Okay, so you're in a situation where you might need to break your lease in South Australia. It can feel stressful and confusing, especially with all the legal jargon. But good news! As of July 1st, 2024, there have been some important changes to the rules that actually offer more flexibility for tenants. Let's break down what you need to know about ending your lease early.
The Rent:
Under the updated laws, if a tenant breaks a fixed-term lease with less than 24 months remaining, the maximum amount of rent they can be asked to pay as compensation for loss of rent is one month's rent.
This one-month cap on lost rent only applies when less than 24 months remain on the lease. If the lease had a longer term initially and more than 24 months remained when the tenant broke it, a different calculation applies (one month's rent for every 12 months left, up to a maximum of six months' rent).
Remarketing & Opens:
A landlord or agent is not required to commence remarketing of a property until vacant possession of the property is provided.
Once keys have been returned to a landlord or agent re-marketing may commence.
What Happens with Re-letting Costs?
When you break your lease, the landlord or agent will need to find a new tenant. These are called "re-letting costs," and can be on-charged in-line with the formula determined by the South Australian Civil and Administrative Tribunal (SACAT).
Advertising costs incurred by the landlord can also be passed on to the tenant,
These charges are pro-rata and based on the balance of the length of the lease it cannot be determined until a new tenancy commences.
In summary, while the new laws provide a cap on the amount of rent a tenant might have to pay when breaking a lease with less than 24 months remaining, they are still responsible for other reasonable costs associated with re-letting the property. The "one month's rent" rule is a significant change that offers more protection to tenants in shorter-term leases.
It's always recommended that tenants who need to break their lease communicate with their landlord or property manager as early as possible and try to reach a mutual agreement. If an agreement cannot be reached, the South Australian Civil and Administrative Tribunal (SACAT) can provide further guidance and resolve disputes.