Break lease – what it can cost you
Things have changed in the Perth rental market. Around this time last year Perth had a tight vacancy rate of 1.9 per cent. There was a lot of competition for places and, as a result, rental prices increased. Now, with 4000 rental properties on the market and a vacancy rate of 3.2 per cent, tenants are enjoying more choice. This has resulted in some tenants breaking their leases to find cheaper rentals.
If you’re considering breaking your lease, here are a few things to think about:
- A lease is a contract between two parties – tenant(s) and the property owner. Moving out of premises before the scheduled departure date is a breach of that contract.
- The owner of a rental property is entitled to be ‘no worse off’ as a result of a tenant breach. Under the Residential Tenancies Act, you may be liable for costs incurred from your break lease, including paying rental income for the property until it is re-let and paying any advertising costs for finding new tenants. These costs can add up, especially if it takes a long time to find new tenants.
- Property owners and property managers know that situations change and that break leases are part of the parcel. We’re here to help. If you’re considering an early termination of your lease, please get in touch with your property manager immediately. We are more than happy to discuss your options.