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Topic
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My landlord is asking me to sign a lease including a break fee of up to 6 weeks rent. I've asked to have this term removed, since I there is a high demand where I live and I can't imagine a unit not being rented out for more than 1-2 weeks.
However, I'm also worried that this raises my liability from the aforementioned 6 weeks to much more, if I happen to need to move out in the middle of the 12-month contract.
So what is the general consensus on break fees? Are tenants advised to ask for a break fee in the lease or not?
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The high-demand for rental accommodation in your area is not really an issue as any break-fee that you agree to is fixed at a maximum 6 weeks rent if you move out during the first 6 months, and 4 weeks rent if you move during the second 6 months.
I doubt that tenants would ever ask for a break-fee to be included in their Rental Agreement, so I’m guessing that you meant to ask if tenants should ask for any such fee to be removed (?).
I’m not having a go at tenants here, but under the recently revised Residential Tenancies Act (2010) the ability of Landlords to optionally include a break-fee to apply under specific circumstances is one of the few remaining provisions that don’t overtly favour those tenants.
Even then, tenants still have several get-out situations available to them, like if someone you’re sharing the rent with moves out or if your Landlord decides to sell the place.
So, it’s really up to you; if you want the place, sign up.
(p.s. – I’m not a Landlord)