Terminating your Purpose-Built Student Accommodation contract early

You may need to end your Purpose-Built Student Accommodation (PBSA) contract before the end date set out in the agreement. Before you terminate your contract, it’s important to review the terms and conditions and understand all the relevant clauses.

Understanding your contract

Are you a tenant, a lodger or exempt from both acts because you live in university-owned accommodation? Find out what kind of renter you are. Once you understand your legal classification, you need to review your contract and understand the termination clauses which apply to an early exit.

If you’re a tenant

Please note: most PBSAs don’t enter into tenancy agreements with the students who live there.

If your contract states that you’re a tenant, you will have paid 4 weeks’ bond and your contract will have a clause which sets out the regulated break fee. The cost of the break fee depends on which part of your fixed term agreement you are in. You can end your contract without any legal reason by giving written notice and paying the break fee. Find out your break fee amount.

If you’re a lodger

If your contract specifies that you’re an occupant or resident, you are legally considered to be a lodger and are covered by the Boarding Houses Act 2012.

Most PBSAs have additional fees and clauses for terminating your contract early. Check your contract for:

• early termination fee clause
• amount of notice required, typically 2–4 weeks
• a clause stating you are required to continue to pay for the occupancy fees and charges until a new lodger has been approved by the PBSA.

Be aware that you are not permitted to sublet your room.

Clauses for terminating your PBSA contract are usually extremely costly, and it’s important to understand your contract and the law which applies before attempting to exit early.

You should get advice from a SUPRA caseworker before terminating your contract. Contact us for help.

If you proceed without getting advice from SUPRA, you should:

• give your PBSA the required notice set out in the contract
• pay the break fee that would apply if you were a tenant
• apply to NCAT for an order to terminate your contract without further liability to pay occupancy fee and other costs.

Other charges

The Boarding Houses Act 2012 states that:

• you should not be charged a penalty for breaking either the rules of the boarding house or the rules of your agreement
• you should not be charged more than 2 weeks’ security deposit
• your security deposit should be refunded within 14 days of vacating the property (unless you have caused damages, or still owe rent).

Disclaimer

This information is current as of November 2024 and is intended as a guide to the law as it applies to people who live in or are affected by the law as it applies in NSW. It does not constitute legal advice.

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Written by SUPRA Postgraduate Advocacy Service and Legal Service November 2024.