Breaking a Lease – What Landlords Need to Know - purerealestategroup

Breaking a Lease – What Landlords Need to Know

Break leases happen — and often when you least expect them.
While they’re frustrating, understanding the process can help protect your return and reduce downtime.

Here’s what every landlord should know when a tenant breaks a lease.


Tenant Obligations

Under Queensland legislation, when a tenant breaks their lease early, they’re generally responsible for:

  • Paying rent until a new tenant is found or until the lease end date (whichever comes first)
  • Covering reasonable re-letting costs, such as advertising and lease preparation fees
  • Maintaining the property during the notice period

Your property manager’s first step should be to confirm these obligations in writing, outlining next steps to protect your interests.


Advertising and Pricing Challenges

One of the biggest issues with break leases is rent pricing.

Let’s say the current lease has four months remaining at $600/week,
but the market now supports $630/week.
You can’t legally increase the rent until the end of the current fixed-term period.

That means you need to advertise at $600/week to honour the existing lease terms — even though the new tenant will pay that same rate until the lease expiry.
Once the original lease period ends, you can then set a new 12-month lease at the higher rate.

This can make the advertising process tricky — some new tenants don’t like the idea of two rent figures or multiple dates.


The Smart Solution

If a property becomes available with a few months left, one approach is to:

  • Re-lease the property up to the original lease end date, then
  • Renew immediately for another 12 months at the updated rent.

This way, you remain compliant while securing long-term stability for both parties.


Communication Is Key

Your property manager should manage the break lease delicately — balancing legal compliance, rent protection, and tenant cooperation.
Clear communication, fast advertising, and transparent documentation keep the process smooth.


Final Word

Break leases are part of property investing, but with good management, they don’t need to derail your returns.
Understanding your rights, obligations, and options can save weeks of lost rent and frustration.

If you’re navigating a break lease right now — or want to prepare for one —
contact Pure Real Estate for expert guidance.