What does it cost to break a lease early in Western Australia?
Yes, breaking a lease early in Western Australia will cost you money. There is no set break fee. You are legally responsible for paying rent until a new tenant is found, plus reasonable re-letting costs like advertising fees and the unexpired portion of the property manager's letting fee.
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How it works in practice
Breaking your lease in Western Australia can be expensive because there is no fixed penalty or capped fee to terminate the agreement early.
Breaking a Fixed-Term Lease
When you sign a fixed-term lease in Western Australia, you are legally bound to pay rent for the entire duration of that agreement. If you need to move out early, it is considered breaking the lease, and there are financial consequences. Unlike some other states, WA does not have a legally capped, flat-rate break fee.
What You Must Pay
Instead of a flat fee, you must compensate the landlord for their actual financial losses. Primarily, you are legally required to continue paying rent until a new tenant signs a lease and moves in, or until your original lease end date arrives, whichever happens first.
Additionally, you must cover the landlord's reasonable costs to re-let the property. This typically includes the cost of advertising the home and a pro-rata share of the property manager’s letting fee. For example, if you break the lease halfway through, you may have to pay 50% of the letting fee the landlord was charged.
The Landlord's Duty to Mitigate
While you are responsible for these costs, the landlord also has a strict legal obligation to mitigate their loss. This means they must actively advertise the property and make a genuine, reasonable effort to find a replacement tenant as quickly as possible. They cannot simply leave the property empty and force you to pay the remaining rent.
Important exceptions
There are specific exceptions where you can legally break your lease early without financial penalty in Western Australia.
If you are experiencing family and domestic violence, you can terminate your tenancy by providing a minimum of seven days' written notice alongside supporting evidence.
You can also break the lease without penalty if the rental property is destroyed, becomes permanently uninhabitable, or is compulsorily acquired by the government. Additionally, if the landlord has severely breached the tenancy agreement and refuses to fix the issue, you can apply to the Magistrates Court for an order to terminate the lease early.
What you should do now
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Read your tenancy agreement to understand your specific obligations and check if there are any special clauses regarding breaking the lease.
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Notify your landlord or property manager in writing as soon as possible, explicitly stating your intended move-out date.
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Request a written estimate of the expected re-letting costs, including advertising and pro-rata property management fees.
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Make the property presentable and accommodate reasonable viewing times to help the landlord find a new tenant quickly.
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Continue paying your rent on time until a new tenant moves in to avoid breaching your lease and damaging your rental history.
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