Hi there. When you sign a fixed term lease, you are agreeing to stay at the property for the full term. If you break the lease early, there may be costs involved. It sounds like your property manager or landlord is asking you to pay a break fee penalty for ending the lease two months early. If this penalty was included in the original terms of the lease that you signed, then you will have to pay the fee.

However, there are a few situations where you may be able to avoid paying the penalty. If your landlord (who is represented by the property manager) is not complying with the terms of the lease, you may be able to end the lease early without penalty. Under all leases, a landlord is required to keep the premises in reasonable repair, amongst other things. The information you provided suggests that the landlord failed to keep the property in good repair, which may give you the right to end the lease early without penalty.

If you think the landlord’s breach is serious enough to justify ending your tenancy, you can give 14 days’ written notice of termination to the landlord or property manager. If they disagree, they have the option of applying to the NSW Civil & Administrative Tribunal to resolve the matter.

Another option is for you and your co-tenant(s) to apply directly to the Tribunal, without notifying your landlord or property manager, for an order allowing you to break the lease early without penalty. You would need to prove to the Tribunal that the landlord’s failure to do their job properly justifies you ending the lease early. If the Tribunal disagrees with you, you may have to pay the break fee penalty.