Breaking a Lease – What Tenants Need to Know in New Zealand

Breaking a lease can feel stressful, but the Residential Tenancies Act sets clear rules about what tenants can and cannot be charged, and what landlords must do when a tenant needs to end a fixed‑term tenancy early. This guide explains your rights, your responsibilities, and the limits on what a landlord can demand.

Can You Break a Fixed‑Term Tenancy?

A fixed‑term tenancy is a binding agreement, but it can still be ended early in three lawful ways:

1. Mutual Agreement

You and the landlord can agree to end the tenancy early. This must be:

• In writing
• Clear about the end date
• Signed or confirmed by both parties

A landlord cannot force you to stay if they agree to release you.

2. Assignment (Transferring the Tenancy)

You can ask the landlord to assign the tenancy to someone else. The landlord:

• Must consider the request fairly
• Cannot refuse without a good reason
• Can only charge reasonable costs (e.g., credit checks, advertising)

They cannot charge:

• Letting fees
• “Break fees”
• Admin fees
• Any amount that is not an actual, reasonable cost

3. Hardship Application to the Tenancy Tribunal

If staying in the tenancy would cause severe hardship, you can apply to the Tribunal to end it early. The Tribunal will consider:

• Your situation
• The landlord’s situation
• Whether ending the tenancy is fair

They may order compensation either way, depending on the circumstances.

What Costs Can a Landlord Charge?

A landlord can only charge actual, reasonable costs directly related to assigning the tenancy. Examples of reasonable costs:

• Credit check fee
• Advertising costs (with receipts)

Examples of illegal charges:

• Letting fees
• Break fees
• Admin fees
• “Re‑letting fees”
• Fixed amounts with no receipts
• Charging for their time

If the landlord tries to charge anything unreasonable, you can challenge it.

What Happens With Rent?

You must continue paying rent until:

• A new tenant takes over, or
• The agreed early end date arrives, or
• The Tribunal ends the tenancy

A landlord cannot double‑dip by collecting rent from you and a new tenant at the same time.

Bond and Final Inspection

Your bond is handled the same way as any other tenancy ending:

• A final inspection must be done
• Any deductions must be lawful and agreed
• The bond refund form must be signed by both parties

A landlord cannot withhold bond simply because you broke the lease.

Common Illegal Landlord Behaviour

These are red flags:

• Charging letting fees
• Charging “break fees”
• Refusing assignment without a valid reason
• Delaying advertising to keep charging you rent
• Demanding you find the replacement tenant yourself
• Threatening to keep the bond
• Refusing to confirm costs in writing

All of these can be challenged.

What Tenants Should Do First

• Put your request to end the tenancy in writing
• Ask the landlord to confirm whether they agree to early termination or assignment
• Request a list of actual, reasonable costs
• Keep copies of all communication
• Contact Tenancy Services if the landlord becomes unreasonable

Email Template: Requesting to Break a Lease

Copy and Paste This Email

Hi [Landlord/Property Manager],

I am writing to request an early end to my fixed-term tenancy at [address].

Could you please confirm whether you agree to:

• Ending the tenancy early by mutual agreement,

or

• Assigning the tenancy to a new tenant

If assignment is required, please provide a list of any actual and reasonable costs, as required under the Residential Tenancies Act.

Once I have this information, I can proceed with the next steps.
Thank you,
[Your Name]