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Western Australia’s consumer affairs watchdog has urged landlords to take the current market dynamics into account when considering a tenant’s request to break a lease.
Under Western Australian law, tenants must continue paying rent until their lease officially ends, or until a replacement tenant moves into the property, whichever happens first. Tenants can also be asked to cover other costs as a result of breaking a lease, such as the cost for a landlord to advertise the property. However, a landlord is obligated to do everything reasonable to find a new tenant as quickly as possible and keep these costs to a minimum.
Landlords can not ask to be compensated for losses that could have been avoided, such as if there is a delay in finding a new tenant because they have decided to undertake renovations.
They also cannot ask a tenant to repay usual costs they would have incurred at the end of a tenancy, such as passing on a property manager’s fee for the final inspection fee.
With the vacancy rate in Perth currently sitting at the extremely tight rate of 0.6 per cent, according to the Real Estate Institute of Western Australia, and available rentals being snapped up in record time, the state’s Consumer Protection Commissioner Trish Blake is urging landlords to take current market dynamics into consideration when dealing with tenants who have terminated early.
“In a tight rental market, landlords are unlikely to experience much of a loss of income and it’s always best to address these situations amicably,” a recent release from the watchdog said.
The body also noted that while the current market makes it easier on landlords negotiating a lease termination, the same cannot be said for tenants, who might be suffering from the increasingly high cost of housing and other affordability pressures.
“Consumer Protection wants landlords to appreciate that tenants breaking lease can be experiencing a lot of stress, which can include a need to relocate at short notice for work or a change in financial circumstances.”
Consumer Affairs Western Australia also reminds all parties that there are circumstances where a tenant can end their lease early without breaking the agreement or incurring costs, such as if the property is destroyed in a natural disaster or there are circumstances involving family violence.
If a landlord wishes to terminate a lease agreement early, a tenant does not have to agree with the request. However, if they do agree, they are able to request the landlord covers some of the costs of having to move home unexpectedly.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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