The Complete Guide to Ending a Tenancy: 7 Steps for Property Managers

Ending a tenancy requires property managers to follow precise steps to ensure a smooth, legally compliant process. Each stage is essential for a successful handover, from issuing the correct notice to handling bond refunds and preparing the property. Clear communication and a structured approach help avoid disputes, protect property standards and build positive tenant relationships for future leases.

1. Ending a Tenancy Agreement: Legal Steps and Grounds

Ending a tenancy agreement involves specific legal steps and requirements, which vary across Australian states. Each jurisdiction provides guidelines on ending both fixed-term and periodic tenancies. Understanding these rules helps property managers and tenants avoid disputes and stay compliant.

Grounds for Ending a Tenancy Agreement

A tenancy agreement can be ended under certain legally recognised grounds. These are the main reasons:

• End of a Fixed Term: A fixed-term agreement concludes on its specified end date. In most states, either the property manager or tenant must provide written notice before this date. If no notice is given, the agreement may automatically convert to a periodic tenancy, though the rules for this transition vary by state.
• Mutual Agreement: Tenants and property managers may mutually agree in writing to end the tenancy early. Both parties must consent to the end date and any terms for compensation or conditions. Some states may require tribunal involvement if there are additional considerations.
• Unremedied Breach: If a tenant breaches the agreement by failing to pay rent, the property manager may issue a Notice to Remedy Breach. The tenancy may be terminated if the tenant does not resolve the breach within the specified period (often 7–14 days). Specific notice periods differ based on the type of breach and state requirements.
• Non-Liveability: If a property becomes unfit for habitation due to natural disasters or severe damage, either party may end the tenancy. Some states require that notice be given within a specified timeframe, often within one month, to comply with local regulations.
• Sale of Property: For periodic tenancies, a property manager may end the agreement if the property is sold with vacant possession. For fixed-term agreements, the tenancy typically continues until the end date unless both parties agree to an early termination.

Special Circumstances

Certain unique circumstances may allow tenants to end a tenancy agreement before its conclusion.

• Excessive Hardship: Tenants facing serious hardship may apply to a tribunal to end the tenancy early. This process requires evidence, such as medical or financial documentation, and may involve compensation for the property manager.
• Death of a Sole Tenant: If a sole tenant passes away, their representative can end the tenancy by giving written notice. In cases without notice, the tenancy typically ends within one month of the tenant’s passing, though this period may vary by state.

Notice Requirements by Termination Type

Each state has specific notice periods based on the reason for termination. Following these requirements helps ensure compliance and reduces the risk of disputes.

2. Issuing the Right Notice: Timing and Compliance

Issuing the correct notice at the right time is essential for legally ending a tenancy. The type of notice and required notice period depend on the reason for ending the tenancy and the type of agreement. Following these rules helps property managers avoid disputes and ensures compliance with tenancy laws.

Common Types of Notices and When to Use Them

Different notices apply to specific situations, and understanding which notices to issue—and when—is essential for compliance.

• Notice to Leave for End of Fixed Term: When a fixed-term tenancy is ending, property managers must give written notice to prevent the lease from automatically rolling over into a periodic agreement. Most states require a minimum of 2 months’ notice before the lease end date, but it’s important to check specific state guidelines.
• Notice to Remedy Breach: Property managers may issue this notice when a tenant breaches the agreement, such as by failing to pay rent. The tenant then has a specified period to address the issue (usually 7 to 14 days). If the tenant fails to remedy the breach, a Notice to Leave can be issued.
• Notice of Intention to Leave: Tenants wishing to leave before the agreement’s end due to exceptional circumstances, such as excessive hardship or non-liveability, must issue this notice. Notice periods range from 1 to 4 weeks, depending on the grounds and state regulations.
• Notice for Property Sale: For periodic tenancies, a property manager can issue a Notice to Leave if the property is being sold with vacant possession. The notice period varies by state, generally ranging from 30 to 90 days. Note: In some states, tenants may have the right to end the tenancy early if the property is listed for sale within the first two months of their tenancy, provided they were not informed beforehand.

