Lease Breaks
OVERVIEW
A fixed term tenancy is a legally binding agreement between two parties for a fixed period of time and cannot be ended by either party giving notice.
A fixed term tenancy may be terminated if all tenants named on the agreement agree to it and the landlord gives consent.
Tenants have the right to apply to the Tenancy Tribunal for early release under S.66 of the Residential Tenancies Act 1986, if they can prove severe hardship or unforeseen circumstances.
CONDITIONS
Real Property Management may give consent for a tenant to break their lease early with the following conditions:
- Before you can be released from a fixed term tenancy we need to have suitable replacement tenants to either take over the remainder of the fixed term or start a new tenancy at the property on an agreed date.
- You will be required to cover all actual and reasonable costs associated with listing the property and finding replacement tenants, including but not limited to: advertising fees, credit checks, administration time and disbursements and mileage.
- You will be provided with itemised invoices once costs have been incurred and payment is expected within seven days.
- You must continue paying rent until replacement tenants are found and up to the day before the new tenancy commences unless arranged otherwise.
- Any interested parties must view the property in person and then complete an application. All applicants are subject to our standard vetting process, including credit, background and reference checks. (In accordance with the Privacy Act 2020 we are not permitted to disclose the reason an applicant is declined).
- During this process you must continue to meet all obligations and responsibilities as set out in your tenancy agreement.
THE PROCESS
Complete an application to be released from a fixed term tenancy early.
Once we have received your completed application, the property can be advertised and viewings held.
After viewing the property, any interested parties must complete an application online using the application link provided.
Applications will be processed as they are received.
If we find applicants that meet our criteria we can approve them and negotiate suitable dates* for you to vacate and the new tenants to move in.
Once these dates have been confirmed and the new tenants have paid their deposit and signed the tenancy agreement you can be released from the fixed term tenancy. An email will be sent to you by your Property Manager to confirm this in writing.
*A minimum of three days will be required in between these two dates to carry out a bond inspection, arrange any necessary cleaning and maintenance, carry out smoke alarm and methamphetamine testing (if necessary) and prepare a condition report.
FIXED TERM LEASE BREAK FEES
Below is a guide to the actual expenses that may be reasonably incurred by a tenant when breaking a fixed term lease.
| ADVERTISING | COST |
|---|---|
| Trademe advertisement | $143.75 (incl GST) |
| Listing on Real PM website | $50.00 per hour |
| SCHEDULE AND ATTEND VIEWINGS | COST |
|---|---|
| Deal with enquiries and schedule viewings | $50.00 per hour |
| Attend viewings | $50.00 per hour |
| Mileage (at current IRD rate) | $0.95 per km |
| PROCESS APPLICATIONS | COST |
|---|---|
| Credit, background and reference check (includes our time and bureau fees) | $25.00 ea (incl GST) |
| PREPARATION OF TENANCY DOCUMENTATION | COST |
|---|---|
| Set new tenant(s) up in our system, process payments, prepare tenancy documentation and lodge bond | $70.00 per hour |
| BOND INSPECTION/END OF TENANCY MATTERS | COST |
|---|---|
| Carry out bond inspection | $70 per hour |
| Mileage (at current IRD rate) | $0.95 per km |
| Methamphetamine test (where required) | $229.95 - $350 (incl GST) |
| CONDITION REPORT | COST |
|---|---|
| Preparation of condition report | $70.00 per hour |
| Mileage (at current IRD rate) | $0.95 per km |
All costs are GST inclusive.
Marketing times may vary depending on the property location and the season.
