Real Estate

Ontario co-tenant wants to move out?

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  • Dec 31st, 2019 10:03 am
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[OP]
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Jan 23, 2006
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Ontario co-tenant wants to move out?

So 2 folks are renting a condo - it’s been more than a year, one found a job elsewhere and wants to move out.

The second one has found a new roommate - what is the proper way of proceeding? Is there such a thing as amending original lease - and what if the new tenant fails screening? Or a new lease must be signed?
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djredhat wrote: So 2 folks are renting a condo - it’s been more than a year, one found a job elsewhere and wants to move out.

The second one has found a new roommate - what is the proper way of proceeding? Is there such a thing as amending original lease - and what if the new tenant fails screening? Or a new lease must be signed?
The answer is somewhere between "it depends" and "its complicated". It depends on the lease with the landlord and the desire of everyone involved.

C
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Jun 7, 2017
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CNeufeld wrote: The answer is somewhere between "it depends" and "its complicated". It depends on the lease with the landlord and the desire of everyone involved.

C
The legal obligations do not depend upon people's desires.

No idea what OP means by "proper way". What should landlord do, or what should remaining tenant do, or what should absconding tenant do? Frankly, the absconding tenant has put the remaining tenant in somewhat of a do or die situation, and it may sound harsh but he should probably bail as well in the middle of the night since he cannot realistically pursue the fellow who left. Flame suit on.
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First run the screen on the new guy. Much will depend on the results.
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Furcorn wrote: The legal obligations do not depend upon people's desires.

No idea what OP means by "proper way". What should landlord do, or what should remaining tenant do, or what should absconding tenant do? Frankly, the absconding tenant has put the remaining tenant in somewhat of a do or die situation, and it may sound harsh but he should probably bail as well in the middle of the night since he cannot realistically pursue the fellow who left. Flame suit on.
Care to point out where I said I was talking strictly about "legal obligations"? The final outcome will depend on the desires of everyone involved. The landlord may have the right to terminate the lease entirely if one person wants to cancel the lease (and depending on how the lease is structured), but they may or may not want to exercise that right. Or if the tenants are in a month-to-month lease, they may just decide they want to terminate this lease, and the two that want to be roomies will get a new lease. Their "legal obligation" is limited to giving notice and paying for that portion of their rent.

C
[OP]
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The lease is using the standard lease contract form, and the original acceptance was based on the fact that the income of a single tenant is not enough to cover the rent, but e combined income is.

So it boils down to two possible outcomes:

1. The new tenant doesn’t pass screening; then the landlord can terminate the lease, correct?

2. The new tenant passes screening. What is the legal way to approach so that both sides remain in the same position as they were before?
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Technically, the landlord has no say on whether a tenant has a room-mate or not, or whether that room-mate pays any portion of the rent (or not). And there's no "standard screening" that anyone can fall back on to pass/fail a particular tenant. A landlord can decline a tenant's application for many reasons, many of which have nothing to do with income.

On the other hand, there's nothing saying that a landlord can terminate a valid existing lease simply because he doesn't feel the tenant(s) can no longer afford it (for example, if the landlord rents to a couple, and they become pregnant and thus are down to one income).

Take a read through this blog posting by a lawyer familiar with the RTA in Ontario:
https://ontariolandlordandtenantlaw.blo ... ed-me.html

In particular, this set of comments refers to a similar situation as you describe; one tenant wanting to move out, the other tenant wanting to remain, and a new tenant to be brought in:
https://ontariolandlordandtenantlaw.blo ... 3292400743

If you read through that set of comments (and the many others on that blog posting), you'll see that it's not a simple answer. Here's another couple:
https://ontariolandlordandtenantlaw.blo ... 3271656299
https://ontariolandlordandtenantlaw.blo ... 5633752103

This is why I said it depends on the desire of everyone involved. If the one tenant wants to get out and doesn't care what happens after that, they can simply file an N9 form with the landlord and leave the other tenant and landlord to work out a new deal. If push comes to shove, it might involve an LTB hearing to determine whether the existing lease was terminated entirely, which means that a new rental rate could be set and the landlord would have the ability to "just say no" to the new roommate's application. If the existing lease isn't considered to be terminated, then the landlord has no say on any new roommate that's brought in, and that roommate doesn't have to sign anything. The question of whether the lease is terminated is unclear, as per the links I posted above.

