QUESTION: We have been on a series of one-year fixed-term leases with our current landlord which has been fine but now we are seriously thinking of buying our own apartment.
If we sign another lease and break it when we find somewhere suitable, will we be liable for the full amount of the lease? Or are we “sitting tenants” and come under a different set of rules? – Simon, Randwick
ANSWER: Sitting tenant rules apply when your lease has run out but you continue with the arrangement as before. Under them the landlord has to give you 60 days notice to quit and you have to give them 21 days. Your landlord has avoided this by giving you notice to quit before the end of the lease, then offering you a new one.
You could always tell your landlord you want to change to a three-month lease. But if they refuse and you sign a one-year lease, you may have to pay a hefty amount in compensation if you break it.
However, the landlord can’t ask for compensation from you for losses that could have been avoided, for instance, if they don’t even try to find a new tenant.
You could try to find an acceptable tenant for them – that shouldn’t be too hard in the current market – although you could still be liable if the new tenant decamps before the end of your original lease.