Notice of termination

A tenancy will usually be terminated by either the landlord or the tenant giving notice to the other party. However, in certain circumstances the Tribunal may be required to make orders to terminate a tenancy.

A notice of termination must:

• be in writing
• state the address of the premises
• be signed and dated
• allow the required period of time
• give the date on which the tenant intends to, or is requested to, move out (NB: do not use words such as 'by' or 'on or before' in the notice)
• give full details of all breaches (if any) or reasons for ending the agreement
• and, if given to a tenant, include a statement that information about their rights and obligations can be found in the tenancy agreement.

The notice can be posted or given personally. A notice cannot be stuck to or put under a door by the person sending the notice.

If the notice is sent by post at least 4 working days (not including the day the notice was sent) should be added to the amount of notice, to allow time for the notice to be delivered.

The notice period is counted from the day after the notice is served.

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Notice periods

When the fixed term period of the agreement is due to run out, either party can give 14 days notice to end the tenancy. This notice can be served up to and including the last day of the fixed term.

Once the fixed term period has ended, a tenant is required to give at least 21 days notice, and the landlord must give at least 60 days notice.

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Notice on sale of premises

If the premises are sold and vacant possession is required in the contract of sale, the landlord must give the tenant at least 30 days written notice (after the contracts of sale have been exchanged). This is only applicable to continuing tenancy agreements.

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Notice on breach

A notice of termination may be given at any time if either party seriously or persistently breaches a term of the agreement, or if the tenant is more than 14 days in arrears of rent. At least 14 days notice must be given in writing.

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Breaking an agreement early

If a tenant wants to end their agreement early they should give as much notice as possible, preferably in writing (keep a copy of the letter). It is a good idea to state the exact date you intend to leave and that you want the landlord (or agent) to find a new tenant. Any assistance in finding a replacement tenant (such as making the property readily available for inspection) may help to reduce the costs involved.

Having said this, breaking an agreement can be costly. A landlord can claim compensation for any loss they suffer as a result of a tenant ending the agreement early. The costs a tenant could be liable for include:

• rent until new tenants move in or the existing agreement runs out (whichever happens first);
• a reletting fee (usually one weeks rent) when the property is let by an agent who charges the landlord a fee for finding new tenants; and
• advertising costs.

For a landlord to successfully claim, they must be able to show that their loss was caused by the tenant breaking the agreement early, not by other factors. For example, if a tenant breaks the agreement just prior to the expiry date, the full amount of reletting and advertising charges may not be able to be passed on since the landlord would have incurred these expenses shortly anyway. The landlord also has a duty to keep their loss to a minimum. This means that the landlord must make a reasonable effort to find a new tenant, otherwise any claim they later make may be reduced by the Consumer, Trader and Tenancy Tribunal.

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Undue hardship

A tenant or landlord can at any stage of the tenancy apply to the Consumer, Trader and Tenancy Tribunal to end the agreement on hardship grounds. No prior notice is required.

It is up to the party claiming hardship to satisfy the Tribunal that there are grounds for ending the agreement. If the Tribunal makes an order to end the tenancy, the party suffering hardship may be ordered to pay compensation to the other party.

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Fair wear and tear

At the end of a tenancy the tenant is responsible for leaving the premises as nearly as possible in the same condition, fair wear and tear excepted, as set out in the original condition report.

Fair wear and tear means the deterioration that occurs over time with the reasonable use of the premises by the tenant and the ordinary operation of natural elements, even though the premises receive reasonable care and maintenance.

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Final inspection and returning keys

At, or as soon as possible after, the end of the tenancy both the tenant and the landlord/agent must carry out a final inspection of the premises. The original condition reports should then be completed by both parties. However, if a reasonable opportunity is given to the other party to be there and they do not show up, the report may be filled out in their absence.

A tenant is responsible for returning all copies of keys given to them by the landlord or agent at the start of the tenancy.

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Bond refunds

During the tenancy, the rental bond is held by the Office of Fair Trading. At the end of the tenancy, after the final inspection, a claim for Refund of Bond Money form should be filled out by the landlord or agent and given to the tenant to sign. Claim forms can be obtained from the Renting and Strata Services Branch of the Office of Fair Trading, any Fair Trading Centre, Commonwealth Bank branches or the Rental bonds page of this website.

Any disagreement over how the bond is to be paid out should first be discussed between the parties.

If agreement cannot be reached, either party may send a claim form to the Renting and Strata Services Branch of the Office of Fair Trading, without the signature of the other party. The bond will not be paid out straight away. A letter will be sent to the other party advising them of the claim and giving them 14 days to apply to the Tribunal to dispute the claim. If no reply is received within 14 days the bond will then be paid out.

No matter who applies to the Tribunal it is always up to the landlord to prove any claim on the bond.

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