Break Lease Early NSW Mandatory Fee Cap

I have recently moved in an apartment, and instantly regretted it; we plan to move out after 2 months of starting it. It's next to the train line with commercial freight trains going frequently. We didn't catch that during the short inspection.

I read that in NSW the mandatory break fee is 4 week rent, because the lease is broken very early, less than 25% of the length. I also read that the landlord can claim the expense to relet, loss rent if not let, and/or the rate difference. However, that seems excessive. I think it's capped and fixed at the 4 week rate, not both treatments.

Reading the webpage at https://www.fairtrading.nsw.gov.au/housing-and-property/rent…, it only shows the mandatory fee, and my contract also states similar. I worry if the landlord could file a civil case claiming loss rent.

Can anyone with experience confirm if my understanding is correct that the penalty is capped.

Thanks,

Comments

  • +2

    It's next to the train line with commercial freight trains going frequently. We didn't catch that during the short inspection.

    Ah huh…

    • +3

      Freight trains can often run at odd hours and be significantly louder than regular train. In my area we heard them in the middle of the night at ~600m from the rail line. I assume they didn't do the inspection in the middle of the night.

      As for the question - I read it the same as you have - the Break fee is the fee to end the contract, and after that you have no contractual obligation (for their loss of rent, advertising etc). You would still need to do your end of lease cleaning etc.

      You can always look for help on https://www.tenants.org.au/resources/all or give fair trading a call (Call 13 32 20 (8.30am to 5pm, Mon - Fri)) to confirm your interpretation.

      • +1

        I live about 1km from the train line, heard a train one day from home and did a big "WTF?"

        Turns out they were running a steam train on the line as a special event. It made me appreciate modern train technology.

  • +2

    It's either the 4-weeks rent, or compensation. Not both.

    https://www.tenants.org.au/factsheet-16-ending-tenancy-early

  • Ear plugs for night and noise cancelling headphones for the day would be a cheaper option.

  • We used to live next to train tracks whilst living overseas. We got thick curtains and they helped heaps.

  • +1

    commercial freight trains ….. We didn't catch that

    Run faster next time .. no ticket required đŸ¤”

  • +1

    If you start a meth lab in the house, the landlord may break the lease for you

    • I've also heard that this also gives you free accommodation for a few years … in a prison :P

  • I worry if the landlord could file a civil case claiming loss rent

    They can't sue you for more than what's been specified in the agreement that you, as the tenant and they, as the landlord have both signed.

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