If a tenant/resident breaks a tenancy agreement and decides to leave early, they may be responsible for reletting costs.
For fixed-term tenancy agreements entered into on or after 30 September 2024, you can use the reletting costs calculator to estimate reletting costs.
What are reletting costs?
Reletting costs are used by a property manager/owner to support the reletting of a property (finding a new tenant) when a tenant/resident ends a tenancy agreement early. Reletting costs are calculated based on how much of a fixed-term tenancy agreement remains.
Reletting costs do not include any outstanding amounts such as unpaid rent in arrears, service charges such as water or gas, or damage to the property where a tenant/resident is still accountable.
Any special terms relating to reletting costs cannot contradict the criteria set out in the Residential Tenancies and Rooming Accommodation Act 2008 (the Act) for calculating costs.
Mitigating loss to tenants
When looking to replace a tenant/resident that has ended an agreement early, property managers/owners must take all reasonable steps to mitigate the loss or expense to the tenant as per section 362 of the Act.
Reasonable steps could include advertising the property soon after the tenant/resident advises they are ending the agreement and showing the property to prospective tenants/residents.
When a property is not intended to be relet
If a property is not intended to be relet after a tenant/resident has ended an agreement early, then reletting costs cannot be calculated. For example, if the owner decides to move into the property because the agreement ended early, or sell the property without finding a new tenant, then reletting fees cannot be calculated because the property is not intended to be relet.
In this situation, the property manager/owner and tenant/resident may talk to each other and agree to reasonable compensation. The duty to mitigate loss still applies.
If an agreement is ended with a valid reason
If a tenant/resident ends an agreement for a valid reason, reletting costs cannot be calculated.
For a full list of valid reasons for ending a tenancy, see our ending a tenancy agreement page.
Advertising and other costs
A property manager/owner cannot charge a tenant/resident advertising costs or other fees associated with ending an agreement early (such as one week’s rent plus GST as a ‘relet fee’). The reletting costs calculated using the method below are the only costs that can be claimed for reletting a property.
Calculating reletting costs
For fixed-term tenancy agreements entered into on or after 30 September 2024, reletting costs are calculated based on either:
- how much of the agreement is left when the tenant/ resident ends it early, or
- the rent payable until a new tenant/ resident moves in.
The lesser of the two amounts can be charged as a reletting costs. A tenant/resident cannot be charged any other reletting costs.
Reletting costs calculator
Due to the complexity of individual tenancy arrangements, the Residential Tenancies Authority (RTA) does not provide specific advice on reletting cost calculations. Costs are best calculated between parties using the calculations set out in the legislation.
To support calculations, we have created the reletting costs calculator below. This tool enables tenants/residents and property managers/owners who entered into an agreement on or after 30 September 2024 to independently calculate reletting costs based on their specific lease terms and rental agreements. The tool only estimates reletting costs where the tenant/resident hands over vacant possession of the property before the end of their fixed-term agreement.
If the rent until a new tenant/resident moves in is less than the amount worked out with the calculator, this should be charged as the reletting costs instead.
By using this calculator, you acknowledge and agree to the terms and limitations below.
Reletting costs disputes
If there is a dispute about reletting costs that cannot be self-resolved through mutual agreement, the matter may proceed as follows:
- Bond claim dispute: the dispute can be addressed through the bond claim process at the end of the tenancy.
- Notice of unresolved dispute: if the dispute is not resolved during conciliation, the RTA will issue a Notice of unresolved dispute.
- QCAT resolution: the unresolved dispute will then be referred to the Queensland Civil and Administrative Tribunal (QCAT) for a formal decision.