Breaking a lease in Melbourne involves financial implications for the tenant, typically covering the landlord’s costs associated with re-letting the property. As of December 2025, these costs are determined by the Residential Tenancies Act 1997 and can vary.
Currently in Melbourne, the primary cost to break a lease is advertising the property for re-letting. Landlords can also claim for a reasonable period the property remains vacant. In 2026, expect advertising costs to range from $300 to $800, depending on the platform and reach. Vacancy costs are calculated at the weekly rent amount. For example, if the weekly rent is $600 and it takes four weeks to find a new tenant, the vacancy cost would be $2,400. Importantly, the tenant is not responsible for costs if the landlord re-lets the property quickly. In the Melbourne Eastern Suburbs, where demand for rental properties remains strong – particularly family homes near schools in areas like Balwyn and Doncaster – properties generally re-let relatively quickly. However, seasonal factors and property condition can influence vacancy periods. Tenants should also be aware that a fixed-term lease broken early may incur additional penalties as outlined in the lease agreement.
Understanding these potential costs is crucial for tenants considering breaking a lease in Melbourne in 2026, and seeking legal advice is always recommended.