terminate a tenancy agreement
terminate a tenancy agreement
terminate a tenancy agreement

How To Terminate A Tenancy Agreement

Amy Simpson

There are a multitude of reasons whereby a tenant or a landlord might need to terminate a tenancy agreement. In Queensland in particular, the Residential Tenancies and Rooming Accommodation Act (RTRA Act) have ensured there are fair and reasonable measures in place to ensure the best possible outcome for both parties.

professional property manager return on investment best property manager terminate a tenancy agreement“Sometimes in the real estate industry there might be times where the lessor or the tenant might not be able to fulfill their part of the lease.” Daniel Gow, one of Calibre’s top Business Development Managers, reassures us… “If you’ve engaged in a good property manager to manage the tenancy then you can be assured that they will follow the correct procedures in order to ensure that both parties are well satisfied.”

In Queensland, under the Residential Tenancies and Rooming Accommodation Act (RTRA Act), there are eight ways a general tenancy agreement can be terminated.

The eight ways to terminate a tenancy agreement are :

  1. 1. When a fixed term has ended or during a periodic agreement and correct notice has been given.

    The person ending the agreement must use the correct form and comply with the appropriate notice period. A Form 13 is a Notice of intention to leave from the tenant lawfully.

  2. 2. When both parties mutually agree, in writing, to end a fixed term agreement early

    This would be a negotiation by both parties to allow the tenant to end the tenancy early with or without penalties that are agreed upon.

  3. 3. Ending an Agreement Early – Breaking a Lease

    If a tenant or property manager/owner ends a fixed term agreement before the end date without grounds (i.e. without sufficient reason) they are breaking the agreement. This is also known as breaking the lease. A tenancy agreement is a legally binding agreement. If it is broken, compensation will probably need to be paid.

  4. 4. Excessive Hardship

    If the property owner or tenant believes they would suffer excessive hardship if the tenancy agreement was not terminated, they can make an urgent application to QCAT to end the tenancy. For example, if a tenant has lost his job and is unable to pay the rent, a tenant is forced to relocate for work, tenant or property owner is suffering severe physical or mental illness and cannot continue with the tenancy.

  5. 5. Abandonment

    If a property manager/owner believes that a property has been abandoned, they can issue an Entry notice (Form 9) allowing 24 hours notice (in rooming accommodation no notice is required). The property may then be inspected to confirm it has been abandoned.

  6. 6. Death of a sole tenant

    When a sole tenant dies the tenancy ends 2 weeks after written notice is given due to the tenant’s death or the day agreed by the property manager/owner and the tenant’s representative or relative.

  7. 7. Property is for sale

    If the tenant is on a fixed term agreement, the property manager/owner cannot make them leave because they decide to sell. The tenant can stay until the end of their fixed term, and the new owner will become their property owner. Sometimes a property manager/owner will negotiate with a tenant to end the agreement early and offer some form of compensation.
    If the tenant is on a periodic agreement, and the purchaser does not want to continue renting the property (i.e. they want vacant possession of the property), the property manager/owner must give the tenant a Notice to leave (Form 12) or Notice to leave (Form R12) for rooming accommodation, that must allow at least 4 weeks’ notice after the contract of sale is signed.

  8. 8. Mortgagee in possession

    If the property owner fails to make loan repayments on their rental property and defaults on the mortgage, the lender (mortgagee), usually a financial institution, may take possession of the property.  The Notice to vacate from mortgagee to tenants informs the tenant that the mortgagee (or appointed person) will be taking possession of the property. This notice must be signed by the mortgagee (or appointed person) and given to the tenant at least 2 months before they must move out.

Thanks to Daniel Gow for sharing his expert knowledge.
0411 582 871
daniel.gow@calibrerealestate.com.au

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