You've bought the place, and now the lease is in the way. Buying a home doesn't end your rental agreement. If you're still in a fixed term, there are 3 ways out: agree an early end date with the owner, use a legal ground that fits your situation, or pay the break-lease costs your state allows. In Queensland, most fixed terms under 3 years signed since 30 September 2024 cap the reletting cost at 1 to 4 weeks' rent. Other states work differently, so check your agreement date and your state's rule before you set a move date.
Filmed in 2021, before Queensland's reletting cost rules changed on 30 September 2024. Use the state-by-state rules and agreement dates in this guide to work out what applies now.
A fixed-term rental agreement sets an end date. Leaving before that date without a legal ground or an agreed early end can be a lease break.
You may have to pay compensation, but that does not always mean paying every week remaining on the lease. The rules may set a break fee or cap, or allow claims for particular costs. The agreement date and state or territory matter.
Tell the owner or agent in writing as soon as you can and ask for an itemised estimate under the rules that apply.
When can a tenancy end early?
There is no single national list of situations that end a tenancy immediately. Some laws allow early termination for specific reasons, such as family violence, an unsafe property, a serious breach or hardship. A notice, evidence or tribunal order may be required, and compensation can still be possible. A landlord’s breach, a tenant’s breach, a mortgagee notice or a tenant’s death does not automatically end every agreement without cost.
Before moving out, check the current rules for your state or territory and follow the required notice process. If you and the owner agree to an earlier end, record the date and any payment or bond arrangements in writing.
Buying a home does not remove the cost by itself. Your options are to negotiate an early end, use a legal ground that applies to your situation, or follow the ordinary break-lease rules for your agreement.
What are the steps for breaking my lease?
Step 1. Check your agreement and write to the owner or agent
Check whether your agreement is fixed-term or periodic, its end date, and any break-lease clause. Tell the owner or agent in writing that you want to leave early. Ask what steps and costs apply in your state or territory, and keep their reply.
In Queensland, a tenant who is breaking a fixed-term agreement can give a Notice of Intention to Leave (Form 13). Other states and territories use different forms and notice rules.
Give as much notice as you can, but do not assume that notice alone ends a fixed-term agreement.
Ask whether the owner will agree in writing to an earlier end date or approve a replacement tenant.
Keep a copy of the notice and proof that it was sent.
Queensland Form 13 only; other states and territories use different notices.
Step 2. Agree on the handover date and document the condition
Follow the date in a valid notice, written agreement or tribunal order. Giving a notice does not always let you stay or leave on the date you choose, so check that it is the right notice for your circumstances.
Before handing back the keys:
Compare the property with your entry condition report and check your state or territory’s cleaning standard. A professional cleaner is not automatically required everywhere.
Arrange pest treatment only if required by your agreement or the law that applies.
Leave the garden and outdoor areas in the condition required by your agreement and local law.
Take dated photos and keep copies of receipts and communications.
Clear condition records help if there is a disagreement about damage, cleaning or the bond. They do not remove any compensation that may be payable for ending a fixed term early.
If you clean the backyard, take a photo. You never know; there could be a storm overnight, and you could get blamed for something you didn’t do.
Queensland only: complete the exit condition report
For a Queensland general tenancy, use Form 14a to record the property’s condition at the end. Compare it with the entry report and keep photos. See the RTA’s exit condition report guidance.
Give the completed report to the property manager or owner when returning the keys. Other jurisdictions use different procedures.
Queensland only: request your bond refund
After the tenancy has ended, a tenant or managing party can request a refund from the RTA online or using Form 4. See the RTA’s current Form 4 guidance. If everyone agrees to the split, all parties on the paper form sign it. If everyone signs the same form, the RTA usually pays within 2 to 3 working days. If someone doesn't sign, the RTA sends them a notice and they have 14 days to dispute. Any disputed amount is held while that's worked out.
When does my tenancy agreement end?
Moving out and ending the agreement are not always the same thing. Your agreement ends under the applicable notice, written agreement, tribunal order or other legal ground. In Queensland, handing over vacant possession also affects when reletting costs are calculated. Check the rules that apply before assuming rent or compensation has stopped.
