So many renters breaking their rental agreement and leaving early.

[Bayer]

I am a tenant now but used to be an owner, so I can understand both sides. I would not condone anyone breaking their lease, unless they can come to an agreement with the owner. I once rented a newly-renovated building on Charles St. where the soundproofing was non-existent, and I would hear the next-door neighbour crying, having sex and even knocking her toothbrush against the edge of her bathroom sink. It was very disappointing as I loved the place, but I waited until the end of my lease to leave.

I don't agree that tenants have much power, especially in newer buildings. Nothing prevents an owner from demanding a large increase in rent from a tenant if he wishes them to leave.

 

[interested]

I am a tenant now but used to be an owner, so I can understand both sides. I would not condone anyone breaking their lease, unless they can come to an agreement with the owner. I once rented a newly-renovated building on Charles St. where the soundproofing was non-existent, and I would hear the next-door neighbour crying, having sex and even knocking her toothbrush against the edge of her bathroom sink. It was very disappointing as I loved the place, but I waited until the end of my lease to leave.

I don't agree that tenants have much power, especially in newer buildings. Nothing prevents an owner from demanding a large increase in rent from a tenant if he wishes them to leave.

The rent increase will be dictated by the market. Personally, I can only say that if I have a good tenant, I will abate the rent increase, even forgo it to keep them. I do expect market or close to market rent...but a good tenant is worth more than a few extra bucks.

 

[TheKingEast]

Why not just rent it out to somebody that actually wants to be there? Nothing good comes of getting into a dispute with a renter who is still living in your property, especially when you could easily rent it to somebody else.

You must be one of those people who think landlords are made of money. Breaking a lease early is a cost to the landlord.

 

[TheKingEast]

I am a tenant now but used to be an owner, so I can understand both sides. I would not condone anyone breaking their lease, unless they can come to an agreement with the owner. I once rented a newly-renovated building on Charles St. where the soundproofing was non-existent, and I would hear the next-door neighbour crying, having sex and even knocking her toothbrush against the edge of her bathroom sink. It was very disappointing as I loved the place, but I waited until the end of my lease to leave.

I don't agree that tenants have much power, especially in newer buildings. Nothing prevents an owner from demanding a large increase in rent from a tenant if he wishes them to leave.

I know what building you're talking about. That's terrible.

 

[cdr108]

I am a tenant now but used to be an owner, so I can understand both sides. I would not condone anyone breaking their lease, unless they can come to an agreement with the owner. I once rented a newly-renovated building on Charles St. where the soundproofing was non-existent, and I would hear the next-door neighbour crying, having sex and even knocking her toothbrush against the edge of her bathroom sink. It was very disappointing as I loved the place, but I waited until the end of my lease to leave.

I don't agree that tenants have much power, especially in newer buildings. Nothing prevents an owner from demanding a large increase in rent from a tenant if he wishes them to leave.

I know what building you're talking about. That's terrible.

newly renovated or newly built?
I can only think of older stock buildings (mostly Victorian rentals and few 1970s rentals) on Charles and the few newly built glass towers like X, X2, casa and BNS(which isn't a glass tower), so what building are you referring to?

 

[NorthYorkEd]

What happens if an agreement to lease has been signed, the deposit has been made, but due to a unforeseen change in circumstances one party wants to terminate the contract before occupancy?

 

[interested]

What happens if an agreement to lease has been signed, the deposit has been made, but due to a unforeseen change in circumstances one party wants to terminate the contract before occupancy?

I am not a lawyer so this may not be correct but I believe the law is one has a duty to mitigate the loss.
So if one leaves early or never starts the lease and has signed a contract, a reasonable landlord must allow a sublet or mitigate his loss. That said, the sublet tenant must be reasonable to the landlord, not to be unreasonably withheld. Also, the renter would have to make the landlord whole meaning that the landlord should not end up out of pocket.
The reality is it is best just to approach and agree to some reasonable arrangement. For e.g. agree to pay the first month and maybe the landlord would agree to that and try and rerent.
I would believe however legally the landlord acting reasonably trying to mitigate his/her loss if unable to rent or renting at a lower amount to mitigate the loss could come after the party who wants to terminate.

the reality is the courts are too expensive and it is usually easier unless there is no chance of renting it or subletting it for the landlord to swallow the loss. Unfortunately even if one wins, then one still has to collect.

