One of the major changes that have been implemented with the new Residential Tenancy Act is the change to the break lease options.

The new law sees a sliding scale for any tenant who wants to break their lease, making it easier for a lease to be broken and the compensation that has to be paid greatly reduced.

The table below sets out the new requirements as set out in the Act:

For residential tenancies of 3 years or less

Mandatory break fees may apply which is payable based on the stage of the agreement.

A break fee is a penalty a tenant agrees to pay if they move out before the end of the fixed term.

If the mandatory break fee applies, 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 of 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.

If you would like to chat with me about these changes, you can call me at the office on 63525125 or send me an email at tina.case@professionals.com.au