Breaking a Lease vs Transferring a Lease in Queensland: Which Costs Less?

A lease transfer can be cheaper than ending a fixed-term tenancy early, but it is not automatically the lower-cost path. The answer depends on written approval, the transfer's reasonable expenses, the date your responsibility ends and how the break-lease formula applies to your agreement.

First, identify which arrangement is actually proposed

The everyday phrase “find a replacement tenant” can describe several legally different outcomes. Ask the property manager to name the arrangement before comparing costs.

Simply introducing a candidate does not prove which of these occurred. A new person moving in as an approved occupant is also not necessarily a transfer of your interest. The written documents and their effective dates matter.

What Queensland law says about transferring a tenancy

For most private residential tenancies, section 238 of the Residential Tenancies and Rooming Accommodation Act 2008 says a tenant may transfer all or part of their interest only with the lessor's written agreement or under a tribunal order. The lessor must act reasonably when deciding whether to agree. Acting capriciously or in retaliation is treated as unreasonable.

Section 239 allows a tenant to apply to QCAT if they believe a refusal was unreasonable. The tribunal may consider whether the proposed transferee is likely to meet the tenancy obligations and any risk of damage, among other relevant issues.

Different rules apply where the lessor is the State, receives State assistance to provide rental accommodation, where occupancy arises through employment, or for a short moveable-dwelling tenancy. In those section 237 categories, transfer or subletting requires the lessor's written consent and the qualified-discretion rules above do not apply in the same way.

How break-lease reletting costs work

For a fixed-term agreement entered into on or after 30 September 2024, section 357A limits any compliant reletting-cost term. For a fixed term of not more than three years, the amount is the lesser of:

• the tier based on how much of the term had expired when vacant possession was handed over; or
• the rent payable from vacant possession until a new agreement begins after the premises are relet.

The RTA states that no additional reletting costs can be requested for these newer agreements. Unpaid rent, service charges and tenant-caused damage are separate matters, so a low reletting cost does not necessarily equal the final account. Agreements entered into before 30 September 2024 may still rely on a compliant older term requiring reasonable reletting costs. Longer fixed terms use a different calculation.

The owner or agent must take reasonable steps to reduce loss. Use the TenantTools Queensland break-lease calculator for a first estimate, then compare that estimate with the written proposal and actual reletting dates.

Worked examples: when each option can cost less

These examples use hypothetical transfer expenses, not a recommended or standard agent fee. They exclude ordinary rent up to the effective end or transfer date, rent arrears, utilities, damage and bond claims.

Example 1: transfer costs less

Assume weekly rent is $650, 60% of a 12-month fixed term has expired and the agreement began after 30 September 2024. The percentage tier is two weeks' rent, or $1,300. If a break lease produces a seven-day vacancy, the reletting-cost calculation would use the lower amount of $650.

If an approved transfer takes effect on the planned moving date and the documented reasonable transfer expense is $180, the transfer is $470 lower than the $650 break-lease reletting cost in this example.

Example 2: a fast relet costs less

Use the same $650 weekly rent and $180 hypothetical transfer expense. If a new agreement begins one day after vacant possession, the break-lease reletting amount is about $92.86, which is lower than $180.

Example 3: delay changes the answer

If the transfer takes effect one week later than you expected, you may still owe the ordinary $650 weekly rent until the effective transfer date, plus the agreed transfer expense. A transfer that looked cheaper can become more expensive if approval, screening or paperwork delays the release date.

How to request a transfer without creating new risk

1. Read the agreement. Check every named tenant, the fixed-term end date, rent, bond contributors and any transfer or subletting terms.
2. Get agreement from co-tenants. The RTA says existing tenants should agree to a change in the people listed on the tenancy.
3. Make a clear written request. State that you are seeking approval to transfer your interest, not merely nominating an occupant. Give the proposed effective date and ask what information the candidate must provide.
4. Let the candidate complete the requested checks. Do not promise approval or a move-in date on the owner's behalf.
5. Request the cost basis. Ask for the proposed transfer expense, the work it covers and when it becomes payable.
6. Confirm the legal outcome. Ask whether the existing agreement will be amended, whether your whole interest is transferred, the effective date and whether you are released from obligations arising after that date.
7. Deal with the bond separately. Update the bond contributors only after the tenancy change is approved and the money exchange between tenants is agreed.
8. Keep the complete record. Save the request, approval, amended agreement, cost breakdown, condition evidence, bond change and payment receipts.

Form 6 changes the bond record, not the lease

The Change of bond contributors process is for an ongoing tenancy. The RTA states that Form 6 changes bond ownership or allocation, but successfully submitting it does not change the tenants listed on the tenancy agreement.

An outgoing contributor or someone reducing their contribution must agree to the change. The outgoing tenant normally receives their share from the incoming or remaining tenants, not from the RTA. If the bond has an outstanding government bond loan, contact the relevant housing department before changing contributors because additional approval rules apply.

Record both parts separately: the approved change to the tenancy agreement and the change to bond contributors. One does not substitute for the other.

If approval, timing or costs are disputed

Ask for the decision and reasons in writing. Keep the proposed transferee's application, the transfer request, the refusal, the cost breakdown, the agreement and any evidence showing the proposed effective date.

For a non-urgent tenancy dispute, QCAT says RTA conciliation is mandatory first. If the matter is not resolved or is unsuitable for conciliation, the RTA issues a Notice of Unresolved Dispute. A QCAT application should identify the relevant section and include the notice, tenancy agreement and supporting documents.

Do not move another person in, accept money as a head-tenant or hand over keys while the legal arrangement is unclear. Subletting carries its own obligations, including a written agreement and other lessor-like responsibilities to the subtenant.

A practical decision rule

Choose the option that produces the lowest realistic total cost and a clear release date, not simply the lowest quoted fee. A transfer is strongest when a suitable candidate is ready, every tenant agrees, approval can be completed promptly and the reasonable expense is lower than the expected break-lease amount. Breaking the lease may be simpler or cheaper when the property can be relet quickly, the transfer would be delayed or the proposed arrangement does not fully release you.

If hardship, domestic and family violence or another statutory pathway may apply, do not assume a standard transfer-versus-break-lease comparison captures your rights. Read our Queensland hardship guide and seek tailored tenancy advice.

The bottom line

An approved transfer can reduce the cost of leaving, but the approval, expense and release date must be real and documented. Compare it with the applicable reletting-cost cap and the likely vacancy period, then keep the tenancy amendment and bond update as separate pieces of evidence.