Importance of Compliance with Notice Rules

Each state has specific requirements for issuing notices and following notice periods. Property managers should use the correct forms and provide accurate information to avoid disputes. Always check state guidelines to confirm requirements; some states mandate specific language or forms. Precise timing and compliance with notice requirements are crucial for a smooth transition and help prevent potential legal issues.

3. Preparing the Property for Tenant Departure

Preparing the property for a tenant’s departure involves several vital steps to ensure a smooth handover and protect the property’s condition. Proper planning helps avoid disputes, facilitates the bond refund process, and ensures the property is ready for the next tenant.

Confirming Expectations with the Tenant

Before the tenant moves out, it’s essential to set clear expectations about what needs to be done.

• Vacate Date: Confirm the agreed vacate date with the tenant and outline any requirements for moving out on time. Remind them that they are responsible for rent payments until this date.
• Providing a Checklist: Give tenants a checklist outlining tasks they need to complete before vacating. This checklist should cover cleaning, repairs, returning keys, and any other expectations. It may also include specific instructions like carpet cleaning or pest control if pets were kept on the property.
• Exit Condition Report: Arrange a time to conduct an exit condition inspection with the tenant. This step ensures that both parties agree on the property’s condition and that there is a mutual understanding of any issues that need to be addressed.

Completing the Exit Condition Report

The exit condition report is an essential document that records the state of the property at the end of the tenancy. Property managers should compare it closely with the entry condition report to identify any differences.

• Documenting Property Condition: During the inspection, note any damage or areas that require cleaning. Include photos for clear visual evidence, which can be helpful if a bond dispute arises.
• Checking for Fair Wear and Tear: Distinguish between fair wear and tear and actual damage. Laws require that tenants only be charged for actual damage or excessive wear beyond regular use.
• Finalising with the Tenant: Review the findings of the exit condition report with the tenant. Discuss any necessary bond deductions or actions to return the property to its original state. This open communication can prevent misunderstandings.

Returning Keys and Access Devices

The tenant must return all keys, access cards, and remotes issued during the tenancy.

• Inspecting Returned Items: Confirm that all original keys and devices are returned. Missing items may result in deductions from the bond.
• Bond Claim Process: Explain the bond refund process and any possible deductions with the tenant. Providing this information upfront makes the bond claim process more straightforward and helps avoid disputes.

4. Handling Rental Bonds and Condition Reports Efficiently

Efficient management of rental bonds and condition reports is essential for a smooth end-of-tenancy process. Properly handling these steps helps avoid disputes and ensures property managers and tenants meet their obligations.

The Bond Refund Process

The rental bond, held by a state authority, acts as security against unpaid rent, damages, or cleaning expenses. The bond can be fully refunded or partially deducted if necessary at the tenancy’s end.

• Initiating the Bond Refund: Property managers or tenants can start the bond refund process after completing the exit inspection and condition report. If no deductions are needed, the refund process is straightforward. If deductions are necessary, both parties should aim to reach an agreement on the amount.
• Documenting Deductions: Bond deductions may apply if there are unpaid rent, property damage, or cleaning issues beyond fair wear and tear. Provide clear evidence, like photos, invoices, or receipts, to support any deductions. Open communication about these deductions with the tenant helps prevent disputes.

Entry and Exit Condition Reports

Condition reports are essential for assessing the property’s state at the beginning and end of a tenancy. Detailed, accurate reports support fair and transparent bond claims.

• Creating an Entry Condition Report: At the start of the tenancy, complete a detailed entry condition report that includes photos of each room and key items. Have the tenant review and sign the report, agreeing to the documented property condition.
• Conducting an Exit Condition Report: At the tenancy’s end, conduct a thorough exit inspection. Compare the exit report with the entry report to identify any differences, and document these changes with photographic evidence. This process helps clarify any bond claims and reduces misunderstandings.

