What Happens If You Break A Rental Lease In Sydney?

What happens if you break a rental lease in Sydney

Know The Consequences Of Breaking A Rental Lease In Sydney

If you are living in Sydney on rent, you should be aware of the consequences of the end of a rental lease. Otherwise, you can be in the biggest trouble. You need to know breaking a rental lease can have serious consequences for landlords and tenants. You can also think about the end-of-lease cleaning. If we talk about a rental lease, it’s a legally binding agreement that includes terms and conditions under which a tenant can get a property.

But, some inevitable incidents may lead tenants to contemplate breaking the lease even without maturity. Generally, if tenants break a lease, they may face a financial penalty. They need to either pay the remaining rent or can find a replacement tenant. Landlord, on the other hand, gets a full right to pursue legal action against the tenant or can withhold the security deposit.

Repercussions Of Breaking A Rental Lease In Sydney

As mentioned above, breaking a rental lease in Sydney is a punishable offense. Let’s explore everything in detail. Take a look.

Breaking rental lease in Sydney

Financial Consequences And Penalties

If any tenant breaks the rental lease due to any reason, they are entitled to pay heavy compensation and penalty to landlords. The lease agreement includes the penalty amount or it’s calculated on some numbers of week rent. In addition, the tenant may also be responsible to cover the costs incurred to find a new tenant, including real estate agent fees or advertising expenses. Besides, tenants also should know about the end-of-lease cleaning in Sydney.

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Cleaning And Property Conditions

One of the most critical aspects of breaking a lease is ensuring the property is left in an acceptable condition. Most lease agreements require tenants to return the property in a similar state to how it was when they moved in. This includes thorough cleaning of the premises, such as:

General Cleaning

All rooms, including kitchen, bathrooms, bedrooms, and living areas, should be cleaned. Dusting, vacuuming, mopping, and wiping down surfaces are included in this general cleaning.

Appliances And Fixtures

Appliances like stoves, ovens, microwaves, and refrigerators should be cleaned both inside and out. Additionally, fixtures such as sinks, faucets, and light fixtures should be cleaned and in working order.

Carpets And Floors

Carpets should be professionally cleaned, and floors should be mopped or steam-cleaned as needed.

Walls And Paint

While minor scuffs and marks might be considered normal wear and tear, excessive damage to walls may require repainting or repairs.

Lawsuits And Rental Arrears

In case the tenant doesn’t pay rent before they vacate properly, it will be added to rental arrears. The landlord gets the right to take legal action against the renter to recover the unpaid amount. The court also gives judgment in favor of the tenant. Apart from this, it also affects the credit history of the renter and they find it hard to get a loan from a bank or any financial institution. The renter also finds problems in finding another property on rent.

Lose Rental Bond

When you get a property on rent in Sydney, you need to pay a rental bond at the start of the tenancy. It works as a security deposit to cover any damages or unpaid rent to the property. So, if you break the lease, the landlord may get a full right to claim a portion of the rental bond to cover the loss.


Those tenants who don’t adhere to the lease agreement may fall into a national tenancy database, which is famous as blacklisting. Landlords use the database while dealing with any new tenants. So, any tenant who gets blacklisted may face problems securing future rental accommodations. Breaking a lease may have negative rental references from the landlords. It hinders the tenant’s capability of finding the right property.

Recovery Of Outstanding Amount

As mentioned above, if any tenant breaks the law for any reason, they may have to pay the outstanding rental amount. Landlords can approach tenants to recover the outstanding amount. Landlords need to reduce their losses by putting hard effort into finding a new tenant quickly.

Legal Proceedings

If disputes become serious and not possible for both tenants and landlords to solve by themselves, it may lead to legal proceedings. If any party breaks the rental agreement, the other party may go for legal proceedings. The court will hear the cases to resolve matters.

Reasons For Breaking A Rental Lease

Breaking a rental lease is not an easy decision. People decide to break rental leases in certain circumstances. Some of these include;

Reasons for breaking rental lease in Sydney

Job Relocation

If a tenant gets a job offer from another company in a different city or state, they break their lease agreement. In this situation, tenants can’t do anything but break the rental agreement. Some agreements include the clause of termination by giving proper notice or paying a penalty fee.

Unsafe Living Condition

If a tenant finds the rental unit becomes uninhabitable because of maintenance problems like plumbing issues, mold infestations, or pest infestations, tenants can opt to break the lease agreement. But, they need to follow a proper procedure like offering a written notice and providing the landlord a full opportunity to address issues.

Financial Issues

Sudden financial problems are another reason why many tenants break the rental agreement. This problem occurs due to many reasons like medical emergencies, loss of job, or increased expenses. It creates difficulties for tenants to pay the rental amount and survive, and they eventually decide to break the agreement. However, they can apply for tenant protection, which also allows lease termination mainly because of financial hardship.

Landlord Breaches The Contract

Landlords sometimes don’t fulfill the obligation, as mentioned in the lease agreement. It gives the tenant a genuine reason to terminate the lease. For instance, the landlord fails to do necessary repair work, not offering the required services, etc.

Fee And Compensation For Breaking A Lease In Sydney

If any tenant breaks an agreement in Sydney, it becomes the case of the Residential Tenancies Act 2010. It outlines various rights and certain obligations of tenants and landlords. Breaking a lease in Sydney may incur the following costs and considerations.

Rental lease in Sydney

  • Landlords might charge a fee for finding a new tenant.
  • You may need to pay rent until a new tenant is found or the notice period ends.
  • You could be responsible for advertising expenses.
  • You might have to cover utility costs until a new tenant moves in.
  • You could be liable for rent if the property remains vacant.
  • Some leases include a specific fee for breaking the lease early.
  • You may need to leave the property in good condition and cover repair costs.

If an individual terminates the rental lease early, they need to consider different scenarios;

Fixed Term Lease

Fixed terms lease signifies the lease agreement that includes a particular end date. If an individual tenant breaks this lease agreement, they are entitled to pay several fees. The landlord gets a right to recover the total expenses incurred on finding a new tenant and re-renting the house. It includes different expenses, including real estate agent fees, advertising costs, etc. Landlords can also ask tenants to pay the rental amount until they find a new tenant for their property.

Periodic Lease

A periodic lease doesn’t include any fixed end date and generally works every month. It needs tenants to provide a notice period to the landlord before they want to vacate the property. The notice period should be at least 21 days or more, depending on the agreement. Tenants need to pay the rental amount even during the notice period.


So, above is the information you should have if you reside in Sydney on rent. You can always approach experts like cleaners in Sydney at Multi Cleaning when you break the rental agreement for any reason. They will provide you with the required assistance based on your actual needs.

Are you looking for end of lease cleaning services?

Enquire now to know about end of lease cleaning services.

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