LEASE & RENTAL AGREEMENTS

On Real Estate Law for residents in Canada  

There are two common tenancy agreements found in Canada: month-to-month or fixed term (lease). In month-to-month tenancies, the tenant can end the tenancy with one full calendar month's notice whereas a lease locks them in for the full period set out in the paperwork.  Many tenants like month-to-month agreements because of the rent increase protection, and because it is tough for a landlord to move out a tenant who doesn't want to go.  Many landlords like a lease because it gives them the security of steady income for a specified period of time, which can assist in obtaining a mortgage. Some landlords also like a fixed term agreement because they can get rid of an unwanted or troublesome tenant when the period ends, as against having to fight in arbitration and even pay the tenant compensation in some circumstances.

The tenant and the landlord both have legal rights. There are laws that protect a tenant from sudden rent increases or being forced to leave the rented accommodation.  Discrimination on the basis of color, creed, sex, age or disability is not allowed by the Canadian Charter of Rights and Freedoms. Provincial landlord and tenant laws also protect against such discrimination. However, the tenant also has responsibilities. It is important to keep the house or apartment one is renting in the same condition as the tenant found it. The provincial Landlord and Tenant Regulations govern the relationship between landlord and tenant.

A rental agreement can be written, verbal or implied. Since the rental agreement is the most important part of a landlord and tenant relationship, it should be in writing. The advantage of a written agreement is that it outlines the terms and conditions agreed to by both parties. Once the landlord and tenant agree to the terms and conditions of their contract, it cannot be changed unless both parties agree.  

Areas to look out for include:

1. Duration of agreement: Most rental periods or leases last for

   12 months, during which time the landlord cannot increase the

    rent. It is also important to note the notice periods that

    either tenant or the landlord has to give in order to terminate

    the agreement.

2. Responsibility for household bills: Some utility services will be

    included in the rent (e.g. water), while in other cases the

    tenant might be responsible for paying (e.g. gas, electricity).

3. Forfeiture: If the tenant is deemed to be in breach of the

    agreement, he can be evicted from the rented

    accommodation.

4. Deposit: In most rental agreements in Canada, the landlord

    will ask for the first and last month’s rent to be paid in

    advance. This is actually done to collect the deposit that is

    used to cover any damages which may be caused, along with

    any outstanding debts that the tenant may owe at the end of

    tenancy.  In some provinces, it is illegal for a landlord to ask

    for a security deposit or a damage deposit, and that the laws

    concerning the rental of an apartment can be different from

    province to province.

5. Pets: There is nothing in the Rental of Residential Property

    Act that prevents a landlord from refusing to rent to someone

    who has a pet. If the agreement has an additional term

    stating that the tenant cannot have a pet, the landlord may

    serve the tenant with a Notice of Termination for that reason.

6. Increase of rent if a new tenant moves in:  A landlord cannot

    increase the rent just because a new tenant moves in. The

    Rental of Residential Property Act outlines the procedures a

    landlord must follow to increase the rent.