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So You Want Your Tenants to Sign a Long Term Lease?

January 18th, 2012 · 5,583 Comments · Bad tenants, lease

What can go wrong if a tenant wants a long term lease from you?

It makes sense doesn’t it.  You have a couple who want to rent your place.  They say they want “stability” and would like to sign a three year lease with you.

A three year lease?  That’s guaranteed rent for me for three years!

Again, it makes sense.  It sounds good.  Hell, it sounds great!  You have three years of not worrying about finding tenants.

Except this is Ontario.  Landlord of protection for bad tenants and leaving landlords with nothing

Let’s take a look at an LTB decision. Remember Tenants can break leases, usually with little pain. As for the landlord if you want to break a long term lease?

What happens?

TEL-06568-10 16/09/2010

– s. 48(2), N12 date for termination at end of term

The Landlord applied to evict the Tenant because the Landlord requires the rental unit for the purpose of residential occupation.

The Member found that the Agreement to Lease executed by the Tenant and the former Landlords was a valid written tenancy agreement which was binding on the current landlord.

The Landlord’s notice of termination gave a date in 2010 as the effective date. The previous landlords had entered into a five-year lease with the Tenant that expires in 2013. Therefore the termination date specified in the notice was not the day on which the term of the tenancy ends as required by s. 48(2) of the RTA, and the Landlord’s application was dismissed.

http://www.ltb.gov.on.ca/stdprodconsume … 085043.pdf

Order under Section 69
Residential Tenancies Act, 2006
File Number: TEL-06568-10
In the matter of: [Address removed]

Between: [Landlord’s name removed] Landlord

And

[Tenant’s name removed] Tenant

[Landlord’s name removed] (the ‘Landlord’) applied for an order to terminate the tenancy and
evict [Tenant’s name removed] (the ‘Tenant’) because the Landlord requires possession of the
rental unit for the purpose of residential occupation.
 The Landlord also claimed compensation for

each day the Tenant remained in the unit after the termination date.

This application was heard in Whitby on August 30, 2010.

Appearances:

[Landlord’s name removed], in person
[Tenant’s name removed], in person
[Landlord Legal Representative’s name removed], the Landlord’s legal representative

Determinations:

1. The Landlord served the Tenant with a notice of termination effective July 31, 2010
because the Landlord requires possession of the rental unit for the purpose of residential
occupation.

2. The notice of termination does not comply with the requiremments set out in section 48 of
the Residential Tenancies Act, 2006, S.O. 2006 c. 17 (the ‘Act’). Specifically, the
termination date specified in the notice is not the day on which the tenancy ends. The
tenant and the former landlords entered into a written tenancy agreement for a fixed five
(5) year term commencing August 1, 2008 and ending July 31, 2013.

3. As the Landlord has selected an invalid termination date, the application for termination of
the tenancy and eviction of the Tenant must be dismissed.

It is ordered that:File Number: TEL-06568-10

Order Page 2 of 2

1. The Landlord’s application is dismissed. 

September 16, 2010 _______________________
Date Issued Louis Bourgon
Member, Landlord and Tenant Board
Toronto East-RO
2275 Midland Avenue, Unit 2
Toronto ON M1P3E7

So a long-term lease is like a straight jacket for landlords 

In Ontario what seems like common-sense for landlords can become your own personal nightmare.

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