Break Lease QLD: Complete Guide for Landlords

If you’re a self-managing landlord in Queensland and your tenant wants to leave before the end of their fixed-term agreement, this is a break lease situation. How much you can recover, what you’re required to do, and what the tenant actually owes you are all governed by the Residential Tenancies and Rooming Accommodation Act 2008 (the RTRA Act) — and the rules changed significantly on 30 September 2024.

Under the old framework, a tenant who broke a lease could be liable for “reasonable costs” of reletting. That language was deliberately vague and led to disputes. The 2024 amendments replaced it with a capped reletting cost structure that limits what you can charge based on how far through the fixed term the tenant is. If your tenancy agreement was signed before 30 September 2024 and included a compliant reletting costs clause, the new caps still apply — the transitional provisions in Section 586 of the Act deem the old clause compliant with the new framework.

This guide covers what you can recover, how the caps work, your legal obligation to mitigate, the bond process, and what happens if the tenant disputes your claim.

If a tenant wants to leave early, start with the QLD lease agreement guide and the broader QLD rental laws guide. If money or damage may be disputed at the end, our QLD rental bond guide guide is the natural companion page.

What “Breaking a Lease” Actually Means in QLD

Breaking a lease occurs when a tenant ends a fixed-term tenancy agreement before the fixed term expires, in a way that is not otherwise permitted under the Act. The key phrase is “other than in a way permitted under this Act” — this is the language used in Section 357A(1)(b).

A tenant who leaves at the end of a fixed term after giving proper notice using a Notice of Intention to Leave (Form 13) is not breaking the lease. A tenant who leaves a periodic agreement with the correct notice is not breaking the lease. A tenant who obtains a QCAT order for excessive hardship is not breaking the lease — they’re ending the tenancy through a lawful mechanism. And a tenant who ends their interest in the tenancy due to domestic and family violence under the DFV provisions is explicitly excluded from reletting cost liability under Section 357A(2)(b).

Breaking a lease only applies to a tenant who walks away from a fixed-term agreement early without a lawful basis for doing so. When this happens, the Act allows you to recover reletting costs — but only within specific limits.

The Reletting Cost Framework (Section 357A)

The amount you can recover from a tenant who breaks a lease depends on two things: the length of the original fixed term, and how much of it had expired when the tenant handed over vacant possession.

Fixed-Term Agreements of 3 Years or Less

For a fixed-term agreement of not more than 3 years, the reletting costs are the lesser of two amounts. The first amount is the capped reletting cost based on how far through the term the tenant is. The second amount is the actual rent that would have been payable for the period between the tenant handing over vacant possession and the day a new tenancy agreement commences after the property is relet.

The capped amounts under Section 357A(4) are:

Less than 25% of the fixed term expired — 4 weeks rent. 25% or more but less than 50% expired — 3 weeks rent. 50% or more but less than 75% expired — 2 weeks rent. 75% or more expired — 1 week’s rent.

The word “lesser” is doing the heavy lifting here. If the cap says 4 weeks rent but you find a new tenant within 2 weeks, you can only claim 2 weeks. If the cap says 1 week’s rent but the property sits vacant for 3 weeks, you can still only claim 1 week. The cap is a ceiling, but the actual vacancy period can bring the amount below the cap.

A Worked Example

Your tenant is 6 months into a 12-month fixed-term agreement paying $500 per week. They hand back the keys and vacate. That’s exactly 50% of the term expired, so the cap is 2 weeks rent ($1,000). You advertise immediately and a new tenant signs a tenancy agreement that starts 10 days later. The actual rent lost is 10 days — roughly $714. The lesser of $1,000 (cap) and $714 (actual loss) is $714. That’s the maximum reletting cost you can claim.

If instead it takes you 4 weeks to find a new tenant, the actual rent lost is $2,000. But the cap is $1,000. The lesser of the two is $1,000. You cannot recover the extra $1,000 — that is the practical effect of the cap.

