Ending a tenancy
Breaking a lease and reletting costs
A renter who leaves a fixed term early may owe reletting costs, but the current calculation is capped and the owner or agent must take reasonable steps to reduce the loss.
Key facts
- Newer agreements use a statutory reletting-cost calculation
- For terms under 3 years, the cap steps down from 4 to 1 weeks' rent
- Rent until a replacement begins can be the lower amount
- The owner or agent must mitigate the loss
First identify which rules apply
For fixed-term agreements entered into on or after 30 September 2024 and lasting under three years, the stated cap depends on how much of the term had expired when the renter left: four, three, two or one week's rent.
The actual reletting amount is the applicable cap or the rent payable until a new renter moves in, whichever is less. Outstanding rent, utilities or tenant-caused damage are separate issues and need their own evidence.
The loss must be reduced
The property manager or owner must take reasonable steps to mitigate the loss. Keep the date notice was given, the handover date, advertising dates, inspection history and any information showing when a replacement tenancy began.
Ask for an itemised calculation and the date the property was relet. Do not accept a vague administration fee that is not tied to the current RTA calculation.
Try to reach a written agreement
A mutually agreed end date or payment arrangement can reduce uncertainty, but the details should be in writing and signed by the relevant parties. Read any release wording before agreeing.
If the amount remains disputed, self-resolution can be followed by the RTA process and, where unresolved, QCAT. Bond and tribunal deadlines can be short, so act on every notice as soon as it arrives.
First identify which calculation applies
The statutory tier calculation applies to fixed-term agreements entered into on or after 30 September 2024. Agreements made earlier can continue under a compliant older term about reasonable reletting costs. Terms longer than three years use a different formula. Find the agreement date, original term, weekly rent, vacate date and replacement-tenancy start date before trying to estimate anything.
Reletting costs are not a catch-all bill. Unpaid rent, utility charges and alleged damage are separate amounts that need their own basis and evidence. A special term cannot override the statutory calculation for an agreement covered by the newer rules.
The four tiers for an agreement under three years
For a covered agreement under three years, the cap is four weeks' rent when less than 25% of the term has expired, three weeks from 25% to less than 50%, two weeks from 50% to less than 75%, and one week once 75% or more has expired. Work out the percentage using the full agreed term and the point the renter vacates.
The tier is only one side of the calculation. The amount is the lesser of that cap and the rent payable until a replacement tenant or resident moves in. If the property is relet quickly, the actual rent gap can be much smaller than the tier amount.
Worked examples at $500 a week
If a 12-month agreement ends after two months, less than 25% has expired and the tier cap is four weeks, or $2,000. At five months, the three-week cap is $1,500. At seven months, the two-week cap is $1,000. At nine months, 75% has expired and the one-week cap is $500.
Now apply the lesser-amount rule. If the property in the first example is relet after five days, the rent gap is about five days rather than four full weeks, so the smaller amount controls. Ask for the replacement start date and calculation instead of accepting an invoice that automatically charges the maximum tier.
The duty to reduce the loss
The property manager or owner must take reasonable steps to mitigate the loss. Relevant evidence can include when the property was advertised, the asking rent, inspection availability, applications and the date a new agreement began. A renter should also cooperate with reasonable access and return clear possession and keys on the agreed day.
Mitigation does not guarantee immediate reletting, and a slower result is not automatically unreasonable. The practical question is whether sensible steps were taken. Keep listings, proposed inspection times and correspondence if the calculation later becomes disputed.
Agreements longer than three years
For a covered fixed term longer than three years, the RTA describes a different comparison: one month's rent for each 12-month period remaining, capped at six months, versus rent until a new agreement begins. The lower result applies. Because long agreements and partial years can be complex, use the current RTA guidance or get advice before accepting a number.
For an older agreement entered into before 30 September 2024, read the actual special term and the previous statutory framework. Do not retroactively apply the four-tier table simply because the tenancy ends after the reform date.
Before agreeing to a final amount
Ask for a written statement showing the agreement category, percentage elapsed, weekly rent, tier cap, actual vacancy period, replacement start date and any other separately claimed amounts. Compare that statement with the ledger and bond claim. Pay or propose payment only after you can see how the number was reached.
If the parties cannot agree, a bond claim can enter the RTA dispute process. Unresolved matters may proceed to QCAT after a Notice of unresolved dispute. Keep the calculation focused: a disagreement about reletting costs should not obscure an unrelated dispute about property condition or utilities.
Primary source checked
RTA — Reletting costs