Answers to commonly asked break lease questions

As part of the REIQ Residential Property Management CPD program, practical and informative webinars have been recorded for property managers. Special guest speakers Michelle Lember, Senior Member and Acting Deputy President of Queensland Civil and Administrative Tribunal, and Lynn Smith, Senior Advisor – Education and Engagement at the Residential Tenancies Authority, address some of the commonly asked questions relating to the break lease process.

Access the full recordings via the links at the end of this article to obtain Type 1 and Type 2 CPD.

The term “break lease” is not defined in the Residential Tenancies and Rooming Accommodation Act 2008 or within the Act’s dictionary. In these circumstances, the tenant is ending the tenancy agreement early without grounds and is therefore breaching the agreement. Section 357A – Reletting Costs applies to tenancy agreements that include a term requiring the tenant to pay costs reasonably incurred by the lessor in reletting the premises.

Q: Is a tenant required to provide a Form 13 if they are “breaking their lease”?

A: Section 277 of the Residential Tenancies and Rooming Accommodation Act 2008 outlines the lawful ways a tenancy agreement may be ended and does not include early termination (commonly referred to as a “break lease”). Accordingly, ending a tenancy early without grounds constitutes a breach of the agreement.

Given this is a breach, the Act does not prescribe a specific notice format or notice period. While tenants may choose to use a Form 13 to advise of their intention to leave, the lessor or agent cannot require that this form be used.

Q: If a tenant is breaking lease are they required to give 14 days’ notice?

A: In addition to section 277, section 327 of the Residential Tenancies and Rooming Accommodation Act 2008 provides that the handover day must not be earlier than the minimum notice period prescribed in section 308. This requires at least 14 days’ notice after the notice is given to the lessor and cannot be before the end of a fixed term agreement.

However, these provisions relate to ending a tenancy on lawful grounds under the Act. As a “break lease” (early termination) is not a ground prescribed by the Act, there is no legislated notice period.

When considering the Form 13, a tenant would also be unable to select an appropriate ground, as the tenancy is not ending at the end of the fixed term and is not ending on any of the listed grounds. Accordingly, a lessor or agent cannot insist on 14 days’ notice where the tenancy is being ended without grounds under the Act.

Q: When can reletting costs be calculated?

A: It may not be possible to determine the reletting costs until the property has been relet. If the property is not relet within the period equivalent to the calculated reletting costs, the amount determined using the reletting cost formula will apply.

Q: Can an owner claim advertising costs in addition to reletting costs?

A: Reletting costs are limited to the lower of either the amount calculated using the RTA calculator or the rent payable between the tenant vacating (and returning the keys) and the commencement of a new tenancy, as outlined in section 357A of the Residential Tenancies and Rooming Accommodation Act 2008. These costs are intended to cover all expenses incurred by the lessor in reletting the property. The RTA has confirmed that advertising costs cannot be claimed separately in addition to the reletting costs calculated under this formula.

Q: Can an owner claim break lease fees if the property is not going to be re-let eg: they are moving into the property or selling?

A: Section 357A of the Residential Tenancies and Rooming Accommodation Act 2008 provides that reletting costs are limited to the lower of the reasonable costs incurred in reletting the premises or the rent payable from when the tenancy ends (tenant hands over the premises) until a new tenancy agreement commences.

If the owner elects not to relet the property, there is no measurable unused portion of the tenancy or rental period between the tenant vacating and a new tenancy commencing. As a result, reletting costs cannot be properly determined or claimed.

Further, under section 362 of the Act, the lessor or agent has an obligation to mitigate the tenant’s loss. This obligation cannot be met if reasonable steps are not taken to secure a new tenant, such as advertising the property promptly after the tenant vacates. Where the owner decides not to relet the premises, it becomes difficult to demonstrate that the tenant’s loss has been mitigated, which may affect any claim for reletting costs.

In these circumstances, the owner may choose to mutually agree with the tenant to terminate the tenancy and negotiate an appropriate compensation amount. Any agreed compensation should be fair and reasonable and must not be used to circumvent the legislative provisions relating to reletting costs.

If the parties can come to an agreement to end the tenancy on a specific date, then we would recommend you use Realworks EF018 to document this agreement.

Watch our related webinar recordings:

Type 1 CPD QLDCPD20250027: Mastering QCAT Hearing Processes for Real Estate Professionals

Find out more

Type 2 CPD QLDCPD20250015: Understanding the Rental Law Reforms in Queensland

Find out more

Read more about property management: QCAT update - Rent reduction claims.

Or refer to our property management articles.