Lease Break & Lease Transfer

Moving Out Early or Transferring Your Lease?

Your Guide to Lease Breaks and Lease Transfers in Victoria
At Raine & Horne Blackburn, we understand that sometimes plans change — you might need to
move out early, or someone else might want to take over your lease. There are two main ways to
do this under Victorian tenancy law: a Lease Break or a Lease Transfer. Here’s what they mean
and how they work. 

1. Lease Break – Ending Your Lease Early
A lease break means you’re ending your fixed-term lease before the agreed finish date. You can do
this, but you’ll need to cover the reasonable costs your rental provider faces because of the early
move-out.

What You’ll Need to Do 

1. Let us know in writing that you plan to break your lease.
2. Keep paying rent until a new renter moves in or your lease end date arrives — whichever
happens first.
3. Cover reasonable expenses, such as advertising, letting fees, and any rent lost during the
vacancy period.

Example: If your rent is $500 per week and it takes 2 weeks to find a new tenant, you may need
to cover those 2 weeks’ rent plus advertising and leasing costs. 

2. Lease Transfer – Letting Someone Take Over Your Lease

A lease transfer (also called a lease assignment) means you’re not ending your lease — you’re
handing it over to another person who agrees to take on all the same terms and responsibilities.
It’s like passing the lease to a new renter who steps into your place and continues the same
agreement.

However, it’s not enough to simply email the details of a prospective new tenant.
Under the Residential Tenancies Act 1997 (Vic), you must first obtain the rental provider’s written
consent before allowing anyone else to move in or take over the lease.
Keeping someone in the property without written consent from the rental provider is considered a
breach of duty under the Act.

How It Works

1. You find a suitable person who wants to take over your lease.
2. Send us a written request with their details so we can start the approval process.
3. The new tenant will complete a full rental application and provide ID, income proof, and
references.
4. We’ll review and confirm approval with the rental provider.
5. Once approved, all parties sign a Lease Transfer Agreement, and the bond is updated with the
RTBA.

Lease Break vs Lease Transfer – What’s the Difference?

Frequently Asked Questions

Do I lose my bond if I break the lease?

Not automatically. Your bond can only be used to cover unpaid rent, damages, or agreed
break-lease costs. Any remaining amount is refunded through the RTBA.

How long does it take to find a new renter?

It depends on the market and property type. We start advertising promptly, but finding a new renter
can take anywhere from a few days to a few weeks.

Can I find someone myself to take over the lease?

Yes, but the new renter must apply through our office and be approved by the rental provider. The
lease transfer isn’t valid until all paperwork is signed.

Is there a fee for a lease break or transfer?

Yes — you may be charged reasonable costs such as advertising or re-letting fees. We’ll always
provide a clear breakdown before proceeding.

What happens if I just move out without telling anyone?

You’ll still be responsible for rent and costs until the end of the lease or until a new renter is found.
It’s always best to contact us early so we can help manage the process properly.

What happens if we have more than one person on the lease and just one of them want to transfer
the lease?

If multiple renters are on the same lease then everyone on the lease are collectively responsible for
rent and costs until the end of the lease or until a new renter is approved by the rental provider and transfer agreement is signed.

Need Help?
We’re here to make the process smooth and stress-free. If you’re thinking of breaking or
transferring your lease, you must send an email or click the email link to the following Email ID.

[email protected]