When a renter is looking to end a fixed-term agreement early they may be required to pay reletting fees to cover costs incurred by the rental owner in reletting the property. Previously in Queensland the rental laws provided little guidance about what was considered a reasonable cost. In June 2024, new rental laws came into effect in Queensland, with further changes beginning in September 2024. Here is what you need to know about the reletting fees under the 2024 law changes.
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Capped Reletting Costs
Reletting costs have served as a barrier for renters moving to more suitable or affordable housing. Often these fees deterred renters from agreeing to long-term tenancy agreements as there was no certainty around the costs if they wished to end the tenancy. From 30 September 2024, changes to the laws mean that reletting costs are limited based on the amount of time left on a lease.
How Do the New Fees Work?
Lease Agreements of Less Than 3 Years
For lease agreements under 3 years and signed on or after 30 September 2024, the reletting costs will vary depending on how much of the agreed lease has passed at the time that the tenant moves out, or the rent owned for the time between when a new tenant moves in. Here is a breakdown of how the costs look:
- If less than 25% of the lease agreement has expired than the reletting fees will be 4 weeks rent, or the rent owed for the time it takes for a new tenant to move in, whichever is less.
- If 25% but less than 50% of the lease agreement has expired than the reletting fees will be 3 weeks rent, or the rent owed for the time it takes for a new tenant to move in, whichever is less.
- If 50% but less than 75% of the lease agreement has expired than the reletting fees will be 2 weeks rent, or the rent owed for the time it takes for a new tenant to move in, whichever is less.
- If 75% or more of the lease agreement has expired than the reletting fees will be 1 weeks rent, or the rent owed for the time it takes for a new tenant to move in, whichever is less.
Lease Agreements Of 3 Years or More
If the lease agreement is over 3 years in duration and signed on or after 30 September 2024, reletting costs are calculated based on the lower of the below methods:
- The reletting fees owed are 1 months’ rent for each 12-month period remaining on the lease, up to a maximum amount equal to 6 months’ rent.
- The reletting fees owed are the rent that would be payable until the new agreement begins after the premises is relet.
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