Tenants breaking lease


Our IP is tenanted to a couple who are 6 months through a 12 month lease.

They have broken the lease as they are being transferred interstate for work. Note that they are both foreign nationals in the country for work (PM has copies of passports, DLs, other info etc).

The property will be available on the 15th November, the exact date the rent was supposed to go up by $20/week.

The PM has re-listed the property at the new rate (extra $20/week as mandated in the original lease) with a further increase by another $20/week after 6 months (this would have been the end of the original tenant's 12 month lease).

I think I am OK such that the tenant cannot claim we are re-advertising the property at a higher rate that they would have been paying (and thus claim that they do not have the pay rent until the property is re-let).

There is a 1 month bond in place, and I also have landlord's insurance. I have instructed the PM not to release bond until the property is re-let, to make sure that the tenants leave correct forwarding addresses, and that I am present at the final inspection.

As this is the first time I have had this occur, can wiser-souls provide me with any advice as to extra steps I should take to protect my position and ensure I am not left holding the bag?


When we have had a tenant break a lease, the new tenant has been signed up to the remainder of the broken lease. Then renewal is negotiated at that time. We asked if a longer lease could be arranged at the outset but were told by our PM that it was illegal.

By the sounds of it, you are asking the new tenant to commit to conditions beyond the broken lease. In this case you may find the departing tenant is not responsible for the rent while you find a tenant on different conditions.

Things may be different in different states. Your PM should know.
This happened to us in Sydney.

We advertised at a higher price as rentals were tight. Agent said we would lower it after 1 week. We got a tenant in the next weekend.
The existing tenant paid 1 weeks rent plus reletting fees. They were happy, so were we.

We just started a new lease at 12 months. It doesn't make sense to me to only have it until the end of lease. What if they only have 1 month to go?
It shouldn't matter to anyone else how long the lease is for as long as you get someone in so they are released from their lease.

A friend of mine had to break her lease a few years ago. Rental vacancies were high. She had to pay the difference between her rent and the new rent (which was lower).
QLD break lease

You did well - just make sure PM takes let fee from tenant.

They are ok to advertise at new rent - as this does not disadvantage outgoing tenants.

No reason to not have longer lease - good opportunity to sign new tenants for 12 months or more. Note: Leases can be for any period of time with start and end date - it is called Fixed term. Doesn't have to be 6 or 12 months exactly.

All the best.