Residential Leases and Real Estate Investors- Tenancies Act

Misconceptions of Landlord and Tenant Rights for Ontario Real Estate Investments

I recently had a discussion with a client about residential leases and landlord rights. It seems there is some misinformation regarding the rights of the tenants, and the rights of the landlord while drawing up a lease for tenants for an investment property.

This can be resolved in one fell swoop, The Residential Tenancies Act 2006. In a nutshell the Act  supersedes all written leases that we as landlords draw up and have our tenants sign.

The ACT IS YOUR LEASE.

What I mean is that although you can stipulate post-dated cheques ( for example) as a requirement before a new tenant moves in, it is not in the act and therefore can not be forced. If you were to end up before a tribunal, the judge would refer to the act, NOT YOUR LEASE to determine guiding arbitration.

And in some cases having a lease inhibits the landlord. The lease is actually there to protect the tenant, not the landlord. Having no lease actually means that your tenant is on a month to month lease. The tenant’s term is “one month”. Most leases are for a year or more, which means the term of the contract is for one year. You, as the landlord must honour that agreement and keep the tenant there for the full term, even if they do not pay the full amount. As well if you were required to move into your rental property and you had a long term lease in place, then by law( the Act)  you have a contract with your tenant for that full term. If you have no lease in place, then the Act is your lease and the tenant is automatic ally on a month to month term. Which means that if they pay rent every month then you are obliged to fulfill that one month term.

Simply put, the Tenant Act of Ontario over rides all written leases when arbitration is required. A month to month lease ( where there is no signed lease in place at all) is more flexible and therefore more beneficial to the landlord should a problem arise.

Something to keep in mind when renting your investment properties.

 If you have any questions about tenant management and renting real estate investment property in Barrie, Orillia and Innisfil contact Mana Investments and Mark Vosylius- 705-812-1033