The termination of a lease in Victoria is governed by Victoria’s Residential Tenancies Act 1997. All sections on this page refers to the Residential Tenancies Act 1997.

Ending a Periodic Lease

If a renter wishes to end a periodic lease (month by month) earlier, they are not required to pay any ‘lease-break’ costs. However, the renter must give the rental provider a signed written notice of intention to vacate. The notice must include:

the required minimum notice period;
the date the renter wishes to move out [S 91Z]; and
the date when the key will be returned [S 91ZZN].

Notice of intention to vacate

The renter must give the rental provider at least 28 days’ notice of their intention to vacate. There are, however, limited instances where only a notice period of 14 days will be required (see below: exceptional circumstances).

Ending a Fixed Term Lease

A fixed term rental agreement (lease) is a contract. A renter may be required to pay ‘lease-break’ costs because they are breaking a contract. Breaking a lease occurs when a renter leaves their property:

prior to the end of the fixed term; or
without giving notice.

‘Lease-breaking’ costs

If the lease was broken, the renter may be required to pay the rental provider compensation for reasonable costs. These costs include:

rent until a new renter moves in or until the end of the fixed term;
a reletting fee (usually one or two weeks of rent) and;
reasonable advertising costs.

Situations Where a Renter Can Lawfully Terminate an Agreement

There are limited circumstances under which the renter can leave before the end of their lease agreement without having to pay (or to pay minimal) costs.

Mutual consent

It is possible to end a lease at any time provided both parties have consented. But note that the rental provider’s agreement must be in writing.

Experience of family violence

An order to end the lease can be applied to the Victorian Civil and Administrative Tribunal (VCAT) if the renter is subject to violence from someone else on the lease.

Hardship

An application can also be made to VCAT to end the lease early (or changing to periodic lease) if the renter would suffer severe hardship by staying in the property due to an unforeseen change in their circumstances.

Property is unfit, unsafe or unavailable (pre-moving in)

Prior to moving to, a renter can give an immediate notice of intention to vacate if the property:

is not in good repair;
is unfit for human habitation;
is destroyed, either totally or to an extent that makes it unsafe;
is not vacant;
is not legally available for use as a home;
does not meet any of the rental minimum standards;
for any other reason is unavailable for occupation [section 91L].

However, a high threshold exists for terminating the agreement in this fashion.

Property is unfit, unsafe or unavailable (post-moving in)

The renter is also entitled to end the lease at any time without paying additional costs if the property becomes unsafe or ‘unfit for habitation’ after moving in. But there must be substantial evidence present (e.g., photographs). ‘Unfit for habitation’ has been narrowly construed to refer to an expectation of injuries resulting from the ordinary use of the premises.

Exceptional circumstances

The law recognizes extenuating circumstances (for both fixed and periodic agreements) where it may be necessary for the renter to break the lease. These circumstances include where the renter:

requires special or personal care and must leave to get care.
have received, and accepted, an offer of public housing from the Victorian Government’s Homes Victoria or an offer of community housing.
need to move to a temporary crisis accommodation
have a disability and the renter provider has refused to make reasonable modifications to suit.
have been given a ‘notice of intention to sell’ by the rental provider and were not told of the rental provider’s intention to sell the property before entering into the rental agreement
live in special disability accommodation where the rental provider’s registration to provide this accommodation has been revoked.

For periodic leases, a reduced 14 days’ notice period will be available if the renter can provide evidence supporting any of the circumstances above.

For further information and guidance on lease breaking, it is highly recommended to seek professional legal advice to understand your rights as a renter and the available procedures best suited to your circumstances.

Verge Legal provides legal advice in all states in Australia, contact us today if you need assistance.

This blog post provides general information and is not intended as legal advice. It may not be complete or up-to-date. For specific legal advice, please consult a qualified lawyer.