Breaking a lease early

If you want to break a fixed term tenancy lease early, you may have to pay compensation for the loss of rent to the landlord.

Fixed term leases are usually for 6 or 12 months.

Recent changes to the Residential Tenancies Act 1999 limit the amount of compensation a tenant has to pay, depending on:

• when the tenancy agreement was entered into and
• how much of the term of the agreement has been completed.

Breaking a lease without penalty

In some cases, you can break a lease without penalty, including:

• if you're experiencing domestic violence
• if the premises is unsafe or uninhabitable
• hardship
• if public housing is found.

In other instances, you may need to apply to the Northern Territory (NT) Civil and Administrative Tribunal (NTCAT) to end a tenancy.

For more information, read the guide to renting in the NT on the NT Consumer Affairs website or call 1800 019 319.

Giving notice

You should talk to the landlord or agent to see if you can terminate without penalty.

You should give the landlord or agent as much notice as possible so they can find a new tenant before your departure date.

The new tenant must be approved by the landlord.

Landlord responsibilities

The landlord must take all reasonable actions to find another tenant.

If the landlord doesn't agree to the early termination and another tenant can't be found, they can keep your security deposit to cover loss of rent and other costs to find a new tenant.

After a new tenant has been found, the landlord can apply to the NTCAT within 3 months for compensation of loss of rental income and other costs.

If the amount claimed is more than the security deposit held, they may also seek compensation.

Hardship

You can apply to the tribunal to terminate the contract under hardship if both of the following apply:

• the continuation of the tenancy would result in undue hardship to you
• the circumstances of hardship had not arisen before the time the agreement was entered into.

For more information, contact NT Consumer Affairs.