Fixed-Term Agreements Over 3 Years

For fixed terms of more than 3 years, the calculation is different. The reletting costs are the lesser of: one month’s rent for each 12-month period remaining on the agreement (up to a maximum of 6 months rent), or the actual rent payable between the tenant handing over vacant possession and the day a new agreement commences.

This formula is relevant for longer-term tenancies. A tenant who breaks a 5-year lease with 3 years remaining could face a cap of 3 months rent. But if you relet the property in 2 weeks, the actual loss is 2 weeks rent — and that’s all you can claim.

Your Tenancy Agreement Must Include the Reletting Costs Clause

Reletting costs are not automatic. Section 357A(1) says a residential tenancy agreement “may include a term” requiring the tenant to pay reletting costs — but only if the term meets three conditions. The agreement must be for a fixed term. The tenant must be made liable only if they end the agreement in a way not permitted under the Act. And the tenant’s liability must be limited to the reletting costs as calculated under Section 357A.

If your tenancy agreement does not include a compliant reletting costs clause, you cannot recover reletting costs under this provision. The standard General Tenancy Agreement (Form 18a) includes this clause at Clause 7 of the prescribed terms, so if you’re using the RTA’s standard form you’re covered. If you’re using a non-standard agreement, check that it includes a properly drafted reletting costs term.

A reletting costs term that does not comply with Section 357A(1) is void under Section 357A(2)(a). This means a clause that attempts to charge more than the statutory cap — for example, a flat “break lease fee” of 6 weeks rent regardless of circumstances — is unenforceable.

Agreements Signed Before 30 September 2024

If your tenancy agreement was signed before the 2024 amendments took effect and it included a term requiring the tenant to pay “reasonable costs” of reletting (the old wording), Section 586 of the Act provides a transitional rule: the existing term is taken to comply with the new Section 357A(1), provided it otherwise met the requirements of the old law. You don’t need to issue a new agreement or amend the existing one — the new caps apply automatically.

Your Duty to Mitigate (Section 362)

This is the provision that many self-managing landlords overlook, and it can significantly reduce what you’re entitled to recover.

Section 362 imposes a duty on the landlord (referred to in the Act as the “lessor”) to take all reasonable steps to mitigate any loss or expense resulting from a tenant’s act or omission — including breaking the lease. The section is explicit: you are not entitled to receive compensation for any loss or expense that could have been avoided by taking those steps.

In practice, this means you must actively relet the property. You need to advertise promptly, conduct inspections, and process applications without unreasonable delay. If you leave the property sitting vacant for weeks without advertising, or reject reasonable applicants to keep the property empty for your own convenience, QCAT will reduce your compensation claim accordingly.

Section 421 reinforces this: when making an order for compensation in favour of a landlord, QCAT must have regard to whether the landlord has complied with the duty to mitigate under Section 362. If you cannot demonstrate that you took reasonable steps to relet, expect your claim to be reduced — potentially to nothing.

The RTA’s guidance in its “Managing general tenancies in Queensland” publication puts it plainly: “you have an obligation to reduce or minimise costs that result from ending an agreement early.”

What Costs Can You Actually Recover?

The reletting costs under Section 357A cover the rent lost during the vacancy period, subject to the caps described above. Section 420(3) of the Act says a QCAT order in favour of a landlord for reletting must not exceed the reletting costs calculated under Section 357A. Whether additional costs such as advertising can be recovered separately through QCAT’s general compensation powers is not clearly settled by the legislation or current RTA guidance — landlords seeking to recover costs beyond the statutory reletting amount should seek legal advice.

What you cannot do is charge arbitrary “administration fees,” “break lease processing fees,” or any other charges that are not directly connected to the actual cost of reletting.

Domestic and Family Violence Exemption

Section 357A(2)(b) makes it clear: the reletting costs provision does not apply if the tenant ended the agreement or their interest in the agreement after experiencing domestic violence, using the process set out in the DFV provisions of the Act.

