Canceling lease renewal before it commences

Hi guys!

Just want to ask simple question that can i cancel 1 year fixed term lease renewal starting from July this year?

Im currently living in this property and signed 1 year lease extension on last Feb. I planned to live long but changed mind if its possible to break the extension.

Thank you!!

 

You need @thatbum to answer.

I'd say you should be able to but you may have to meet some of the landlord's costs. For example, the landlord has probably paid a reletting fee to the PM.

 

Why was the lease renewal signed such a long time in advance? Is this in VIC?

 

It might be a simple question, but there definitely isn't a simple answer. A lot more information is required.

I guess if you want to get really simple, then in theory its probably a binding contract and "cancelling" it might mean you owe things like break lease costs.

But there's probably a million variables so who knows.

 

There was routine inspection on Feb and as soon as it finishes they sent me electronic document for lease extension. I don’t know why they did so early but anyway... yes im in VIC.

 

You would be able to break your lease, but depending on the type of property it may not be a good idea right now.

Unless severely impacted by the current state of affairs, you would still be liable for lease break costs and rent until a new tenant is found. Which if it’s a property in an area that has slowed this could potentially cost a lot of money.

If you’re looking to leave in July when your existing lease ends, speak with the agent/owner and see what they say. Because it hasn’t commenced they may be happy enough to let you leave in July.

 

I guess they wanted to lock in an extension asap, I would definitely explain your reasons for not wanting to extend, see if they'll just let you go, or otherwise might have to negotiate an outcome.