Lease Break Fees - Does Tenant Have to Pay The Fees if Notice Is Given?

• 

  bobbified on 28/02/2024 - 05:40

  +5

  Should the tenants be paying the $500 lease break fee on top of the two week notice?

  "If for any reason the Tenant has to break the Lease agreement prior to 17/03/2024, they must give 2 Weeks-Notice and a Break Fee of 2 weeks rent $500 non-refundable fee"

  This is pretty damn clear. It's two weeks notice AND a break fee. That is, the break fee is payable in addition to the notice provided.

  • 

    Katicai on 28/02/2024 - 10:10

    Yeah, thought it was clear in the contract, the tenant is refusing to pay the lease break fee.

• 

  payless69 on 28/02/2024 - 07:40

  +1

  Your honour: I had a bad youth…..

• 

  DashCam AKA Rolts on 28/02/2024 - 08:41

  Seems clearly set out in the lease.
  What bobbified said.

• 

  CyberMurning on 28/02/2024 - 08:49

  the term is clear

• 

  nedski on 28/02/2024 - 09:15

  +1

  It really depends on the jurisdiction where the lease is as legislation comes into play. For example in the ACT, you cant charge flat break lease fees but Landlords can recover the costs for having to put the property back onto the market. There is an obligation however for the landlord to mitigate their losses eg being quick about listing the property as well as not jacking up the listing price so no one rents it.

  • 

    Gunnar on 28/02/2024 - 20:05

    SA has a similar arrangement as well. Essentially the landlord cannot profit if a tenant breaks the lease and someone moves into the property immediately.

    OP you’ll need to see what the laws are on this matter. More importantly what did your managing agent say on this matter? They would be versed im tenancy law on your situation

• 

  El cheepo on 28/02/2024 - 10:45

  They probably figure you won’t/can’t do anything about it as it was just a room for rent and probably a self made contract? (I’m guessing - could be wrong)

  In any case, they should pay but likely won’t.

  Have you returned the bond yet?

  • 

    Katicai on 28/02/2024 - 11:37

    Hi, thanks for the reply. Yes it is a room self made contract. Bond has not been returned as it can be held for max 7 days after tenants have left.

• 

  freefall101 on 28/02/2024 - 11:07

  +2

  You're not allowed to just charge money for ending a lease early in WA, even if they signed a contract agreeing to it. You can charge them for specific costs involved in breaking the lease (readvertising, lost rent) but that's it.

  • 

    Katicai on 28/02/2024 - 11:46

    Thanks, What would be a good indication of these costs?

    • 

      freefall101 on 28/02/2024 - 12:05

      The invoices of the costs you incurred. You need to be able to show you incurred actual cost.

      Normal process would be they break the lease, you advertise, get a new tenant and if you can charge them for that advertising fee and any time between the old lease and new where you’re out of pocket.

      If you’re not re-leasing or didn’t advertise, you can’t charge them anything, because that’s on you.

    • 

      dasher86 on 28/02/2024 - 15:11

      It would most likely be lost of rent until you replace them, this would be max up until 17/03.
      I don't think you can claim advertising cost in this case as you would have had to advertise before the 17 anyway.
      You will still need to prove that you did your best to fill the vacancy…