Real Estate

Rental Lease Question

  • Last Updated:
  • Aug 6th, 2018 10:36 pm
[OP]
Sr. Member
May 12, 2003
801 posts
236 upvotes

Rental Lease Question

Question: can you include a clause in the lease the renter has to empty the premises after 1 year, meaning cannot go month to month after one year lease?

location: Ontario.
18 replies
Deal Guru
User avatar
Mar 23, 2008
10346 posts
6612 upvotes
Edmonton
You can include whatever you like. The bigger question is "Is it enforceable?"... And I suspect that's a no, as it's a contradiction to the N9 form, which states:
A landlord cannot require the tenant to sign an N9 Tenant's Notice to End the Tenancy as
a condition of agreeing to rent a unit. A tenant does not have to move out based on this
notice if the landlord required the tenant to sign it when the tenant agreed to rent the
unit.
C
Deal Addict
Mar 20, 2017
1210 posts
958 upvotes
It is only possible in cases, when RTA is not applicable or for sublets.
The most common case is when you share kitchen or bathroom with tenant.
Deal Addict
Feb 9, 2013
1784 posts
612 upvotes
Mississauga
What if a landlord just wants to rent a property for 2 years, and move in or sell in 2020 of August? Can the lease enforce end of tenancy then?
Deal Addict
Mar 20, 2017
1210 posts
958 upvotes
Selling is not a reason to force tenants to leave. The buyer just inherits all liabilities that landlord had.
Moving in is OK reason, as long as landlord will live there for the following year and provide one-month rent compensation.
Sr. Member
Dec 19, 2010
745 posts
221 upvotes
Toronto, Ontario
Just thinking out loud here but if when the tenant signs the lease and you make them aware that this is a one year lease only and you want them out after that, could the landlord ask them to sign the N9 form in advance (same time as lease) that way everyone is in agreeance from the start?

EDIT: nevermind just seen CNeufeld's post.
Deal Addict
Jan 17, 2006
1809 posts
1823 upvotes
Toronto
GalvToronto wrote: Selling is not a reason to force tenants to leave. The buyer just inherits all liabilities that landlord had.
Moving in is OK reason, as long as landlord will live there for the following year and provide one-month rent compensation.
If buyer buys it to live there and not to rent, it will effectively force tenant out.
Deal Addict
Mar 20, 2017
1210 posts
958 upvotes
ilim wrote: If buyer buys it to live there and not to rent, it will effectively force tenant out.
The notice of termination for personal use is behind that. Does not matter if buyer or existing landlords decides that.
Therefore, selling does not matter. Intentions of owner to live there matter.
Deal Addict
Jan 17, 2006
1809 posts
1823 upvotes
Toronto
GalvToronto wrote: The notice of termination for personal use is behind that. Does not matter if buyer or existing landlords decides that.
Therefore, selling does not matter. Intentions of owner to live there matter.
Still there is significant difference. When you sell it to someone with intention to live there no one month compensation is need to force tenant out in 60 days.
Deal Addict
Aug 12, 2004
4304 posts
1874 upvotes
Calgary
ssj4_ootaku wrote: Question: can you include a clause in the lease the renter has to empty the premises after 1 year, meaning cannot go month to month after one year lease?

location: Ontario.
Not enforceable. Tenant can just say I changed my mind, goes month to month. You also better charge your tenant sky high rent now because you will be locked in % wise if not, thanks to your friendly socialist Liberal government. Only way they can be evicted is if you move in yourself and pay them 1 month rent compensation (and only if they accept, it can get dragged out pretty long through the LTB process).
[OP]
Sr. Member
May 12, 2003
801 posts
236 upvotes
Do you think its possible for me to charge "sky high rent"

As in $2,000 for something worth $1,500, and give then a rebate each year....and rebate each year will be negotiated.

Thoughts?
Sr. Member
Jun 7, 2017
814 posts
566 upvotes
BC
This is an excellent q. Call LTB and ask what is the proper way to set this up. Maybe a 1-year lease rather than rent, sufficiently backed up by a lawyers legal form.
Deal Fanatic
User avatar
Jul 14, 2008
8237 posts
1838 upvotes
Ontario
ssj4_ootaku wrote: Do you think its possible for me to charge "sky high rent"

As in $2,000 for something worth $1,500, and give then a rebate each year....and rebate each year will be negotiated.

Thoughts?
Why? Just charge market rate.

Market rate has actually surged in the last year so with a new tenant you're in the best position. Low vacancy and landlords having to price in future uncertainty, new and clock-reset rental rates have never been higher. Also make sure to send a rent increase notice 90 days from the end of the lease. Because landlords are hamstrung, you're going to have to raise the rental rate every year regardless of need - in order to protect you from future carrying cost increases that are well above guideline maximums.
Deal Addict
Mar 20, 2017
1210 posts
958 upvotes
ssj4_ootaku wrote: Do you think its possible for me to charge "sky high rent"

As in $2,000 for something worth $1,500, and give then a rebate each year....and rebate each year will be negotiated.

Thoughts?
RTA provides some abilities to actually put a higher rate into agreement and apply discount. But there are too many limitations on possible discount, read about it.
But in fact, many landlords underestimate the market rent today. Whatever looks like sky high rent may be already a reasonable price, thanks to rent control.
I see many room listings on kijiji for $600-700/month and it looks ridiculous. Sometimes I want just to call them and teach them how to get tenant for 1000+/month
Last edited by GalvToronto on Aug 1st, 2018 4:15 pm, edited 1 time in total.
[OP]
Sr. Member
May 12, 2003
801 posts
236 upvotes
Yes, but this way, I can future proof any significant increase. As in increase 10% if I want by reducing the rebate.

For example $2000 rental with $500 rebate = $1,500 first year
2nd year, I can do $2000 x 2% increase = $2,040 with only $400 rebate = $$1,640.

This is just an example. But do you think that would pass. Its not really raising the rent, its more reducing the rebates. And you can structure it so that the tenant has to pay you the $2,000 upfront and then you rebate them $500.
onlineharvest wrote: Why? Just charge market rate.

Market rate has actually surged in the last year so with a new tenant you're in the best position. Low vacancy and landlords having to price in future uncertainty, new and clock-reset rental rates have never been higher. Also make sure to send a rent increase notice 90 days from the end of the lease. Because landlords are hamstrung, you're going to have to raise the rental rate every year regardless of need - in order to protect you from future carrying cost increases that are well above guideline maximums.

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