 

[harry_fine]

It is more complicated than that. But yes, mitigation is essential. Even if the tenant doesn't move in, the tenancy commences on the day that the tenant is entitled to occupy the rental unit. So the tenancy starts, like it or not. Rent continues to be owed until the date that rent would have been owed to had the tenant given proper notice of termination. If there is no term (month to month), that would be 60 days minimum effective the last day of the lease term. So if today you said "I'm leaving on April 30th", you would have an obligation to pay rent to May 31st, subject to mitigation efforts by the landlord. Notice must be given on a proper LTB approved N9 notices. No proper signed notice...no obligation to mitigate.

Now what if there was a one year term. Tenant moved in December 1st on a one year term. Tenant then says (or says today, March 5) I'm not moving in (or I'm moving out April 30th). Same rule. Rent would continue to be owing until the earliest date that it would have been permissible to end the tenancy by notice, that is, December 31st. However, a court is required to consider whether the landlord made efforts to re-rent when determining what rent is owing. So no mitigation, the Court will likely say "no rent owed". And again, in lease term, must use a propr N9 notice.

If a landlord and tenant AGREE to end the tenancy (tenant gave 47 days notice, landlord knows he can re-rent quickly, it's a hot building), then they can sign an LTB N11 form. If they sign an N11 form, the date they agree to (even if it's next Tuesday) will be the last date to which rent is owed, assuming the tenant moves out.

If the tenant signs an N9, or if the landlord and tenant jointly sign an N11, and the tenant doesn't move out, or the landlord wants to make sure he/she will move out, the landlord can file an ex parte application, an application without notice to the tenant and without a hearing. The landlord has to include a copy of the N9 and N11, has to provide an affidavit swearing to the circumstances around the notice or agreement, and must file the application (called an L3, with a $170 application filing fee) within 30 days of the termination date in the notice or agreement. The LTB will order Sheriff eviction based on the L3 application.

Hope that helps. See s.37, 43 and 88 of the Residential Tenancies Act for specifics, or call the LTB hotline at 416-645-8080.

 

[interested]

^^^^
Thank you for clarifying this. Great and clear post.
Personally when tenants have left early, we have always worked out something together.
The reality is even if one gets judgement, collecting it can be a whole other issue.
Best to approach and try and Agree to something in my view.

 

[harry_fine]

Not only for that reason, collecting the judgement, but often the tenant says "OK, you want to play it that way, you entered my unit 3 times illegally, my heat wasn't working for 4 days" etc. So the tenant sues you to offset the rent judgment. You are right. Make a deal.

 

[interested]

^^^^
ahhh, the joys of being a landlord and of being a tenant.
If people would just treat each other with a bit of respect and try and put themselves in the opposing persons shoes, it would be clear what is reasonable.
However, some landlords are really nasty.
Some tenants just feel they should be able to cancel deals at will.
Fortunately, the majority of people are pretty good and reasonable.

 

[TORealtyBlog]

That sounds awful, but you're completely right. Tenants don't have much power when it comes to rent increase. I used to have fantastic tenants, and I ended up not increasing their rent because I didn't want to lose them. So it all really depends on the kind of landlord you have.

 

[TheKingEast]

^^^^
Thank you for clarifying this. Great and clear post.
Personally when tenants have left early, we have always worked out something together.
The reality is even if one gets judgement, collecting it can be a whole other issue.
Best to approach and try and Agree to something in my view.

Pretty much this. As a landlord you have to be prepared to cover the costs of lost rent. Going to court is just way too much of a drain on your head and your wallet.

Tenants are just so wishy washy, though. Getting into contracts when they're not truly sure. I've had countless people hunt me down to rent property, hand over signed lease and everything....all to have a "change of heart" right before they have to hand over the cheques. These are the times

I guess it goes both ways.

 

[TrickyRicky]

If at all possible do not let your tenant mitigate your loss by picking someone to take over their lease or rent the apartment for you. I know the temptation is there because you are busy and don't want to bother re-renting your unit. Probably 4 out of every 5 bad tenants you would deal with arrive in your property through tenant sublets and lease takeovers. This is not because your tenant wants to screw you over. It is because they have no incentive to chose a good tenant and do not have awareness of what their friends and acquaintances are really like. You don't even want your own friends to rent from you let alone the friends of others.

 

[tdb1]

I haven't heard of such - where did you get the info ?