Queensland hardship applications through QCAT
If either party believes continuing the tenancy would cause excessive hardship, they can make an urgent application to QCAT. The person applying needs evidence. QCAT decides whether to end the agreement and can also order compensation, such as some lost rent or reletting costs. A hardship application does not guarantee a cost-free end.
Plan your move around settlement
Here's how I'd sequence it. Wait until your contract is unconditional, then give notice so the lease ends a week or two after settlement. That overlap costs a little rent, but it means you're not stuck if settlement moves. If you only have pre-approval, our guide explains what still needs to happen before the loan is formally approved. Ask your solicitor when you can safely commit to leaving, especially if the purchase still has conditions to meet.
There is no single break-lease fee for Australia. A claim may depend on your state or territory, agreement date, lease length and the terms in your agreement. It can include rent loss, advertising or reletting amounts, but the rules may cap these costs or limit which costs can be claimed. Do not rely on a quote until you know the rule that applies to your agreement.
For example, in Queensland, fixed-term agreements under 3 years entered into on or after 30 September 2024 use a reletting-cost formula based on how much of the term has passed. The tenant pays the lower of that formula amount and the rent up to when a replacement tenant moves in. No additional reletting costs can be added under this rule. Earlier agreements may be treated differently.
Queensland: reletting costs for eligible fixed terms under 3 years
How much of the term has passed?
Formula amount
Less than 25%
4 weeks of rent
25% to less than 50%
3 weeks of rent
50% to less than 75%
2 weeks of rent
75% or more
1 week of rent
This applies to fixed terms under 3 years entered into on or after 30 September 2024. You pay the lower of the formula amount and rent until a new tenant moves in. No extra reletting costs can be added under this rule. Unpaid rent, services and damage are separate. Use the RTA’s reletting costs calculator with your agreement dates.
Queensland example: how the cap can work
Suppose weekly rent is $500 and a fixed term of less than three years is 40% complete when the tenant hands back vacant possession. The formula amount is 3 weeks’ rent, or $1.5k. If a replacement tenant moves in after 10 days, rent for those 10 days is about $714. The lower amount is used, so the reletting cost would be about $714 under this example. This is an example of the Queensland rule, not a national estimate. Unpaid rent, services and damage are separate.
Before you agree to pay
Ask for an itemised calculation, the agreement clause or rule relied on, the relevant dates, and evidence for claimed advertising or other expenses. Whether the owner must take a particular step, and how a delay affects your liability, depends on the applicable law and facts.
Ways to keep the process moving
Write to the owner or agent as early as you can and keep a copy.
Ask whether they will agree to an end date or approve a replacement tenant, and get any agreement in writing.
Ask for a current itemised cost estimate and how the owner will meet any duty to limit their loss.
Keep the entry and exit reports, photos, notices, emails and receipts together.
If you cannot agree on the amount, contact the relevant tenancy authority or tribunal for the correct process in your jurisdiction.
Many tenancy laws require an owner to take reasonable steps to limit losses after a tenant leaves early. The exact duty and the costs affected vary by jurisdiction and agreement date. For example, Queensland’s RTA says owners must limit their loss. South Australia says a landlord should try to re-let as soon as possible. Victoria says the rental provider must do everything they can to re-let quickly.
Ask for an itemised breakdown and the relevant dates. Keep the advert, emails and any written agreement. A delay may matter, but it does not automatically remove one week of liability in every state.
What to ask the owner or agent
When did you begin seeking a replacement tenant?
What rent was advertised, and when were applications or inspections arranged?
Which costs are being claimed, and what invoices or other evidence support them?
Which rule or clause applies to my agreement and its start date?
State-by-state rules for breaking a lease in Australia
These are starting points for ordinary residential tenancies, not a substitute for checking your agreement and current official guidance. The agreement’s date can change which rules apply. Periodic tenancies also have different notice rules from fixed terms.
