End of Lease Termination Conditions, South Australia

We are moving out of the renting property which we have rented for 5 years. Every year, we used to sign another 12 months fixed term tenancy agreement, with the current one due to expire in January, 2021.

My understanding of the tenancy legislation was that a 28 day’s notice period would suffice to terminate the agreement, even if it is a fixed term one. Therefore, we did provide the 28 day notice of us leaving.

But today, 10 days before we are supposed to move out, the landlord informed us:

‘your departure is treated as a lease break, and accordingly it is treated differently.
Under a lease break, there is a responsibility for the outgoing tenant to pay rent until a new tenant is found, and also to pay a portion of the advertising costs’

Obviously, that is not what I’ve expected and I asked for the reference for his statement. Also, I asked him to answer a couple of questions.

Specifically:

  • how long is it reasonable to pay the rent until you find a tenant (theoretically, as per your statement it may last till the next year)

  • and how much is 'a portion of the advertising costs' specifically?

While waiting for his reply, I wanted to check with Ozbargain community what the legislation says about this point, and what legislation is it, and if it is easily accessible for me to read and sight to the landlord if he is not quite right.

Thanks for all of your thoughts and references.

closed Comments

  • +1

    The Agent / Landlord is correct.

    Obviously, that is not what I’ve expected

    May I enquire what you did expect the response from the Landlord would be for a 9 month lease break?

    The only thing I am not sure of is if the Landlord is allowed to insist he tries to find another tenant at the current rate you are paying. I hope so, because the Landlord has done nothing wrong and shouldn't be negatively impacted in anyway.

    • -1

      I would want him to provide me with the reference to the existing terms and conditions of the contract or a legislative act. And so is the post about.

      • +2

        You signed a lease, the lease says you can't bail early without penalty.

        The onus is on you to prove otherwise, something the new rules/regulations won't cover you for.

        • -3

          The lease says nothing about the penalty. What would you say to that?

          • +4

            @mutnyi2001: Lol BS a lease says nothing about a penalty if you bail early. They all do, otherwise people would sign for 12 months and bail after 1 month.

          • @mutnyi2001: From the SACAT website:

            A tenant cannot end a fixed term lease early without being held responsible for costs related to reletting the property, unless the landlord/agent agrees not to claim these costs.

            If a tenant moves out of the property before the end of a fixed term agreement, they are breaking the lease and a landlord can claim costs for:

            • loss of rent until the property is relet
            • advertising
            • reletting – fee charged to the landlord by an agent

            You can find the formula for reletting and advertising fee here :

            Edit:
            If the rent needs to be reduced to relet the property quickly, the landlord can claim the difference in rent from the tenant up to the date their lease ends.

          • @mutnyi2001: read the act applicable to your state

            conditions/penalties are implied by law

  • Majority of the legislation is for people who have lost jobs/income due to COVID-19.

    Can you prove that you're leaving due to loss of a job or income, and are claiming hardship?

    I'm guessing you're moving out due to the new house being built?

    So again, have you suffered hardship due to COVID-19?

  • Depending on your state, the legislation is yet to pass. Hopefully you haven't shot yourself in the foot by giving notice just days before the law gets changed in your favour.

  • +3

    So what would have been your reaction/response if the landlord told you he wanted to cancel your lease which didn't legally expire until 2021?

    • -2

      I would want to see the legislation if he has the right to do so. And so is the post about.

      • So if you want to see the legislation that your think allows you to break your lease then I suggest you ask the landlords agent

      • Here is the legislation as interpreted by the SACAT.

  • A google search of your state (SA) government website gives this https://www.sa.gov.au/topics/housing/renting-and-letting/ren… for ending a fixed term lease early.

    Not that difficult.

    • -1

      Thanks. That is what I needed.

      • A tenant cannot end a fixed term lease early without being held responsible for costs related to reletting the property, unless the landlord/agent agrees not to claim these costs. Make sure any agreement not to claim costs is in writing.

        If a tenant moves out of the property before the end of a fixed term agreement, they are breaking the lease and a landlord can claim costs for:

        • loss of rent until the property is relet
        • advertising
        • reletting – fee charged to the landlord by an agent

        thread closed. It has always been like this

  • +1

    Have you ever read your tenancy agreement properly?

  • Compensating the landlord for breaking the is a standard clause SA lease documents. That is a document written by the SA Gov through the Office of Consumer & Business Services. You can only break a lease with 28days notice if its a periodic lease, however as you've been signing a new lease each & every year, this is not what you have. This is why you should always read paperwork when youre asked to sign something

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