Clear Communication and Dispute Resolution

Transparency around bond expectations and the condition report process can reduce the likelihood of disputes. Establishing clear communication with the tenant early on helps build trust.

• Providing Copies of Condition Reports: Ensure that both the entry and exit condition reports are shared with the tenant. This transparency allows tenants to understand any claims made against their bond.
• Explaining Bond Dispute Resolution Options: If the tenant disputes any deductions, explain the dispute resolution process. Most states offer conciliation services, allowing both parties to mediate a fair solution. This step is recommended before pursuing a tribunal, as it often leads to quicker, less costly outcomes.

5. Managing Disputes and Ensuring Smooth Transitions

Disputes at the end of a tenancy often stem from disagreements over bond refunds, property condition, or unfulfilled obligations. A structured, transparent approach to handling disputes promotes fair resolutions and preserves a professional relationship with tenants.

Open Communication and Self-Resolution

The first step in managing disputes is open communication. Many issues can be resolved directly by addressing tenant concerns and working toward a fair outcome.

• Discussing Bond Deductions: If deductions are proposed, explain each deduction clearly. Share supporting evidence, such as receipts and photos, and compare these with the entry condition report. Transparency can help tenants understand the reasons for deductions and reduce misunderstandings.
• Reviewing the Exit Condition Report Together: Go through the exit condition report findings with the tenant. Discuss any property damage, cleaning requirements, or other factors that could impact the bond. This approach ensures the tenant is informed and encourages a mutual agreement on the property’s condition.

Mediation and Conciliation Services

If issues can’t be resolved directly, most states offer tenancy conciliation services as a next step. Conciliation, facilitated by the state’s residential tenancy authority, is typically recommended before taking disputes to a tribunal.

• Applying for Conciliation: Either the tenant or property manager can apply for conciliation through the relevant state authority. This confidential process helps both parties work toward a solution without a formal hearing. Conciliation also tends to be quicker and more cost-effective than tribunal proceedings.
• Notice of Unresolved Dispute: If conciliation doesn’t resolve the issue, the authority may issue a “Notice of Unresolved Dispute,” which allows the parties to escalate the matter to a tribunal if necessary.

Taking the Dispute to Tribunal

When conciliation does not succeed, the next step may be to apply to a tenancy tribunal for a binding decision. Each Australian state has a tribunal, such as QCAT in Queensland or VCAT in Victoria, which handles tenancy disputes.

• Submitting a Tribunal Application: If the dispute remains unresolved, either party can file a tribunal application. Including all supporting evidence—such as condition reports, receipts, and communication records—is essential to strengthen the case.
• Understanding Tribunal Outcomes: The tribunal reviews all information and makes a final decision. This decision settles any disputes over bond deductions, property damage, or other costs.

6. Navigating Special Circumstances and Legal Exceptions

In certain cases, ending a tenancy requires careful adherence to special legal processes. Australian tenancy laws provide specific exceptions for situations involving hardship, tenant death, and property abandonment. Understanding these exceptions helps property managers navigate complex cases lawfully and respectfully.

Ending a Tenancy Due to Hardship

When tenants or property managers experience significant hardship, they may apply to a tribunal for early termination. This option is available if continuing the tenancy would impose undue financial or personal strain.

• Applying for Early Termination: Tenants or property managers can submit a hardship application to the tribunal, providing supporting evidence such as financial records or medical documents. If the tribunal approves, it will set a new end date for the tenancy.
• Compensation for Early Termination: Even with tribunal approval, the party seeking early termination may need to compensate the other party. This could include unpaid rent, re-letting fees, or other costs associated with ending the agreement.

Managing Tenancy After a Tenant’s Death

In the event of a tenant’s death, tenancy laws allow for special handling to ensure a respectful conclusion of the lease without following standard termination rules.

• Sole Tenant’s Death: If a sole tenant passes away, their legal representative or next of kin can end the tenancy by providing written notice. If no notice is given, the tenancy generally ends within one month of the tenant’s passing, though this period may vary by state.
• Death of a Co-Tenant: If one co-tenant dies, the remaining tenants can continue or end the tenancy. If they opt to end the tenancy, they must provide notice according to state requirements or seek tribunal approval if hardship applies.