A tenant or co-tenant experiencing domestic and family violence can end their interest in the tenancy by issuing a Notice Ending Tenancy Interest (Form 20) with the relevant supporting evidence. The tenant can vacate immediately but must give 7 days notice and pay rent until the end of that 7-day notice period.

The supporting documentation that may be provided includes a protection order, temporary protection order, police protection notice, interstate order or injunction, or a domestic and family violence report signed by an authorised professional.

A tenant who leaves under the DFV provisions is not liable for reletting costs, is not required to compensate you for loss of rent, and is not responsible for damage caused by an act of domestic and family violence. If there are costs associated with breaching other terms of the agreement that are unrelated to the DFV, those may still be claimable — but the reletting costs specifically are excluded.

This is not a “break lease” situation in the legal sense. The tenant is exercising a right granted by the Act, and you cannot treat it as an early termination for cost recovery purposes.

Excessive Hardship — When a Tenant Applies to QCAT

Sections 295 and 310 of the Act allow a tenant (or a landlord) to make an urgent application to QCAT to end the tenancy on the grounds of excessive hardship. This is a separate pathway from breaking a lease — it’s a lawful mechanism for ending a tenancy early, and QCAT determines the outcome.

The Act does not define “excessive hardship.” QCAT decides on a case-by-case basis, and the applicant must provide evidence to support their case. The RTA’s guidance gives examples including serious illness, loss of employment, a job transfer, or divorce.

If a tenant successfully applies to QCAT for a hardship termination, QCAT may make orders about the termination date and compensation payable to you. This is not the same as the reletting costs framework — QCAT has broader discretion to order compensation it considers appropriate, but it also has discretion to reduce or eliminate compensation based on the circumstances.

From a landlord’s perspective, you should be aware that a tenant who applies for a hardship order is using a lawful process. If QCAT grants the order, you cannot treat it as a lease break and apply the Section 357A caps on top — the QCAT order replaces those provisions for that particular termination.

Mutual Agreement to End Early

Both parties can agree in writing to end a fixed-term agreement early. Section 277(a) of the Act allows this. If you and the tenant mutually agree to end the tenancy before the fixed term expires, the terms of that agreement govern what happens — including any financial arrangements.

A mutual agreement should be documented in writing and signed by both parties. It should clearly state the agreed termination date, any financial terms (such as whether reletting costs will be charged and at what amount), and when the tenant will hand over vacant possession.

If you reach a mutual agreement, the Section 357A reletting cost framework does not apply because the tenant is not ending the agreement “other than in a way permitted under this Act” — they’re ending it by mutual written agreement, which is a permitted way.

The Bond and Break Lease Claims

When a tenant breaks a lease, the rental bond held by the RTA becomes relevant. The bond can be used to cover reletting costs and any other amounts owed, but only through the proper RTA process.

At the end of the tenancy, either party can lodge a Refund of Rental Bond (Form 4) with the RTA. If both parties agree on how the bond should be split — for example, the tenant agrees that 2 weeks rent should be deducted for reletting costs — you can submit an agreed refund and the RTA will process it.

If you disagree on the amount, the RTA’s dispute resolution process applies. Either party can lodge a Dispute Resolution Request (Form 16). The RTA provides free and impartial conciliation. If conciliation fails, the matter can be taken to QCAT for a binding decision.

You must provide evidence to support any claim on the bond. For reletting costs, this means evidence of: the fixed-term agreement, the date the tenant handed over vacant possession, the date a new tenancy agreement commenced (or evidence that the property remains vacant and you’ve been actively trying to relet), advertising costs, and records of any applications received and processed.

The Tenant’s Obligations When Breaking a Lease

A tenant who breaks a lease must still meet their obligations under the agreement until they vacate. They must continue paying rent until they hand over vacant possession. They must leave the property in the same condition it was in when they moved in, fair wear and tear excepted. They should complete an Exit Condition Report (Form 14a). And they must return all keys and access devices.

