Break Lease Fee Queensland Landlord: Re-Letting Costs and Caps

When a tenant breaks a fixed-term lease early in Queensland, re-letting costs are now capped for agreements entered into on or after 30 September 2024. Earlier agreements may still use a compliant term for reasonable re-letting costs.

How Break Lease Fees Are Capped

For fixed-term agreements of not more than 3 years entered into on or after 30 September 2024, the amount a landlord can claim from a departing tenant who breaks the lease early is capped at the lower of:

1. The actual rent lost — the rent you would have received from the break date until either a new tenant moves in or the fixed term expires (whichever comes first), or
2. A formula tied to how much of the fixed term has elapsed — the earlier the tenant breaks, the higher the prescribed amount of rent you can claim as a break fee.

The exact sliding scale is prescribed in the legislation. The principle is straightforward: a tenant who breaks at month 2 of a 12-month lease leaves the landlord with more re-letting work than one who breaks at month 11, and the cap reflects that.

Your Duty to Mitigate

Regardless of the cap, landlords have a continuous statutory obligation to mitigate losses. That means:

• Re-advertising promptly. You must begin marketing the property at market rent within a reasonable time after the tenant notifies you of the break.
• Not holding out for above-market rent. If you refuse a qualified applicant at market rent and leave the property vacant, you can't claim the extended vacancy period from the departing tenant.
• Documenting your re-letting efforts. Keep copies of advertisements, enquiry logs, and records of any applications received and processed.

If a dispute over break lease costs goes to QCAT, the tribunal will examine whether you took reasonable steps to minimise the vacancy. Failing to mitigate can reduce or eliminate your claim entirely.

What You Can Claim

For agreements entered into on or after 30 September 2024, the statutory re-letting cost is the lower of the prescribed amount and rent lost until a new tenant moves in. No additional re-letting costs can be requested. Unpaid rent, service charges, or property damage remain separate claims where the tenant is still responsible for them. For an earlier agreement, a compliant term for reasonable re-letting costs may continue to apply.

How to Claim

Break lease costs are typically claimed from the tenant's rental bond through the standard RTA bond refund process (Form 4). If the costs exceed the bond, you can pursue the difference through RTA dispute resolution (Form 16) and, if conciliation fails, through QCAT.

For a bond claim or dispute, landlords must provide supporting evidence to the tenant within 14 days after lodging the claim or dispute. The evidence is provided to the tenant, not submitted to the RTA.

When a Tenant Breaks the Lease Under Special Provisions

Certain statutory break provisions carry their own rules:

• Domestic and family violence (Form 20): A tenant experiencing DFV may leave immediately after giving the notice, but their interest in the tenancy ends only on the later of 7 days after the notice is given or the day they vacate. Rent is due until then, but standard re-letting costs do not apply.
• Non-liveability: If the property is destroyed or made uninhabitable, either party may end the tenancy under section 284 by giving a Form 12 or Form 13 within 1 month of the event. No break-lease costs apply to this statutory termination.
• Landlord breach: If the tenant terminates because the landlord failed to comply with a QCAT Repair Order (Form 13 with 14 days' notice under section 307D), the tenant is not liable for break-lease costs.

The Ending a Tenancy in Queensland guide covers break-lease calculations alongside every other termination ground, with the re-letting cost caps and the evidence requirements for bond claims.

See more Queensland guides →