Breaking a lease can be tricky for both landlords and tenants. The recent changes to Queensland’s rental laws have made this process more complex, altering the financial responsibilities of both parties.
At Astute Realty, we understand the intricacies of these changes and are here to guide landlords through this transition smoothly.
Understanding the Old Rules
Previously, if a tenant wanted to break their lease early, they were required to compensate the landlord for any losses incurred. This typically meant continuing to pay rent until a new tenant was found and covering any break lease fees. This arrangement ensured that landlords were financially protected against the sudden vacancy and the costs associated with finding a new tenant.
The New Legislation
However, the rules have changed with the new legislation. According to the updated rules, landlords can now only charge tenants re-letting costs that “will be calculated on the remaining time on the tenancy or rooming agreement and whether the fixed term agreement is greater or less than three years”, per RTA Queensland.
Impact on Landlords
For landlords, this legislative change means potentially higher out-of-pocket expenses when a tenant breaks their lease. Since the tenants are now liable for less compensation, landlords must shoulder a larger portion of the costs associated with finding new tenants. This shift has understandably caused some concern among property owners, as it affects their rental income and increases the urgency to fill vacancies quickly.
The Role of a Property Manager
In light of these changes, having a reliable property manager has become more important. Astute Realty has the expertise that will help you come up with mutually beneficial lease agreements, mitigating the impact of a tenant breaking their lease.
We will act swiftly to minimise the downtime between tenants, ensuring that your property is re-let as quickly as possible. This involves:
- Marketing the property: Using our extensive network and local knowledge, we can effectively advertise your property to attract potential tenants.
- Screening prospects: We ensure that all potential tenants are thoroughly vetted to maintain the quality and reliability of occupants.
- Handling paperwork: Managing all the necessary documentation and ensuring compliance with the new legislation, reducing the administrative burden on landlords.
Tips for Landlords
To be able to adapt to this transition, here are a few tips for landlords dealing with a tenant breaking their lease:
- Keep yourself informed: Keep posted on the latest rental laws and understand how they affect your rights and responsibilities.
- Communicate clearly: Maintain open lines of communication with your tenants. Understanding their reasons for breaking the lease can help in negotiating terms that might be mutually beneficial.
- Utilise professional services: Tap a property management service like Astute Realty to handle the process efficiently. Our expertise can help reduce the financial impact and stress associated with lease breaks.
While the new legislation in Queensland presents challenges for landlords, it also underscores the importance of professional property management. At Astute Realty, our goal is to support property owners through these changes, ensuring that their investments remain profitable and well-maintained. If you’re facing a lease break situation or simply want to safeguard your property against future issues, contact us to discuss our property management services.