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Breaking a Lease Early in NSW: What Tenants Need to Know

 

3rd June, 2025

 

Breaking a lease early in NSW involves new rules that tenants should understand. Whether you need to move for work, family, or other reasons, this guide explains your rights and responsibilities.

What Does Breaking a Lease Mean? 

When you sign a fixed-term lease, you agree to rent the property for a set time. However, circumstances can change, and you might want to leave before your lease ends. Breaking a lease means ending your rental agreement early, which can sometimes come with costs.

How Are Break Fees Calculated?

For residential leases in NSW signed on or after 23 March 2020 and lasting three years or less, break fees are calculated based on how far into the lease you are:

  • If less than 25% of the lease term has passed, the break fee is up to four weeks’ rent.
  • If 25% to less than 50% has passed, the fee is three weeks’ rent.
  • If 50% to less than 75% has passed, the fee is two weeks’ rent.
  • If 75% or more has passed, the fee is one week’s rent.

For leases longer than three years, break fees don’t automatically apply. Instead, the landlord may seek compensation for reasonable costs, such as lost rent, advertising expenses, or letting fees. If you and your landlord can’t reach an agreement, they may apply to the NSW Civil and Administrative Tribunal (NCAT) to resolve the matter.

 

When Can You End Your Lease Early Without Paying Fees?

Certain situations allow tenants to end their lease without penalty. For example:

  • If you or a dependent child experience domestic violence, you can leave immediately.
  • You can also leave early if you accept social housing or need to move into an aged care facility.
  • If the landlord breaches the lease or fails to disclose vital information (like asbestos), you can terminate early.

In these cases, giving written notice of at least 14 days is usually required.

 

Notice Periods for Ending a Lease Early 

When breaking a lease, timing your notice is important. For leases six months or shorter, you can only give notice in the last 60 days. For longer leases, notice can be given within the last 90 days.

Make sure you provide your landlord or agent with written notice that includes your intended move-out date.

 

What Happens if the Landlord Ends the Lease Early? 

Sometimes, landlords can end a lease early due to tenant breaches or hardship. They must follow specific legal procedures, including issuing proper notices. If tenants do not vacate by the deadline, landlords may seek orders from NCAT.

 

Why Seek Professional Advice?

Breaking a lease early can be complicated, it’s easy to misunderstand your rights or the fees involved. Therefore, consulting a property law expert is crucial before taking any steps.

Contact Bangalow Conveyancing today to get clear, professional advice tailored to your property situation.

If you are interested in learning more on Rental Leases, please refer to our other blogs like Understanding Rental Lease Transfers in NSW or The Risks of Not Being on the Lease in NSW.

If you found the information in this blog post helpful, check out our other regularly updated blog posts.