Property Abandonment

Property abandonment occurs when tenants vacate without notice, fail to pay rent or cease communication with the property manager. Each state has specific rules for handling abandonment to ensure compliance.

• Confirming Abandonment: Before reclaiming possession, property managers must confirm abandonment, which may involve inspecting the property, speaking with neighbours, and verifying unpaid rent.
• Issuing an Abandonment Notice: Property managers should issue a formal notice to reclaim possession once abandonment is confirmed. In some states, tribunal approval may be required, so it’s essential to check local regulations to ensure compliance.

Legal Protections Against Retaliatory Evictions

Australian tenancy laws protect tenants from retaliatory evictions, which occur when a property manager seeks to end a tenancy because the tenant exercised their legal rights, such as requesting repairs or lodging complaints.

• Recognising Retaliation: Property managers must ensure that tenancy terminations are based on legitimate, documented reasons and follow all legal procedures. If tenants suspect they are facing eviction in retaliation, they can file a complaint or apply to the tribunal for support. Tenants may seek assistance through the tribunal to challenge the eviction, helping to ensure fair treatment under the law.

7. Post-Tenancy Steps for Property Managers

After a tenancy ends, property managers have several essential tasks to finalise and prepare the property for new occupants. These steps ensure that the property remains in good condition, that records are accurate, and that any outstanding issues are resolved.

Organising Tenant Files and Documentation

Accurate record-keeping is essential for effective tenancy management, supporting property managers in addressing future inquiries or claims.

• Archiving Tenant Records: Maintain secure copies of all key documents, including the lease agreement, entry and exit condition reports, bond claims, and communication records. Ensure that files are stored in compliance with privacy laws to protect tenant information.
• Organising Digital Records: Whenever possible, store digital copies of documents. Digital storage not only reduces physical clutter but also safeguards records from potential damage or loss, enhancing data security and accessibility.

Inspecting and Preparing the Property

Preparing the property for new tenants involves repairs, cleaning, and any necessary maintenance. These steps maintain the property’s appeal and help avoid complaints from future tenants.

• Conducting Repairs and Maintenance: Check the property for any maintenance needs, including plumbing, electrical, and structural repairs. Address any outstanding issues noted in the exit report.
• Arranging for Cleaning: Ensure the property is thoroughly cleaned before new tenants move in. This may include professional carpet cleaning and pest control if pets previously occupied the property.
• Updating Fixtures and Appliances: Inspect fixtures and appliances to confirm they are in working order. Consider minor updates if needed to improve the property’s appeal.

Updating Listings and Advertising the Property

Once the property is ready, promote it to attract quality tenants. An updated listing increases interest and speeds up the leasing process.

• Creating an Updated Listing: Write a fresh property description and take new photos if updates have been made. Highlight any improvements or features that set the property apart.
• Scheduling Open Inspections: Arrange open inspections to allow prospective tenants to view the property. Ensure the property is well-presented, as this helps attract more applications.

Reviewing Property Management Practices

After each tenancy, reviewing management practices can help improve processes and enhance tenant satisfaction.

Gathering Feedback: If tenants provided feedback at the end of their tenancy, consider their insights. Continuous improvement strengthens property management processes and promotes positive tenant relationships.

Evaluating Challenges: Reflect on any issues encountered during the tenancy. Determine whether adjustments to policies, communication, or record-keeping could prevent similar problems in the future.

Frequently Asked Questions about Ending a Tenancy 

Smooth Transitions and Lasting Success

Carefully managing the end of a tenancy keeps relationships strong and protects your property. Clear communication, accurate records, and organised processes help prevent disputes and set the stage for a smooth handover. By following each step—from issuing the right notices to handling bonds and preparing the property—you create a positive experience for tenants and a solid foundation for future tenancies. A structured approach ensures ongoing success and maintains the value of your property.