What happens when you have a fixed term lease and your tenant chooses to end the tenancy before the lease expires.

All rental agreements are required to have specific terms included. One of those terms is not the compensation required if a tenant vacates before the end of a fixed term. 

A lease should have a term describing the compensation a tenant is required to pay when they end the tenancy early. If the tenancy agreement has no specific term, a tenant may still be held responsible for reasonable costs lost from the tenants terminating early.   

When a tenant vacates early, a Landlord has the responsibility to mitigate their loss. What does that mean?. If your tenant leaves at the six month point of a one year lease, a tenant could be responsible for the remaining six months of rent, if the Landlord attempts to mitigate their loss. The landlord has the responsibility to advertise the property for rent, as soon as  the current tenant provides notice. If the landlord waits until a month after the tenant vacates, then begins looking for a tenant it may be perceived as not trying to mitigate your loss. 

When your tenant vacates and you spend time looking for a new tenant and are able to find one, the current tenant’s responsibility for the remaining months of the lease ceases. Landlords are not allowed to collect rent from a new tenant and charge a previous tenant for unpaid rent for the same calendar month. 

When your tenant provides notice, make the effort to find a new tenant immediately, show your efforts of advertising and the applicants and or lack of applicants for the vacant property. These tasks will assist in mitigating your loss and provide information for a case of having the tenant pay for the remaining term of the lease. 

How does Cartref Properties help mitigate these issues?. Our lease agreements have a clear explanation of when a tenant vacates the term early the cost to the landlord for ending the lease. We also clearly explain the required notice period a tenant must provide to the landlord when vacating a property. 

Need assistance with your rental property contact us for an evaluation of your needs.

Cartref Properties specializes in managing rental units located within Strata Corporations. 

www.cartrefproperties.com 

“Helping landlords find tenants a place they call home”