Hi there. A lease is a legal agreement between a landlord and tenant for a fixed period of time. You may be able to end the lease early by mutual agreement, giving up possession or assignment. For each option, the costs will differ.

The simplest and most cost-effective way to end the lease early is by mutual agreement. This requires you and the landlord to sign a written agreement that clearly states that the lease will end on a date before the end of the 3 month term.

If mutual agreement is not possible, you can give up possession by notifying the landlord in writing that you intend to break the lease early. However, this tends to be the most costly option because the landlord can then apply to the Victorian Civil and Administrative Tribunal (www.vcat.gov.au) to claim compensation from you. The compensation includes a re-letting fee calculated on a pro-rata basis, reasonable advertising costs, and rent until either the landlord finds a new tenant or the original 3 month term ends – whichever end date comes first. You should check the original lease document to see if it specifies an exception to these rules, or any additional costs. You should give the landlord as much notice as possible if you intend to break the lease so that they can find a replacement tenant.

Rather than ending your lease early, it may be easier to hand over or ‘assign’ your lease to a new tenant. You will need to obtain your landlord’s consent, update the tenancy agreement, and arrange for the transfer of the bond. The landlord can charge you the reasonable costs of preparing an assignment in writing, but they cannot charge you for creating a new tenancy agreement with the new tenant.

Suggested way forward

If your landlord does not agree to ending the lease early and assignment is impossible or inconvenient, you should review the original terms of the lease to see what consequences you will face for ending the lease before the end of the 3 month term. You may want to speak to a property lawyer to further inform you of your rights, to prepare your legal documents and guide you through the process. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.