Lease Management Guide — Renewals, Rent Reviews & Break Lease (2026)

Standard lease terms:

• Initial lease: 12 months (standard for most tenancies)
• Renewal available: 6 or 12-month extensions
• Month-to-month: Automatically applies if neither party acts after lease expiry

Our renewal process:

1. We contact the tenant 60+ days before lease expiry to discuss renewal
2. Rent review is conducted based on current market data
3. New lease terms proposed to both landlord and tenant
4. If agreed, new lease is signed with updated terms
5. If tenant declines, vacancy notice period applies

Rent review methodology:

• Compare current rent against similar properties in the area
• Factor in recent improvements or renovations
• Consider current vacancy rates and market conditions
• Recommend achievable increase (typically 3–5% annually in stable markets)

Important: Victoria requires landlords to give 60 days' notice for any rent increase. Increases must be justified by market conditions — excessive increases can be challenged at VCAT.

A break lease occurs when a tenant wants to end their fixed-term lease before the expiry date. This is one of the most common landlord concerns.

Tenant obligations when breaking lease:

• Continue paying rent until a new tenant is found (or lease end date, whichever is earlier)
• Pay re-letting fees (advertising and agent costs)
• Pay reasonable costs incurred by the landlord

Our break lease process:

1. Tenant provides written notice of intention to break lease
2. We immediately begin advertising for a replacement tenant
3. Property is listed on REA and our internal tenant database
4. Open inspections scheduled within 1 week
5. Applications processed using our 4-point screening system
6. New lease signed with replacement tenant
7. Outgoing tenant's liability ends when new tenant's lease begins

Typical break lease costs to tenant:

• Re-letting fee: 1 week's rent
• Advertising: $217–$280 + GST
• Rent until replacement tenant found: Usually 2–4 weeks

Landlord protection: Because we start advertising immediately and have an existing tenant database, we typically find replacement tenants within 2–3 weeks. This minimises your vacancy period and the outgoing tenant's liability.

For newly purchased properties transitioning to rental management, the settlement and handover process is critical:

Pre-settlement (2–4 weeks before):

• Leasing Authority (LA) must be signed
• Our team conducts pre-settlement inspection to scope renovation needs
• Trades are pre-booked for immediate post-settlement work
• Rental appraisal prepared for marketing

Settlement day:

• Keys collected and registered in our system
• Utilities transferred to landlord's name (required before any renovation work)
• Property secured and alarm codes updated

Post-settlement:

• Renovation begins within 48 hours (if needed)
• Safety checks scheduled
• Marketing photography and listing preparation
• Tenant applications open 5 days before completion

Late settlement penalties: If settlement is delayed, daily penalties apply at approximately $183–$187/day (calculated at 12–15% per annum of the purchase price). Standard violation period before contract termination: 14 days.

Existing tenants (lease transfer):

• If buying a tenanted property, we conduct a lease review
• Safety check validity is assessed (transfer if within timeframe, otherwise re-check)
• Condition report prepared as new baseline
• Tenant relationship established through our Ongoing Team