Break Lease compensation
For a tenant to break a lease they must compensate the owner for out of pocket costs due to the tenant moving out earlier than agreed.
The Individual States and Territories in Australia have specific rules about calculating the compensation payable to the homeowner (see below) however as a general guide this is what it might look like:
Compensation (general guide)
All states except NSW
- $359 advertising fee
- $199 re-advertising fee
- $160 professional screening feature fee
- Continue to pay rent until new tenants move in or until the lease end date
NSW
Mandatory break fees may apply which is payable based on the stage of the agreement.
The set fee payable is:
- 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 weeks rent if 75 per cent or more of the agreement has expired.
Break lease agreements are handled inside Cubbi on a case by case scenario based on the general guidelines above, state legislation (see below) and any negotiations between homeowner and renter.
Note: Cubbi does not request a letting fee of 1-2 weeks rent as compensation which is charged by many real estate agents and varies from state to state (according to legislation and percentage of lease remaining).