Minimum Notice Period
I'm a new parThe duration of the notice period depends on the type of agreement and the reasons behind the termination. These notice periods are thoughtfully designed to provide ample time for tenants to find a new rental property and for landlords to secure a new tenant. In some situations, the landlord and tenant may mutually agree to end the tenancy at any time without adhering to the standard notice periods.
Terminating a Fixed-Term Agreement Early When a tenant signs a fixed-term agreement, they commit to staying for the entire duration specified in the contract. However, if a tenant wishes to move out before the agreed term ends, there may be associated costs involved. In some exceptional circumstances, a tenant may end a fixed-term agreement without incurring penalties, but this needs to be discussed with the landlord.
If a tenant needs to terminate a fixed-term agreement early, they should inform the landlord as early as possible and cooperate in showcasing the property to potential new tenants, making the transition smoother for all parties involved.agraph block.
For Agreements of Three Years or Less
In cases where the agreement lasts three years or less, mandatory break fees might apply. These fees act as penalties that tenants agree to pay if they move out before the fixed term concludes. The break fee's amount is determined based on the stage of the agreement at the time of termination:
Four weeks' rent if less than 25 per cent of the agreement has expired.
Three weeks' rent if 25 per cent or more but less than 50 per cent of the agreement has expired.
Two weeks' rent if 50 per cent or more but less than 75 per cent of the agreement has expired.
One week's rent if 75 per cent or more of the agreement has expired.
For Agreements Exceeding 3 Years
If the tenancy agreement extends beyond three years, the landlord may seek compensation by applying to the NSW Civil and Administrative Tribunal (the Tribunal). The compensation sought may include loss of rent, advertising costs, and a letting fee if the landlord engaged an agent. The landlord or agent may negotiate the compensation amount with the tenant. If an agreement cannot be reached, the landlord can claim compensation from the bond or apply to the Tribunal for an order requiring the tenant to pay a specified amount of compensation.
To secure compensation successfully, the landlord needs to demonstrate the reasonable steps taken to minimize their losses, such as promptly advertising the property for new tenants.