The tenant’s liability for reletting costs is triggered when they hand over vacant possession — that is the date from which the vacancy period is calculated. If the tenant simply stops paying rent but doesn’t vacate, that is a rent arrears situation (a breach of agreement) rather than a break lease situation, and different provisions apply.

What to Do When Your Tenant Wants to Break the Lease

When a tenant tells you they want to leave early, here is the process you should follow as a self-managing landlord.

First, confirm in writing that the tenant is breaking the lease and the date they intend to vacate. Ask the tenant to provide written notice — even though there is no prescribed form for a break lease notice (unlike a Notice of Intention to Leave, which is Form 13), written communication protects both parties.

Second, start the reletting process immediately. Advertise the property, begin conducting inspections, and process applications as they come in. Remember your duty to mitigate — any delay in reletting that is within your control will reduce what you can claim.

Third, calculate the reletting costs once you know the vacancy period. Work out how far through the fixed term the tenant was when they vacated, identify the applicable cap, and compare it to the actual rent lost. The lower figure is the reletting cost.

Fourth, conduct the exit inspection and complete the Exit Condition Report (Form 14a). Any damage beyond fair wear and tear is a separate claim from reletting costs.

Fifth, lodge the bond refund. If you and the tenant agree on the split, submit an agreed Refund of Rental Bond (Form 4). If you disagree, lodge a Dispute Resolution Request (Form 16) with the RTA.

If an early exit turns into a money or damage dispute, our QLD rental bond guide and QLD condition report guide guides explain the evidence side. If the tenancy ends through a formal notice instead, see our QLD eviction notice guide guide.

Common Mistakes Landlords Make

Charging a Flat “Break Lease Fee”

Some landlords include a clause in their tenancy agreement imposing a flat fee — say 6 weeks rent — for any early termination. Under Section 357A(2)(a), any reletting costs term that does not comply with the statutory framework is void. A flat fee that exceeds the caps, or that does not account for the “lesser of” calculation, is unenforceable.

Not Advertising Promptly

Your duty to mitigate means you must start reletting as soon as reasonably possible after the tenant gives notice or vacates. If you wait two weeks before listing the property, QCAT can reduce your claim by the period of unnecessary delay. The vacancy clock starts when the tenant hands over possession — but your obligation to mitigate starts as soon as you know the tenant intends to leave.

Claiming Both Reletting Costs and Full Rent to End of Term

The reletting costs framework in Section 357A is your remedy for a tenant breaking the lease. You cannot claim the capped reletting costs and also claim rent for the remainder of the fixed term. The “lesser of” calculation already accounts for the actual rent lost — once a new tenant starts, your loss ends.

Ignoring the DFV Exemption

If a tenant provides a Form 20 with supporting evidence, they are exercising a lawful right under the Act. You cannot charge reletting costs, and attempting to do so through a bond claim will fail at dispute resolution or QCAT. Treat the DFV exit as a lawful termination, not a break lease.

Rejecting Reasonable Applicants

If you receive applications from suitable tenants but reject them without good reason — or set unreasonably high standards to keep the property vacant — this undermines your mitigation duty. QCAT will consider whether you acted reasonably in processing applications when assessing your compensation claim.

Frequently Asked Questions About Breaking a Lease in QLD

How much can a landlord charge for breaking a lease in QLD? It depends on how far through the fixed term the tenant is and how long the property sits vacant. For fixed terms of 3 years or less, the maximum is the lesser of a capped amount (4 weeks rent if less than 25% expired, down to 1 week’s rent if 75% or more expired) or the actual rent lost until a new tenant starts. You cannot charge more than the cap, even if the property takes longer to relet. This framework is set out in Section 357A of the RTRA Act 2008.

Can a tenant break a lease without paying anything in QLD? If the tenant finds a reason that is permitted under the Act — such as a QCAT order for excessive hardship, or ending their interest due to domestic and family violence — they may not be liable for reletting costs at all. If the tenant simply breaks the lease without a lawful reason, they are liable for reletting costs, but the amount may be minimal if the property is relet quickly. The “lesser of” calculation means the tenant only pays for the actual vacancy period, up to the cap.

