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Ending your tenancy early in Canada - all you need to know

Ending your tenancy early in Canada - all you need to know
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Ending your tenancy early in Canada – all you need to know

Ending your tenancy early in Canada can be quite complex and confusing. There could be various reasons, like acquiring a new job, family circumstances, or medical conditions that can urge you to end your tenancy early.

Breaking your lease or ending tenancy before the fixed time can take a lot of work. This is especially true if your landlord seems unwilling to approve of this. Many a time, you might be liable to give a penalty for doing so.

To understand the details of ending your tenancy early in Canada, it is first essential to know about the type of agreements that exist between the tenant and landlord. The types of agreements include Fixed-Term Tenancy Agreements and Non-Fixed Term Tenancy Agreements.

Fixed-Term Tenancy Agreement 

This tends to be the most prevalent kind of agreement in Canada. This type of agreement indicates an agreement between the tenant and the landlord. There’s a proper beginning and ending date for the tenancy or lease. Furthermore, it also indicates that both landlord and tenant will be subject to following the obligations and rights until the fixed date of tenancy. Either can choose to go legal if they feel the obligations or rights are not being met. Mostly, these agreements prolong for one year, and the tenant needs to pay the rent for the unit during that year.

Non-Fixed Term Tenancy Agreement

A Non-Fixed Term Tenancy Agreement is an agreement type with no fixed end date. This also implies that the tenancy is open and flexible to change. A tenant could pay the rent monthly, weekly, or even daily. This type of agreement is ideal for situations where the tenant seeks to end the contract early or probably after a shorter duration. The landlord or the tenant has the right to terminate the agreement whenever they want to and until the agreement will continue. Either the tenant sends a termination letter, or the landlord issues an eviction notice.

Ending your tenancy early in Canada – is it possible?

Do you want to end your tenancy or break your lease early in Canada? The lease or fixed tenancy usually exists for six months to one year. If you seek to move out of the rental apartment sooner than the formal date, your landlord might ask you to pay extra charges. These charges would relate to lost rent of the vacated apartment, advertising costs or damages, etc.

A fixed-term tenancy or lease is the same. However, according to the Residential Tenancy Act, any individual who breaks the fixed tenancy without their landlord’s approval is liable to pay the loss caused by the same. However, the landlord must also actively look for a new tenant, as he can’t keep the property empty for that duration. On the other hand, you may have to pay for the loss between your moving out and the new tenant moving in.

In certain situations, breaking the agreement won’t be a challenge if your landlord believes in you and is also aware that he may rent the property soon.

Understanding the best ways to end your tenancy early in Canada

The following ways can be best suited for ending your tenancy early in Canada:

  • Give a notice in advance – Newcomers or beginners must ensure they remain as honest as possible. You must view things from a different point of view, keeping in mind your landlord’s situation. If you explain your reasons with transparency, the landlord might understand it better.
  • Offer your landlord a new tenantYou might assist your landlord in getting a new tenant to meet the obligations. This could be done by letting your friends and family know and also advertising the property with your landlord’s consent. It will enable him to conduct proper screening to choose the right tenant.
  • Officially send a letter – There might be situations where you would find it difficult to find another tenant for your landlord and where you will need to move out immediately. In any case, you must officially write a letter explaining your situation. You could make a deal by offering them to keep a part of your security deposit or pay additional charges. Signing a Mutual Agreement to End Tenancy (under the Residential Tenancy Branch) is possible.

Legal ways

  • Choose Lease Assignments – You can choose Lease Assignments when your reason to move out of the rental place is significant. Assigning a lease indicates that the assigned person will now take over as a tenant. This further means that the assigned tenant will now be subject to rental payments and all other obligations as per the lease. However, you must take your landlord’s written permission to assign the lease to a different person. Also, the rest of the regulations associated with lease assignments will vary from each province or territory.
  • Subtenant option – A subtenant is someone who stays on rent in your leased rental residence but only under your name. Several people who need to break the lease agreement choose to sublet their homes. This option is ideal for those who seek to break the lease only temporarily and seek to come back. However, be sure to pay the damage or loss charges per your lease agreement. Take your landlord’s written approval of this sublet option to avoid legal hassles.

When should you end your tenancy or lease early?

Ending a tenancy early in Canada might lead to several consequences. We have already discussed above what could go wrong. However, there are a few instances when it will be a good decision to do so. The following reasons are vital to put an end to your tenancy early:

Victim of any sexual act of violence or domestic abuse

You are subject to end your tenancy or lease through a 28-day notice period if you have been a victim of domestic or sexual abuse. This will also apply to the child living with you (if applicable). This is the case in Ontario. However, different rules apply to different provinces or territories. The tenant will need to prove that if they reside in the landlord’s living space, they might face unsafe conditions of violence, etc. Also, written statements and signing legal forms will be a part of this process.

Landlord not meeting certain obligations

If your landlord fails to meet certain obligations, such as failing to make timely repairs to the unit or providing safer conditions through maintenance of the rental unit, you could choose to end the agreement. However, you must be able to provide written statements and officially present your genuine concerns. It could include purposely depriving you of essential services, water damage, irrelevant wiring, safety risk, violation, etc. Providing proof in the form of photos or videos will be even better, along with your documents.

Conclusion

No matter what situation you might be in that compels you to decide to break free from the tenancy, always opt for legal solutions. Never make any deal with your landlord on verbal term take written consent, and always present proper documents for such matters.