If the tenant that wants out trusts the new roommate and the landlord is making a stink about allowing the new roommate, then that tenant can simply remain on the lease and move out, and the new roommate can move in. The landlord would have no say over this. However, the tenant who moved out could still be liable for any rent shortages or damages that occur, so they'd be foolish to agree to this (IMHO).

C
[OP]
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CNeufeld wrote: Technically, the landlord has no say on whether a tenant has a room-mate or not, or whether that room-mate pays any portion of the rent (or not). And there's no "standard screening" that anyone can fall back on to pass/fail a particular tenant. A landlord can decline a tenant's application for many reasons, many of which have nothing to do with income.

On the other hand, there's nothing saying that a landlord can terminate a valid existing lease simply because he doesn't feel the tenant(s) can no longer afford it (for example, if the landlord rents to a couple, and they become pregnant and thus are down to one income).

Take a read through this blog posting by a lawyer familiar with the RTA in Ontario:
https://ontariolandlordandtenantlaw.blo ... ed-me.html

In particular, this set of comments refers to a similar situation as you describe; one tenant wanting to move out, the other tenant wanting to remain, and a new tenant to be brought in:
https://ontariolandlordandtenantlaw.blo ... 3292400743

If you read through that set of comments (and the many others on that blog posting), you'll see that it's not a simple answer. Here's another couple:
https://ontariolandlordandtenantlaw.blo ... 3271656299
https://ontariolandlordandtenantlaw.blo ... 5633752103

This is why I said it depends on the desire of everyone involved. If the one tenant wants to get out and doesn't care what happens after that, they can simply file an N9 form with the landlord and leave the other tenant and landlord to work out a new deal. If push comes to shove, it might involve an LTB hearing to determine whether the existing lease was terminated entirely, which means that a new rental rate could be set and the landlord would have the ability to "just say no" to the new roommate's application. If the existing lease isn't considered to be terminated, then the landlord has no say on any new roommate that's brought in, and that roommate doesn't have to sign anything. The question of whether the lease is terminated is unclear, as per the links I posted above.

If the tenant that wants out trusts the new roommate and the landlord is making a stink about allowing the new roommate, then that tenant can simply remain on the lease and move out, and the new roommate can move in. The landlord would have no say over this. However, the tenant who moved out could still be liable for any rent shortages or damages that occur, so they'd be foolish to agree to this (IMHO).

C
I found this https://landlordselfhelp.com/frequently ... assignment

Since basically the leaving tenant wants to be off the hook, he cannot sublet. Hence the only option would be assignment of his part of the lease.

Then providing the landlord denies the assignment request in general, the tenant has the right to terminate the lease within 30 days.

If the landlord agrees to assignment in general, he can still refuse particular person after screening (what happens in this situation is unclear).

But if the new tenant passes the screening, then it’s easy:

What forms are required if one of two co-tenants moves out and a new tenant moves in?
There aren’t any particular forms to use. Ensure the outgoing tenant gives you a letter confirming that he/she is leaving. With regards to the new person, you can include an addendum to the lease stating that this new person will become a new tenant and assume the outgoing tenant’s share of the lease
.
iamalittlepepper wrote: Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
tcjsqls wrote: you have no ideas how a report of stolen credit card (...) affect your credit. Happened twice in your history, that bank won't issue a credit card for you
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djredhat wrote: I found this https://landlordselfhelp.com/frequently ... assignment

Since basically the leaving tenant wants to be off the hook, he cannot sublet. Hence the only option would be assignment of his part of the lease.

Then providing the landlord denies the assignment request in general, the tenant has the right to terminate the lease within 30 days.

If the landlord agrees to assignment in general, he can still refuse particular person after screening (what happens in this situation is unclear).

But if the new tenant passes the screening, then it’s easy:

What forms are required if one of two co-tenants moves out and a new tenant moves in?
There aren’t any particular forms to use. Ensure the outgoing tenant gives you a letter confirming that he/she is leaving. With regards to the new person, you can include an addendum to the lease stating that this new person will become a new tenant and assume the outgoing tenant’s share of the lease
.
The thing is, I don't think you can assign "part" of a lease. The link you provide doesn't use the term "assignment" when it discusses one of two tenants moving out. The two tenants on the lease could assign the entire lease to someone new, with the conditions you mention on getting approval.

And the part about a tenant moving out is one of the possibilities a landlord has. Some landlords would prefer to just terminate the entire lease and start over with a new tenant (or start over with one of the existing tenants and the new tenant). The reason for this is that it allows them to reset the rent price without worrying about the rent increase limit.

C

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