Ending a Fixed Term Agreement in NSW: What You Need to Know
Fixed-term agreements are a popular way for landlords and tenants to lock in a rental agreement for a specific period of time. However, situations may arise where either party needs to end the agreement before the fixed term is up. If you’re a tenant or landlord in NSW looking to end a fixed-term agreement, this article is for you.
Notice requirements
According to the Residential Tenancies Act 2010 (NSW), tenants and landlords must give a certain amount of notice when ending a fixed-term agreement. The notice period depends on a few factors:
– If the tenant or landlord wants to end the agreement at the expiry of the fixed term, they don’t need to give notice.
– If the tenant wants to end the agreement before the fixed term is up, they must give at least 14 days’ notice in writing.
– If the landlord wants to end the agreement before the fixed term is up, they must provide a valid reason and give at least 30 days’ notice in writing. Valid reasons include breach of the tenancy agreement, non-payment of rent, or if the landlord is selling the property.
Breaking the lease early
If a tenant wants to end a fixed-term agreement before the expiry date, they are breaking the lease early. This means the tenant may be liable for rent until a new tenant is found, or until the expiry of the fixed-term agreement, whichever happens first. However, the landlord has a duty to mitigate their loss and try to find a new tenant as quickly as possible.
If the tenant wants to break the lease early, they should inform their landlord in writing and try to come to an agreement. This might involve paying a fee or offering to help find a new tenant. If the landlord agrees to end the lease early, they should provide the tenant with written confirmation of the agreement.
Ending the agreement for non-payment of rent
If a tenant has not paid rent for more than 14 days, the landlord can issue a termination notice. This notice gives the tenant 14 days to pay the rent or move out of the property. If the tenant does not comply with the notice, the landlord can apply to the NSW Civil and Administrative Tribunal (NCAT) for a termination and possession order.
Ending the agreement due to breach of the tenancy agreement
If the tenant breaches the terms of the tenancy agreement, the landlord can issue a termination notice. This notice will give the tenant a certain amount of time to fix the issue or move out of the property. If the tenant does not comply with the notice, the landlord can apply to the NCAT for a termination and possession order.
In conclusion, ending a fixed-term agreement in NSW requires careful consideration of the notice requirements and any applicable fees or penalties. If you’re a tenant or landlord considering ending a fixed-term agreement, it’s important to seek professional advice and follow the correct procedures to avoid any legal or financial implications.