What is the landlord’s duty to mitigate? Under Section 362 of the RTRA Act, you must take all reasonable steps to mitigate your loss. This means advertising the property promptly, conducting inspections, and processing applications without unreasonable delay. You cannot sit back and let the vacancy accumulate — if QCAT finds you failed to mitigate, it will reduce your compensation accordingly. Section 421 requires QCAT to specifically consider whether you complied with this duty.

Does the reletting costs clause need to be in the tenancy agreement? Yes. Section 357A(1) says the tenancy agreement “may include a term” — if it doesn’t include one, you cannot claim reletting costs under this provision. The standard RTA General Tenancy Agreement (Form 18a) includes this clause. If you’re using a non-standard agreement, check that it contains a compliant reletting costs term.

What if my agreement was signed before the 2024 changes? Section 586 of the RTRA Act provides a transitional rule. If your agreement was signed before 30 September 2024 and included a reletting costs term that complied with the old law (requiring “reasonable costs”), that term is taken to comply with the new Section 357A(1). The new caps apply automatically — you don’t need to issue a new agreement.

Can I claim reletting costs from the bond? Yes. You can claim reletting costs as part of the bond refund process. If the tenant agrees, submit an agreed Refund of Rental Bond (Form 4). If there’s a dispute, lodge a Dispute Resolution Request (Form 16) with the RTA. You’ll need evidence of the vacancy period and your efforts to relet.

What happens if a tenant breaks a periodic agreement? Breaking a lease only applies to fixed-term agreements. A tenant on a periodic agreement can end the tenancy by giving 2 weeks written notice using a Notice of Intention to Leave (Form 13). There are no reletting costs for ending a periodic agreement — the tenant simply gives notice and leaves.

Can a tenant who is experiencing domestic violence break a lease without penalty? Yes. Section 357A(2)(b) explicitly excludes tenants who end the agreement or their interest in it after experiencing domestic violence. The tenant uses a Notice Ending Tenancy Interest (Form 20) with supporting evidence. They are not liable for reletting costs, and they can vacate immediately — though they must give 7 days notice and pay rent until the end of that notice period.

What if the tenant just stops paying rent and doesn’t leave? That is not a break lease — it’s a rent arrears situation and a breach of the tenancy agreement. You would issue a Notice to Remedy Breach (Form 11) for the unpaid rent, followed by a Notice to Leave (Form 12) if the breach is not remedied. The break lease and reletting costs framework only applies when the tenant actually hands over vacant possession before the end of the fixed term.

Can QCAT award more than the statutory caps? The reletting costs under Section 357A are capped as described above. QCAT can also order compensation under its general powers in Section 420, but Section 420(3) says an order in favour of a landlord for reletting must not exceed the reletting costs. QCAT cannot override the caps.

Summary

When a tenant breaks a fixed-term lease in Queensland, the amount you can recover as a landlord is governed by a structured framework in the RTRA Act. The reletting costs are capped based on how far through the term the tenant is, and capped again by the actual vacancy period — you always get the lesser of the two amounts. You have a legal duty to mitigate by reletting promptly. The bond can be used to cover the costs, but disputes go through the RTA and then QCAT.

For self-managing landlords, the most important things are: make sure your tenancy agreement includes a compliant reletting costs clause, start advertising the moment you know the tenant is leaving, document everything, and don’t try to charge more than the statutory caps allow. The system is designed to limit your recovery to your actual loss, and QCAT will enforce that.

Related guides for QLD landlords

If you are building out the full landlord workflow for this state, these guides connect this page to the rest of the tenancy process.

Same-state guides

• QLD lease agreement guide
• QLD rental bond guide
• QLD condition report guide
• QLD eviction notice guide
• QLD rent increase guide

Compare break lease guides in other states

• WA break lease guide
• NSW break lease guide
• VIC break lease guide
• SA break lease guide