Understanding Tenancy Agreements

Understanding Tenancy Agreements

When you rent a place to live, you and the landlord enter into a tenancy agreement, which is a contract where you agree to pay rent for the right to live in a rental unit. For most agreements entered into on or after April 30, 2018, the contract must be in writing, signed by both parties, and use the standard lease form.

Types of Tenancies

There are two main types of tenancies:

1. Non-Fixed-Term Tenancy
This type of agreement has no set end date. Depending on how rent is paid, it may be referred to as:

• Monthly tenancy (if rent is paid monthly)
• Weekly tenancy (if rent is paid weekly)
• Daily tenancy (if rent is paid daily)

The agreement continues until:

• Both parties agree to end it
• The tenant provides notice to end it
• The Landlord and Tenant Board (LTB) issues an eviction order

2. Fixed-Term Tenancy
In this agreement, the landlord and tenant set specific start and end dates. For instance, in a one-year lease, the landlord must provide the unit for the entire year, and the tenant must pay rent for the full term.

What Happens When a Fixed-Term Tenancy Ends

When your fixed-term tenancy ends, three things can happen:

1. Automatic Conversion to a Non-Fixed-Term Tenancy
   If no new agreement is made, your lease automatically converts to a monthly, weekly, or daily tenancy, depending on your original payment schedule. All terms of the former lease still apply. The landlord can increase rent annually, following the rent increase guideline with proper notice.

2. You Move Out
   You must provide proper notice to end the tenancy (see below).

3. You Agree to a New Fixed-Term Lease
   You and the landlord can negotiate and sign a new agreement.

When a Tenant Wants to Move Out

Giving Notice

To end your tenancy, you must:

• Provide written notice using Form N9 (Tenant's Notice to Terminate the Tenancy), or
• Make an agreement with your landlord to terminate the lease.

Termination Dates

The notice must specify the last day you plan to live in the unit (the "termination date"). Even if your lease ends, you must provide notice to move out; otherwise, the tenancy continues.

Fixed-Term Tenancy:
You must give at least 60 days’ notice before the lease ends. The termination date must be the last day of the fixed term.

Monthly Tenancy:
You must provide 60 days’ notice, with the termination date being the last day of a rental month.

Weekly Tenancy:
You need to give at least 28 days’ notice, with the termination date being the last day of a rental week.

Special Cases

Moving in February or March:
Because February has 28 days, you can give less than 60 days’ notice if:

• Moving at the end of February (notice by January 1)
• Moving at the end of March (notice by February 1)

Improper Notice

If you move out without proper notice, you may still be responsible for paying rent until:

• The unit is rented to someone else, or
• The earliest possible termination date under proper notice terms.

Ending a Tenancy Early

Under specific conditions, you may end a fixed-term tenancy early:

1. Mutual Agreement
   You and your landlord can agree to end the tenancy at any time. It's best to have this agreement in writing.

2. Assignment or Subletting
   You can assign your lease to another person, transferring all rights and responsibilities. Approval from the landlord is required. If denied, you can give notice to end the tenancy early.

3. Landlord's Non-Compliance
   You can apply to the LTB to end your lease if the landlord violates their obligations, such as failing to maintain the property or interfering with your enjoyment of the rental unit.

4. Sexual or Domestic Violence
   If you or a child living with you are victims of violence, you can give 28 days' notice at any time during your tenancy. Special forms and confidentiality protections apply.

5. Non-Standard Lease Form
   If the landlord did not use the required standard lease form, you can demand it in writing. If they fail to provide it within 21 days, you may give 60 days' notice to terminate the lease.

Assigning a Tenancy

Assigning your tenancy means transferring your lease to another person (assignee). You leave the unit permanently, and the assignee assumes all responsibilities and benefits of the lease.

Assignment vs. Subletting:

• Assignment: The new tenant takes over your lease entirely.
• Subletting: You temporarily leave the unit and plan to return. You remain responsible for the lease during this period.

Steps for Assignment:

1. Request approval from your landlord.
2. If denied, you can end your tenancy early with proper notice.
3. If approved, find a suitable tenant (the landlord must approve but cannot unreasonably refuse).

Landlords may charge reasonable costs for approving the assignment, such as credit check fees.

Disputes and the Landlord and Tenant Board

If disputes arise, such as improper eviction or unreasonable refusal of an assignment, you can file an application with the LTB. Hearings allow both parties to present evidence and arguments.

Final Tips for Tenants

• Always communicate in writing to have a record of agreements or notices.
• Use the standard forms provided by the LTB to avoid issues.
• Seek advice if you’re unsure of your rights or obligations.

Understanding and following these guidelines can help ensure a smooth and fair rental experience for both tenants and landlords.