
Breaking Fixed Term Lease
Fixed-term tenancies, as outlined in Section 66 of the Residential Tenancy Act 1986, are legally binding agreements for a specific period and cannot simply be terminated with notice. If a tenant wishes to break a fixed-term lease, they must first complete a request form detailing their reasons. Click will then consult with the property owner to determine whether the tenant may proceed with the break lease process. If the owner does not approve, the tenant must apply to the Tenancy Tribunal under Section 66, citing severe hardship. If the Tribunal determines that the tenant meets the hardship criteria, they may allow the lease to be shortened, typically requiring compensation to the landlord for any losses incurred.
If a break lease is approved, tenants will incur several costs, including an advertising fee of $380.00 plus GST and an administration fee averaging $800.00 plus GST. For tenants in shared accommodation, a fee of $165.00 plus GST is required upfront for each change of room application. The advertising fee must be paid before Click can begin the process of finding a suitable replacement tenant. Final advertising and administration costs will be calculated based on actual expenses and time spent on the process, with a full cost schedule available upon request.
Tenants who are released early from their lease must provide 2–3 working days of vacant possession to allow for an exit inspection, cleaning, property checks, and an entry inspection for the new tenant. They remain legally responsible for rent until the day before the new tenancy begins. Additional costs, such as smoke alarm checks or meth testing, may also apply depending on landlord requirements. Any new tenant must meet Click’s tenant criteria and receive owner approval before taking over the lease. Importantly, there is no guarantee that a lease break will be granted.