What happens now your tenant is lease breaking.

Break lease. 

Be aware your tenants are breaking there lease.  As a Coral Sea Landlord you will have landlords insurance. Be prepared for a claim to be lodged to recover lost funds.


Who is responsible?


The tenant is still responsible for the general tenancy agreement they have signed. If the tenant does not continue to pay rent  a notice to remedy breach will be issued, if not rectified a notice to leave will be issued.  Legal proceedings will begin and also an insurance claim will be started.

“A tenancy agreement is a legally binding document. When a tenant signs the agreement, they agreed to be responsible for paying the rent until the end date on the tenancy agreement. If they break the tenancy agreement (for example, if they decide to leave during a fixed term agreement or if the lessor/agent asks them to leave because they have breached the agreement), they may still be legally responsible for paying the rent until another tenant can be found to  occupy the premises or until the tenancy end and are liable for all other costs.”


Any rent monies owing between current tenant moving out and new tenants lease beginning remains the tenants responsibility and must be paid consistently as per their lease agreement.

 Tenant moves out and stops paying.

If a tenant moves out and stops paying the bond only covers a certain amount.



Even though a tenant is breaking their lease, they still must give notice in writing. The only difference is the is no minimum time frame the tenants must give. ( A minimum of 14 days notice must be given when a tenant vacates at the expiry of their lease agreement. 


The tenant continues to pay rent, what other costs are there?


 The tenant must pay a break lease fee equals 1 weeks rent +GST, this payment is the same as a letting that an owner would pay at the beginning of a new tenancy. Tenants also must pay for all advertising costs.

The only time it would ever cost you as the owner is if we have done the following.

  • Improved the length of your current lease by an sufficent amount. ( got a further 6 or 12 month extension) 
  • Improved the amount of rent you are current collecting. 


When is an owner charged:

Most break leases are at no cost to the owner unless we have made an improvement to the lease.

What improvements you ask?

  • Extending the current lease by a further 6 or 12 months. ( Renewal fees incur)
  • If we have increased the rental amount being received. ( Renewal fees incur)
  • If Pro photos are arranged during the time the current tenants are vacating. ( Pro Photos costs incur)

Who gets the bond:


When a tenant breaks their lease, the bond is still held in Trust by the RTA.  The bond is only ever dispersed whether directly to the tenant or to us for work carried  out when a new tenant has entered in to a new tenancy agreement.

Tenants  are required to return the property to Coral Sea Property Services fully cleaned including having the carpets and curtains professionally cleaned.

  • Tenants are responsible for rent at the property until a new tenant has been found and a new General Tenancy Agreement has commenced or until their current General Tenancy agreement has expired, whichever comes first.
  • Tenants are responsible for advertising costs of the property. Advertising costs need to be paid upfront in order to start advertising the property.
  • All lease break fees and charges must be paid before we can begin start the lease break procedure and before we can begin advertising the property.