Breaking a Property Rental Lease in WA: What It Means for Landlords

Breaking a property rental lease agreement is a situation that many landlords may face in Western Australia, whether they are self-managing their rental property or working with a property manager. 

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Lease agreements are legally binding contracts, and early termination—whether by the tenant or the landlord—comes with legal and financial implications. It is in effect a breach of agreement.

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Understanding the rights and responsibilities involved can help property owners navigate the process smoothly. In Western Australia, this is governed by the State Government’s Residential Tenancies Act 1987 (WA) (RTA).

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What to do When a Tenant Wants to End a Lease Early in Western Australia

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In Western Australia, tenants may seek to terminate their lease early due to various reasons, such as job relocation, financial difficulties, or personal circumstances. 

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In such cases, landlords should be aware of their rights and obligations under Western Australia’s Residential Tenancy Act.

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Steps for Landlords When a Tenant Wants to Break their Lease in Western Australia:

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1. Review the lease agreement – Check the terms regarding early termination, including any break lease fees or notice periods stipulated in the contract.
2. Communicate with the tenant – Discuss their reasons for leaving and explore potential solutions, such as a mutual agreement to end the lease or finding a suitable replacement tenant.
3. Advise on financial obligations – In most cases, the tenant remains responsible for rent payments until a new tenant is found or until the lease term ends. Additionally, they may need to cover advertising costs and re-letting fees.
4. Minimise vacancy period – Act promptly to re-list the property and screen new tenants to avoid extended vacancy periods and potential lost rental income.
5. Follow RTA regulations – Ensure all actions comply with the RTA, particularly in cases where tenants cite hardship or unforeseen circumstances. As a landlord you must be seen to mitigate the tenants loss by acting quickly when a break lease is requested.

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Under the Western Australia Residential Tenancy Act:

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• Section 68: Notice of termination by tenant – Tenants must provide 21 days' written notice to terminate a periodic tenancy.
• Section 74: Termination of agreement where lessor or tenant would otherwise suffer undue hardship – Tenants experiencing undue hardship may apply to the court to end the lease without penalty.
• Section 70A: Notice of termination by tenant at end of fixed term without grounds – the tenant must provide the landlord with 30 days' notice if they do not wish to continue the lease after the fixed term ends.

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What to do When a Landlord Wants to End a Lease Early in Western Australia

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There are three main instances where a landlord can seek to terminate a lease agreement before its expiration in Western Australia. These situations must be handled carefully to avoid legal complications.

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Some reasons an owner may need to regain possession of the property could include:

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• Selling the property – If an owner decides to sell and wants the property vacant for sale purposes, they must adhere to legal notice periods and conditions outlined in Western Australia’s RTA. If it’s a fixed term lease, the lease will override sale contract conditions therefore familiarise yourself with terms and conditions before signing any contract of sale.
• Owner reoccupation/change of circumstances – In cases where the owner intends to move back into the property, they must provide sufficient notice as per the lease terms and local tenancy laws. They can see if a mutually agreeable early termination may be reached if a fixed term lease is in place, however if a tenant declines this offer a lease will need to be held or have a court judgement made on the landlord's hardship.
• Renovations or repairs – If significant renovations or major repairs require the property to be vacant, landlords must comply with Western Australia’s RTA regarding proper notice and justification (this may need health department or council deeming it uninhabitable). Again, if possible these are best done in conjunction with the lease expiring.

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Under the Western Australia Residential Tenancy Act:

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• Section 70A: Notice of termination by lessor at end of fixed term without grounds – Landlords must provide tenants with 30 days' notice if they do not wish to continue the lease after the fixed term ends.
• Section 74: Termination of agreement where lessor or tenant would otherwise suffer undue hardship – Landlords may apply to the court for lease termination if they experience undue hardship in continuing the tenancy.

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Legal Considerations Under the Western Australia's RTA

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The Western Australian Residential Tenancies Act (RTA) outlines the legal framework for breaking a lease in Western Australia. Key considerations for landlords include:

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• Notice requirements – The amount of notice required depends on the situation and must be given in writing.
• Tenant hardship – Tenants experiencing undue hardship may apply to the court to end the lease without penalty.
• Compensation – If the tenant breaks the lease, they may be liable to reimburse the landlord, such re-letting costs and loss of rent.
• Dispute resolution – If disputes arise, landlords and tenants can seek resolution through the magistrates court.

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How Rent Choice Can Help

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Navigating a lease break in Western Australia can be complex, but Rent Choice is here to support landlords every step of the way. 

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Our experienced property management team ensures compliance with tenancy laws, helps minimise financial losses, and assists in finding new tenants efficiently. 

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Breaking a lease can be a complex process, but landlords who understand their legal rights and responsibilities can handle it effectively. 

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Whether self-managing or working with a property manager, it is crucial to follow the WA RTA regulations, maintain open communication with tenants, and take proactive steps to mitigate financial impacts. 

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Source

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For more information, refer to the full text of the Residential Tenancies Act 1987 (WA):

• Residential Tenancies Act 1987 (WA)
• https://www.wa.gov.au/government/announcements/commissioners-blog-tenant-termination-breaking-your-lease
• https://reiwa.com.au/the-wa-market/resources/articles/can-you-break-a-rental-lease/

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