|
|
When the Tenancy Ends
Ending the Rental Agreement
When the rental agreement ends, it is important for the party that is ending the tenancy to give proper notice. Once again, the requirements vary in each province or territory in Canada, so it's important to check the rules for your area in the Provincial and Territorial Fact Sheets.
The Final Inspection
When a tenant moves out, you'll need to inspect the premises to see if there are any damages, beyond normal wear and tear. If you inspected the unit with the tenant when you moved in, locate your initial inspection checklist. Refer to this list to compare the condition of each room when the tenant moved out with the condition when he/she moved in. The departing tenant and the landlord should inspect the rental premises together; both should sign and keep a copy of the checklist.
If the rental unit passes your final inspection, the timely return of the tenant's damage deposit (if any) will be in order. If the place is in disrepair or unacceptably dirty, you will ask the tenant to pay for cleaning or damages by the tenant and/or the tenant's guests during their tenancy. As a landlord, it is important to review the Provincial Fact Sheet, as legislation related to deposits varies from area to area.
Returning the Deposit, with Interest
Rules governing deposits vary from province to province. In Quebec, landlords cannot collect a deposit. In Ontario, landlords may collect a rent deposit, but this is not a "security deposit", so, the landlord cannot use the rent deposit to cover the cost of damages. In some provinces, the Rentalsman office, not the landlord, holds the deposit for the landlord and tenant.
When a tenancy ends, the initially collected deposit is returned to the tenant, often by way of covering the cost of the last month's rent. Most areas have a set interest rate or an interest rate chart that specifies how much interest must be paid. However, in some provinces, like Alberta, interest must be paid to the tenant annually unless both parties agree in writing to have compound interest paid out at the end of the tenancy.
There is often a difference between the amount of the initial rent deposit and the rent as a tenant departs. If the tenant has not given the landlord additional money during the tenancy to increase the amount of the deposit, part of the interest owed, if applicable, is often used to cover the difference between the initial deposit amount and the amount of the last month's rent.
Rules on the use of a deposit to cover damages varies from area to area. Check the Provincial Fact Sheet to find out how the return of deposits is handled in your area.
Return to: For Landlords
or
Renting a Home
or
CMHC's Main Menu
Mike has answers to your questions and more professional tips to make your real estate transaction more pleasurable.
Call or e-mail Mike or click on "Ask Your Own Questions."
Mike can send you information on any Property Listed For Sale on the Multiple Listing Service in the Ottawa area. If you would like him to help you locate a home, please fill out his Information Request Form.
Surfing the Real Estate Board's web site or MLS.CA and found a house that you like but doesn't give you the civic address. Mike can also help. Just fill out his Would like an address form, please !
Or perhaps you are considering selling your home in the near future, he can also offer you a Free No-Obligation Market Evaluation Form.
|
|
|
Mike Hider
