If you’re considering ending your tenancy before your fixed-term lease expires, one term you’re likely to encounter is ‘reletting costs.’ Understanding what these are — and what’s reasonable — can help you avoid paying more than you should.
Reletting costs are the expenses associated with finding a new tenant for a property after a tenant leaves before their lease ends. In Queensland, these costs can be charged to the departing tenant as part of the compensation owed to the landlord for the early termination of the tenancy agreement.
Typically, reletting costs include advertising expenses (such as online listing fees) and a portion of the property management letting fee — the fee charged for processing applications and securing a new tenant. The exact amount can vary depending on how quickly a new tenant is found and what the property manager charges for their services.
Importantly, reletting costs must be reasonable and proportionate. If a new tenant is found within a week, your liability for ongoing costs is significantly reduced. Both the tenant and the landlord have a legal obligation to minimise the costs of an early termination — this is called the ‘duty to mitigate.’
Reletting costs are separate from rent owed for the period the property remains vacant. You may be liable for both until a new tenant moves in, which is why it’s in everyone’s interest to act promptly and cooperatively when a lease is broken.
If you’re unsure what reletting costs apply to your situation or want to understand your financial exposure before making a decision, Sapphire Estate Agents Queensland is here to help. Reach out to our team today for clear, honest guidance.
