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Breaking it Gently: Tips for Early Termination of a Rental Agreement
Despite your best intentions when signing a rental property agreement, circumstances change,
and there’s sometimes a need to break the agreement early. Your right to do this is part of the
Residential Tenancies Act. The experts at Focus Property Management believe you can make
this a simple and relatively painless process by understanding the requirements and
communicating clearly with your landlord or agent.

Know Your Rights

As a tenant, you have a right to terminate your rental agreement if your landlord or agent has
not met his/her obligations as set out in the agreement. An example of this might be that the
property is not habitable (for reasons beyond your control).

There are also provisions for you to request termination of your rental agreement if you are
suffering ‘undue hardship’; for example, you might have lost your job and can no longer afford
the rent. You are also able to terminate an agreement for ‘extraordinary’ reasons, such as
needing to move away due to a domestic violence problem.

Simple Steps to Successful Termination

Whatever the reason for needing to break your rental agreement, you should follow the
prescribed process carefully. That way, you will experience a minimum of stress in what might
already be a stressful situation, when dealing with the Best Sydney Property Management real
estate agency.

The first step is always to notify your landlord or his agent in writing. To do this, you must
complete a termination notice in writing. This form may not be emailed, so you should either
send via fax, post or hand-deliver it to the landlord or agent. You should give as much notice as
possible, and there are minimum notice periods specified, depending on the reasons for your
termination.

If the landlord or agent agrees, they will do this in writing, and you should agree a date to move
out, and return your keys. If they do not agree, you still have the right to end your tenancy by
moving out and returning your keys. You should stop paying rent on the day you leave.

Know Your Responsibilities

Unless the property has been damaged by fire, flood or similar event, you should leave it in the
best possible condition, and invite the landlord or agent to inspect it. There should be a signed
final condition report and you should obtain a copy of this. This is important evidence that you
have left the property in good condition.

There may be a ‘break fee’, either specified in the original agreement, or imposed when you
give notice. You can try to negotiate a lower amount if this will incur undue hardship. As with all
these matters, the better your communication with your landlord or agent, the better your
chance of settling this amicably. There is a tribunal where disputes are settled, but you should
attempt to settle without this final step.

Remember that you may be liable to pay rent on the property until the end of the agreement
term. Therefore, it is important that you follow processes carefully and work cooperatively with
the landlord or agent as far as possible. Then, if you have to take the next step of enlisting help
from the Tenants Advice and Advocacy Service, you will be able to prove that you have worked
as far as possible within the rules. For more information on successfully terminating a rental
agreement, click here.

                   http://www.focuspropertymanagement.com.au/

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Breaking it Gently: Tips for Early Termination of a Rental Agreement

  • 1. Breaking it Gently: Tips for Early Termination of a Rental Agreement Despite your best intentions when signing a rental property agreement, circumstances change, and there’s sometimes a need to break the agreement early. Your right to do this is part of the Residential Tenancies Act. The experts at Focus Property Management believe you can make this a simple and relatively painless process by understanding the requirements and communicating clearly with your landlord or agent. Know Your Rights As a tenant, you have a right to terminate your rental agreement if your landlord or agent has not met his/her obligations as set out in the agreement. An example of this might be that the property is not habitable (for reasons beyond your control). There are also provisions for you to request termination of your rental agreement if you are suffering ‘undue hardship’; for example, you might have lost your job and can no longer afford the rent. You are also able to terminate an agreement for ‘extraordinary’ reasons, such as needing to move away due to a domestic violence problem. Simple Steps to Successful Termination Whatever the reason for needing to break your rental agreement, you should follow the prescribed process carefully. That way, you will experience a minimum of stress in what might already be a stressful situation, when dealing with the Best Sydney Property Management real estate agency. The first step is always to notify your landlord or his agent in writing. To do this, you must complete a termination notice in writing. This form may not be emailed, so you should either send via fax, post or hand-deliver it to the landlord or agent. You should give as much notice as possible, and there are minimum notice periods specified, depending on the reasons for your termination. If the landlord or agent agrees, they will do this in writing, and you should agree a date to move out, and return your keys. If they do not agree, you still have the right to end your tenancy by moving out and returning your keys. You should stop paying rent on the day you leave. Know Your Responsibilities Unless the property has been damaged by fire, flood or similar event, you should leave it in the best possible condition, and invite the landlord or agent to inspect it. There should be a signed final condition report and you should obtain a copy of this. This is important evidence that you have left the property in good condition. There may be a ‘break fee’, either specified in the original agreement, or imposed when you give notice. You can try to negotiate a lower amount if this will incur undue hardship. As with all these matters, the better your communication with your landlord or agent, the better your
  • 2. chance of settling this amicably. There is a tribunal where disputes are settled, but you should attempt to settle without this final step. Remember that you may be liable to pay rent on the property until the end of the agreement term. Therefore, it is important that you follow processes carefully and work cooperatively with the landlord or agent as far as possible. Then, if you have to take the next step of enlisting help from the Tenants Advice and Advocacy Service, you will be able to prove that you have worked as far as possible within the rules. For more information on successfully terminating a rental agreement, click here. http://www.focuspropertymanagement.com.au/