is called a re-letting fee.
This must be based on the fee that the agent charged the landlord for preparing your lease, not for preparing the lease of the new renter.

Repeated, with no primary source in reach6

Widely repeated in the field. Within the documents this sweep read, it traces only to other repetitions - which is a fact about our reading as well as about the idea, until each one has been searched for on its own.

Landlord Wise states that a renter who broke the agreement may be required to cover reasonable costs the rental provider paid to advertise the property to find a replacement renter.

other
1 quote from 1 source
If you paid to advertise the property to find a replacement renter, the renter who broke the agreement may be required to cover those costs — but only reasonable costs.

Landlord Wise states that clause 16.1 of the standard form rental agreement limits claimable rent foregone to no more than one month's rent for each year remaining on the agreement.

other
1 quote from 1 source
The standard form rental agreement (clause 16.1) limits the amount of rent foregone you can claim to no more than one month’s rent for each year remaining on the agreement.

Landlord Wise states that a self-managing Victorian rental provider who does not use an agent has no re-letting fee to recover.

other
1 quote from 1 source
If you self-manage your property and do not use an agent, there is no re-letting fee to recover.

Landlord Wise states that an unexplained flat early termination fee in a Victorian rental agreement is unenforceable.

other
1 quote from 1 source
An unexplained flat fee is unenforceable.

realestate.com.au states that in the traditional rental market…

  • standard leases are typically fixed at six or twelve months
  • moving or breaking a lease can be costly
other
1 quote from 1 source
This blend of short and mid-range commitments differs from the traditional rental market, where standard leases are typically fixed at six or twelve months, and where moving or breaking a lease can be costly.

Refused13

Claims the research produced that the grounding gate would not accept, with its reason. They are here because a site that only shows what passed gives you no way to judge whether the gate does anything.

Show what was refused

A landlord claiming lease-break costs that the renter disputes must now apply to Rental Dispute Resolution Victoria to resolve the issue.

Refused: The quote says the landlord must apply to RDRV to resolve 'the issue' but does not specify that the issue is lease-break costs disputed by the renter.

Unsupported: claiming lease-break costs that the renter disputes

What it rested on
The landlord will need to apply to Rental Dispute Resolution Victoria (RDRV) to resolve the issue. RDRV is a free service that helps resolve rental disputes without needing to go to a formal hearing at VCAT.

Tenants Victoria states only advertising costs paid to find a replacement renter can be claimed.

Refused: The Tenants Victoria quote says costs were 'paid to find you, not paid to find the new renter,' which contradicts the claim rather than supporting it.

Unsupported: Tenants Victoria states only advertising costs paid to find a replacement renter can be claimed

What it rested on
If you paid to advertise the property to find a replacement renter, the renter who broke the agreement may be required to cover those costs — but only reasonable costs.
Reasonable advertising costs that were paid to find you, not paid to find the new renter.

Consumer Affairs Victoria states that the re-letting fee payable is a proportion of the agent's fee to find a new renter.

Refused: The cited quotes describe a re-letting fee but neither states it is a proportion of the agent's fee to find a new renter.

Unsupported: the re-letting fee payable is a proportion of the agent's fee to find a new renter

What it rested on
Most real estate agents charge rental providers a fee to find a new renter for their property after the old renter leaves. This is called a re-letting fee.
This must be based on the fee that the agent charged the landlord for preparing your lease, not for preparing the lease of the new renter.

Breaking a lease (reduction or termination of a Victorian rental agreement because of hardship) is dealt with at section 91U of the Residential Tenancies Act 1997.

Refused: The quote names section 91U and the hardship ground but never identifies the Residential Tenancies Act 1997.

Unsupported: of the Residential Tenancies Act 1997

What it rested on
Section 91U – Reduction or termination because of hardship

A break lease involving termination of a Victorian rental agreement because of family or personal violence is dealt with at section 91V of the Residential Tenancies Act 1997.

Refused: The quote states Section 91V and its subject matter but does not identify the Residential Tenancies Act 1997.

Unsupported: of the Residential Tenancies Act 1997

What it rested on
Section 91V – Termination or creation because of family or personal violence

A break lease involving creation of a Victorian rental agreement because of family or personal violence is dealt with at section 91V of the Residential Tenancies Act 1997.

Refused: The quote only provides the section heading 'Section 91V – Termination or creation because of family or personal violence' and does not identify the Residential Tenancies Act 1997.

Unsupported: of the Residential Tenancies Act 1997

What it rested on
Section 91V – Termination or creation because of family or personal violence

A worked Tenants Victoria example puts the total pro-rata lease-break costs for a renter leaving 4 months early at $240.

Refused: The quote only shows $80 advertising plus $160 re-letting equals $240; it does not state the renter left 4 months early or that this is a pro-rata total.

Unsupported: for a renter leaving 4 months early

What it rested on
$80 (advertising costs) + $160 (re-letting fee) = $240

Breaking a rental agreement in Victoria happens when a renter or resident leaves the property without giving notice.

Refused: The quote says leaving without notice 'might be' breaking the rental agreement, not that it definitively happens.

Unsupported: happens when a renter or resident leaves the property without giving notice

What it rested on
If a renter leaves the property, room or site before their rental agreement ends or leaves without giving notice, they might be breaking their rental agreement.

Breaking a rental agreement in Victoria happens when a renter or resident leaves the property before the end of the rental agreement.

Refused: The cited quote only refers to a renter, not a resident, so that part of the claim is unsupported.

Unsupported: or resident

What it rested on
If a renter leaves the property, room or site before their rental agreement ends or leaves without giving notice, they might be breaking their rental agreement.

For breaking a lease, a Victorian rental provider can never ask for more than 6 months' rent as compensation on a fixed-term agreement longer than 5 years.

Refused: The quoted cap is general but does not mention fixed-term agreements longer than 5 years.

Unsupported: on a fixed-term agreement longer than 5 years

What it rested on
For example, if there are 3 years left on the agreement, the rental provider can ask for 3 months’ worth of rent. They can never ask for more than 6 months’ rent.

A Victorian renter who breaks a lease does not have to pay re-letting fees if the property is rented directly with the owner and not through a real estate agent.

Refused: The quote only mentions re-letting fees in that circumstance but does not state the renter does not have to pay them.

Unsupported: does not have to pay

What it rested on
re-letting fees if the property is rented directly with the owner and not through a real estate agent.

A Victorian renter experiencing severe hardship can apply to VCAT to break an agreement.

Refused: The quote says a renter 'experiencing difficulties' can apply, but does not state or clearly entail 'severe hardship'.

Unsupported: experiencing severe hardship

What it rested on
If a renter is experiencing difficulties, they can apply to VCAT to break an agreement without having to pay any costs.

Section 211A of the Residential Tenancies Act 1997 sets out further matters to be considered by the Tribunal in a break-lease dispute.

Refused: The quote names Section 211A and its further matters heading but does not state it is in the Residential Tenancies Act 1997.

Unsupported: Residential Tenancies Act 1997

What it rested on
Section 211A – Further matters to be considered by Tribunal