Real Estate

Tenant wants to void lease after signing and paying

  • Last Updated:
  • Sep 10th, 2020 9:20 am
[OP]
Newbie
Sep 8, 2020
2 posts
1 upvote

Tenant wants to void lease after signing and paying

Hi all, first time landlord here. A tenant signed the lease and etransferred most of the first and last months rent. Move in was to be for October 1st.
Tenant didnt realize 60 days notice was required and current landlord is not willing to waive that.
Now tenant is asking for full refund.
I am fine trying to find a new tenant but its Sep 9th and I dont know if I can find somebody for October 1 anymore. Am I able to pro-rate a portion of the funds she gave me in case somebody moves in later than October 1st?
7 replies
Deal Guru
User avatar
Mar 23, 2008
11502 posts
7791 upvotes
Edmonton
You don’t give a location, so all I can really say is call your loca LTB office, and see what they say.

How long ago did the tenant sign the lease with you?

C
Sr. Member
Mar 10, 2004
604 posts
191 upvotes
I would keep the 2 months. And be willing to tear up the agreement.
Member
Dec 17, 2009
391 posts
60 upvotes
Work with her and find a new tenant, it’s really up to you how lenient you want to be because you don’t have to. Personally, I would work with her, but I would not give a refund for months that she tied up the space since you lost out on money those months.
Member
Jul 22, 2015
281 posts
109 upvotes
Toronto, ON
I would find a new tenant for Oct 1st but if you can't keep trying until you do. Then give back whatever portion the unit sat vacant. The **** they gonna do? Take you to LTB? It will get thrown out...
Deal Fanatic
User avatar
Sep 8, 2007
8727 posts
9544 upvotes
Way Out of GTA
Sensible thing would be to get an agreement signed to the effect that the previous signed lease is now void and if someone suitable is found for Oct 1st they would get a full refund. If a new tenant is found later a prorated refund will be given. You don’t want the other lease out there in existence such that they could show up Oct 1st if they changed their mind trying to move in.
"It is in times of great fear or greed that the most opportunity exists."
[OP]
Newbie
Sep 8, 2020
2 posts
1 upvote
Thank you all. This is in Toronto and I called LTB but they said they only advise on issues once tenant moves in and cant advise on this. I have reposted the apartment and will try to rent for October 1st but i wasnt sure if I would be allowed to pro-rate any portion of what she gave if I dont find anybody for October 1st. I am not looking to keep her money just want to find another suitable tenant and not lose out in another month of rent.
Deal Addict
User avatar
Jan 2, 2012
3913 posts
1772 upvotes
Toronto
mrssmith2020 wrote: Thank you all. This is in Toronto and I called LTB but they said they only advise on issues once tenant moves in and cant advise on this. I have reposted the apartment and will try to rent for October 1st but i wasnt sure if I would be allowed to pro-rate any portion of what she gave if I dont find anybody for October 1st. I am not looking to keep her money just want to find another suitable tenant and not lose out in another month of rent.
Yes you are legally allowed to pro-rate the funds you return, based on when you can find a new tenant to move in and how many days after Oct 1 the unit sits vacant. You can also add in fees/expenses for you to re-list and market the unit, do background/credit checks to screen potential renters, etc and deduct this from the funds returned.

You have a legal obligation to try and re-rent the unit as quickly as possible to mitigate damages, but technically if can't find a new renter by Dec 1 you can then continue to bill the old renter indefinitely until you get the unit occupied. Through you would probably have to sue them for anything beyond the 2 months you already have and is probably not worth it.

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