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State or territory
What to check if you leave a fixed term early
Official guidance
NSW
For agreements of three years or less signed after 23 March 2020, a set break fee may apply based on how much of the term has expired: four, three, two or one week’s rent. Longer and older agreements can follow different rules. Hardship applications go to NCAT; compensation may still be ordered.
There is no set break fee for now. A rental provider can claim actual costs: lost rent until a new renter moves in, reasonable advertising, and a share of the agent's reletting fee in proportion to the time left on the lease. VCAT resolves disputes. A cap on lease break compensation is due to start on 1 June 2027.
For fixed terms under three years entered into on or after 30 September 2024, reletting costs are the lower of the week-based formula and rent until a new tenant starts. Earlier agreements may have a compliant term for reasonable reletting costs. QCAT can consider hardship, but may still order compensation.
If less than 24 months of the lease remain, the break lease fee is capped at 1 month's rent. Advertising and the agent's reletting fee are worked out with SACAT formulas based on the time left. Lost rent is capped by time limits that depend on the lease length, and the landlord must try to re-let as soon as possible. SACAT can end a tenancy where continuing it would cause undue hardship. Periodic notice is a separate rule.
Contact the lessor to agree an early end. Costs can include reasonable advertising and rent until a new tenant moves in or the agreement ends. The lessor must take reasonable steps to limit losses; specific early-termination grounds and procedures also apply.
A tenant who leaves before the end date without a valid termination reason or notice may remain liable for rent until a new tenancy starts or the fixed term ends, plus advertising costs. The owner must make reasonable efforts to find a replacement. Check current Consumer Affairs Tasmania guidance for notices and disputes.
For fixed terms of three years or less started on or after 10 December 2024, the standard break-lease clause caps the fee at six weeks’ rent if less than half the term has passed, or four weeks if half or more has passed. The amount can reduce if a replacement tenant moves in within a set period. Older agreements may differ, so check the clause and start date. ACAT and statutory early-exit grounds may also apply.
For agreements entered into on or after 2 January 2024, rental-loss compensation is capped at up to 28 days’ rent if less than half the term has passed, or 14 days if more than half has passed. Actual loss and mitigation matter; older agreements may differ.
These rules can change. If the amount matters to your move budget, check the current government page and get advice from the tenancy authority, tribunal or a tenant service before agreeing to a payment.
Can you break the lease without paying costs?
An early end with no compensation is possible only if your agreement, a written settlement or a legal ground allows it. Buying a home does not automatically remove costs.
1. Check whether a legal ground applies
Some jurisdictions allow early termination for specific grounds, such as a serious landlord breach, family violence, an unsafe property or hardship. The required notice, evidence and decision-maker differ. A repair problem does not automatically let you leave without following the local process. Contact the relevant tenancy authority or tenant service before relying on a ground.
2. Ask about an agreed end date or approved replacement
The owner or agent may agree in writing to end the agreement early or may approve a transfer to a replacement tenant. Ask what costs remain and how the bond will be handled. Approval and fees depend on local law and the agreement, so do not assume a replacement makes the break cost-free.
An approved replacement tenant may affect the cost, depending on local rules.
3. Keep the agreement in writing
Record the agreed end date, any compensation, responsibility for advertising or reletting costs, and the bond split. If you cannot reach agreement, follow the dispute process for your state or territory.
Ways to reduce break-lease costs
Write as early as possible and keep a record of the date and response.
Ask for a written estimate and the rule or agreement term used to calculate it.
Offer to help find a replacement tenant if the owner agrees. You do not have authority to approve a new tenant yourself.
Keep condition reports and photos to support any bond discussion.
Hypothetical example: agreeing on an end date
As an example, say you're 6 months into a 12-month Queensland lease signed on or after 30 September 2024, paying $600 a week, and settlement is 5 weeks away. Half the term has passed, so the reletting cost is the lower of 2 weeks' rent ($1.2k) and the rent until a new tenant moves in. If you write to the agent now and offer to help find a replacement, the owner has time to relet before you leave, which can reduce what you pay. Get the end date and any payment in writing before you book the movers.
