Are you breaking a residential lease in Queensland?
Residential tenancies within Queensland are governed by the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) (the ‘RTRA’).
This Act set outs issues and remedies which may arise from a residential tenancy lease, such as breaking one.
Chapter 5 within the RTRA states the ways a residential tenancy may end. Breaking a lease will occur by one of the following:
- the lessor and tenant agree, in a separate written document, to end the residential tenancy agreement;
- the lessor gives the tenant a notice to leave under section 326 and the tenant hands over vacant possession of the premises on or before the handover day for the notice;
- the tenant gives the lessor a notice of intention to leave under section 327 and hands over vacant possession of the premises on or before the handover day for the notice;
- if there is only 1 tenant for the agreement the tenant gives the lessor a notice ending tenancy interest, and hands over vacant possession of the premises, in accordance with division 3, subdivision 2A; or the tenant dies.
- the tenant vacates, or is removed from, the premises after receiving a notice from a mortgagee or appointed person under section 317;
- the tenant abandons the premises and the period for which the tenant has paid rent has ended;
- the tribunal makes an order terminating the agreement.
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Breaking a Residential Lease with No Legal Grounds
If an individual decides they simply no longer wish to reside at the property, this is considered breaking a residential lease.
A lease is a legally binding contract and breaking the lease early may attract a penalty.
A common penalty may require the tenant to make rental payments until a new tenant is found or until the lease was scheduled to end.
Relevant forms can be found on the Queensland Government’s Residential Tenancies Authority website.
A Form 13 “Notice of Intention to Leave” must be lodged with the lessor.
Under section 327 of the RTRA, the Form must be in the approved form by being signed by or for the tenant; and identify the premises; and state the tenant intends handing over vacant possession of the premises to the lessor on the day stated in the notice; and state the ground on which the notice is given; or that the notice is given without ground.
Breaking a Residential Lease for Excessive Hardship
Under section 310 & 295 of the RTRA, individuals are able to make an urgent application to QCAT (the Queensland Civil and Administrative Tribunal) if the landlord or tenant believes they would suffer excessive hardship if the lease was not terminated.
Tenancy law does not have a definition for excessive hardship. However, the Tribunal may consider whether a tenant has lost their job; or the tenant is forced to relocate for work; or the tenant/landlord is suffering severe physical or mental illness.
These factors will be determined on the individual circumstances of each case.
Mitigating Losses
Under section 362 of the RTRA, when either a landlord or a tenant ends a lease agreement before the end date, the other party must take reasonable steps in order to mitigate their losses.
The party may not be able to claim compensation for losses which could have been avoided if reasonable steps were taken.
In order for the party to be able to take reasonable steps, the party breaking the lease must be understanding in assisting in mitigating losses.
An example of this may be a tenant breaking a residential lease early should allow for inspections for potential new tenants.
Recovering your Bond
A common concern for tenants seeking to break their residential lease is whether they will lose their bond.
General principles should still apply when ending a lease early, such as vacating the property in the same condition it was entered into (with the exception of fair wear and tear). Entry and exit condition reports, as well as photographic evidence, may be helpful to support your case in receiving your bond back.
Bond refunds are handled through the RTA (Residential Tenancies Authority).
An Exit condition report (Form 14a) and Refund of rental bond (Form 4) should be completed at the end of a tenancy agreement.
Further information regarding a rental bond can be found on the RTA’s website.
Breaking a Residential Lease Disputes
In the event a dispute arises between a landlord and a tenant regarding a residential lease, the RTA conciliation service may be useful.
Under Chapter 6 of the RTRA, dispute resolution may be requested by either party through the RTA, this may be done by lodging a form 16. The service is free, and action will be taken as soon as practicable after receiving a dispute resolution request.
However, if the authority considers the dispute is not suitable for conciliation, it may give written notice to the parties that the dispute is not suitable for conciliation.
If the matter is unable to be resolved through the RTA’s conciliation service, the matter may be referred to QCAT.
QCAT has jurisdiction to hear residential tenancy disputes and will make orders once hearing the evidence and circumstances of each individual matter. QCAT is a no costs jurisdiction and is designed for self-represented parties, however a solicitor may appear on your behalf if leave is granted.
If you are looking to end a residential lease early and would like some legal advice regarding your rights, or have a current dispute you would like assistance with handling, please feel free to use our website’s search engine today to find a suitable solicitor on the Sunshine Coast.
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