Hypothetical example: leaving without agreed notice
Here's what I'd avoid. If you move out without the right notice or a written agreement, the owner can still claim rent and costs under your state's rules, and they can lodge a claim on the bond. The bond isn't automatically lost, but you'll be the one disputing it. A short email to the agent before you move saves most of that back and forth.
Buying a property with tenants
You may buy a property that already has tenants. Before signing, ask your conveyancer to review the contract, tenancy agreement, bond and any notices so you understand when the tenant can lawfully leave and what obligations transfer to you. The answer depends on the contract and state or territory law.
1. Confirm the tenancy details
Ask for the current signed tenancy agreement, any variations, the rent ledger and bond details.
Check the fixed end date, notice already given, rent amount, bond status and any disputes or repair issues.
Do not assume a tenant must leave because the property is sold or because compensation is offered. Get advice on the applicable rules before agreeing to a settlement date.
2. Plan for management and insurance
If the property will be an investment, decide who will manage the tenancy and read the policy wording before relying on landlord insurance. Cover, exclusions, waiting periods and claim conditions differ by insurer.
A property manager can handle day-to-day tenancy tasks, but does not remove the owner’s legal responsibilities.
Check the policy wording and tenancy arrangements before settlement.
Consumer Affairs Victoria describes rent-to-buy as arrangements that combine a rental component with a purchase component, but the documents determine the rights and costs. Some combine a rental agreement with an option or contract to purchase later. Paying rent does not necessarily build a deposit or give you an ownership interest, and the price, fees, conditions and consequences if a party defaults depend on the documents. Before signing, ask an independent property lawyer to review the arrangement and a lender whether the proposed purchase and finance plan are workable. Be cautious of claims about guaranteed savings or profits.
Rent-to-buy arrangements differ. Check the contract, costs and ownership terms before signing.
FAQs about breaking a lease to buy a house
Buying a home is not, by itself, a legal ground to end a fixed-term rental agreement. Ask the owner or agent for a written early-end agreement, or check whether a specific legal ground applies.
It depends on your state or territory, agreement date, time left and the agreement terms. Some rules set a break fee or cap. Others allow particular actual costs. Ask for an itemised calculation and check it against current official guidance.
Moving out does not always end the agreement. Rent or compensation may continue under the rules that apply until a replacement starts, the agreement ends or a legal ground takes effect. Some jurisdictions use a fixed break fee or cap instead. Check your local rule before budgeting.
A transfer or assignment may be possible, but usually requires the owner’s approval and may involve costs. Ask for written approval before anyone moves in, and check your local rules and bond process.
Sometimes. A written agreement or a specific legal ground may allow an early end without some or all costs. The grounds and process vary. A landlord’s breach does not automatically let you leave without notice or a tribunal process.
Ask for the calculation, dates, agreement term and evidence for each cost. Keep your lease, notices, condition reports, photos and messages. Contact your state or territory tenancy authority or tribunal if you cannot resolve it.
An early lease exit does not automatically create a credit-report default. Credit-report defaults have separate rules. For example, the OAIC says consumer-credit payments generally must be at least 60 days overdue and meet notice and amount requirements. Tenancy databases are separate and may affect future rental applications. Rules vary by jurisdiction. In NSW, a listing is only allowed after the tenancy ends and in limited circumstances, including certain unpaid amounts above the bond or a tribunal termination order. Check your local tenancy authority if you are concerned. The OAIC explains credit-report defaults. NSW Fair Trading explains tenancy databases.
Queensland uses Form 13 when a tenant gives notice of intention to leave. For fixed terms under three years entered into on or after 30 September 2024, reletting costs are capped by the statutory formula or rent until a replacement moves in, whichever is lower. QCAT can end a tenancy for excessive hardship but may still order compensation.
This article provides general information only, not legal advice. Check the current rules for your agreement and state or territory.
Plan the finance for your first home
Tell our Brisbane mortgage brokers when your lease ends and where you are up to with the purchase. Our team can check your finance timeline so you can plan the move with your solicitor.
Allow for any overlap between rent and loan repayments in your buying budget.
If this is your first home, our guide to first home buyer loans covers the deposit, grants and loan steps to sort out before you set a settlement date.
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