Tenant wants to moveout immediately and asking for last monthrent
Real Estate Agent · Windsor, Ontario · Member since 2016 · 95 posts · 65 votes
Hello Friends,
I encountered with the first tenant problem.
I own a 3bed room unit in Windsor, Ontario, Canada. Rented, tenant moved in on 1st of this month, signed the 1 year lease(have all the papers signed), paid 1st and last month rent. a week after she moved in she complained about cockroaches(fully renovated in April, don't know where they came from), I took an Immediate action(Abell pest control - 1 year premium treatment), they said it will take couple of weeks to kill everything, also had 2nd treatment(Abell) 2 days ago. Now all of sudden today morning I got a text for her saying I want to move out immediate feeling unsafe in this area(saying someone cursed her husband, calling names and saw some drug dealer in the corner of the street which she never said/complained anything till now), asking how will pay me the last month rent?
I haven’t replied her anything, can anyone please suggest me how to proceed with this problem.
In advance, thank you very much for taking time to answer my question
Hey,
So you have first and last month's rent (May and June) right?
If that's the case and the money was deposited in your account and there is no way she can "chargeback" or reverse the payment, I would tell her that since she is paid up until the end of June, you will search for a new tenant to move in for June 1. If you find someone and collect first and last from the new tenant, then she will get her last June rent back... but if you don't, find someone, then she won't get anything back.
Check in with other landlords in your area of Ontario, Canada for their take on this, as there may be habitability standards required in your jurisdiction that your unit may or may not meet.
If I encountered this situation, first I would check if the tenant's concerns were well justified. If they were, then I would let her out of the lease without penalty. I would consider what I would do if it were a month-to-month rental agreement and allow her to give her notice to vacate based on that.
I would negotiate a move-out plan. I would consider her last month's rent to be June, even if she vacated by the end of May, because it's so close to the end of the month. But if she left the place clean and without damages I would return her full security deposit.
Well you can start by reminding her that your lease you all signed is a legally binding contract. Any changes to it must be agreed on by all parties.
That is a good place to start the conversation. With that as your starting point I would recommend finding a way to let her out of the lease that doesn't cause you to lose any money.
I usually enlist them to find me a qualified replacement tenant, who I then screen just as I would normally screen anyone else. The new person must accept the apartment as-is and start tenancy the day that the leaving tenant vacates. So I lose no money on vacancy or turnover costs.
If she really wants to go she will help make it happen.
Hey,
So you have first and last month's rent (May and June) right?
If that's the case and the money was deposited in your account and there is no way she can "chargeback" or reverse the payment, I would tell her that since she is paid up until the end of June, you will search for a new tenant to move in for June 1. If you find someone and collect first and last from the new tenant, then she will get her last June rent back... but if you don't, find someone, then she won't get anything back.
In California there is a civil law called the Implied Warranty of Habitability. ( California Civil Code 1941.1) In part it states that a rental must be free of pest have heat running water plumbing windows doors etc all in good working order. The tenant could take you to court for a breach of that law. It's my understanding that in Canada the courts side with the tenant a lot of the time. If there's any kind of law on the books in your neck of the woods TREAD VERY CAREFULLY FRIEND, God forbid the tenant takes you to court and on the morning of your hearing the judge and Mrs. judge have a knock down drag out over her dead beat brother and unfortunately YOUR A DEAD RINGER FOR THE DEAD BEAT BROTHER. Hey don't laugh it happens a lot more than you'd think. In which case you could be ordered to pay for her moving cost or whatever the judge comes up with. If there are pest in the rental, take care of it which you have, THEN explain that you will try to get another renter in and whatever time in June they occupy the unit you'll refund her. I think it's not unheard of that if you rent a unit you can pretty much expect to be there a minimum of 2 months first and last months rent. She looked at the unit before moving in and didn't see signs of pest. AS for the other complaints she has, Take note and do your best to get her out and on her way without any big issues. It will probably be cheaper in the long run,Best of luck
Are they on government assistance?
It does sound like you have a problem tenant. Do not return their LMR while they still occupy. You may find that they never leave and never pay again. Whatever agreement you come up with, if they don't pay on June 1 and are still there, post an order to pay rent owed.
You need to act fast because you are so close to the end of the month. Most likely any tenant you find now is not a good one, but it could happen. Good tenants, people who have control of their lives, rent well in advance.
Offer them to leave by June 1, and you'll return their LMR minus the cost of advertising and credit checks for replacements and prorated unused rent. That's about as fair as it gets.
Most of this decision making hinges on my first question. If the answer is yes, just get them out.
You have a signed lease and she must give proper notice to vacate. Her reason for wanting to leave is not justification to legally break her lease in Ontario. Based on what you have stated you have responded appropriately allowing her no grounds to break her lease
She must provide 60 days notice in writing clearly stating the termination date and it must be signed by all tenants in the unit.
Assuming she provides you notice before the end of May her earliest termination date will be the 30th of July. In Ontario we do not go by days we go by rental periods (months).
She will be required to pay June and July rent and you refund her LMR when she hands over the keys. In Ontario the LMR can only be applied to the actual last month which under a normal lease is defined. Since she is breaking her lease you have no guarantee she will leave at the end of July so she must pay June and July rent as usual. If you do not find a replacement tenant July will not be her last month. Never apply a LMR when a tenant is breaking their lease.
You are responsible for finding a replacement tenant and must show you have made a effort to do so with proof of advertising, If you do not find a replacement tenant for August she will be responsible to continue paying rent until you do find a replacement. If you agree and you find a replacement tenant before August 1st you may refund her money up to the date they move in. I would advise against rushing your screening to benefit her and aim for August 1st. Tenant screening, as this tenant proves, is extremely important in Ontario.
You may also charge her for any costs you incur in finding a replacement tenant.
Keep in mind this tenant is violating her lease and you owe her nothing in regards. to fair treatment.
If she refuses to pay June or July rent immediately file a L9 with the LTB to protect yourself. Once you have filed the L9 you will be protected regardless of hat she does. (at the hearing be sure to ask that the tenant pay the $170 filing fee. She will owe you that from the minute you pay it regardless of whether she pays her rent or not.) Do not ever use the L1/N4 as this will absolve her of owing you any money.
Tell her what she is responsible for, 60 days notice to end of July, rent till replacement found, refund LMR with key return after July 30th. Send it to her in a written notice as well. Refer her to the Ontario RTA.
Thank you very much friends (@Max T. @Daniel Massicotte @Melissa McGuire @Matt Geerts @Thomas S.)
After reading all your suggestions, I replied her back with confidence. here's how conversation went between us.
Me: According to Landlord Tenant act you have to give me 60 days written notice (N9 form) saying you want to end the lease, which means that you will need to pay June month rent and then will use the last month rent for next month (July).
Tenant: She replied me back saying yes I went through the Ontario Landlord Tenant act, there it says if landlord willing to agree for ending the lease I can do that, so can you use the last month rent for June and we will move out on July 1st?
Me: I know you guys are nice people, I will do my best to help you, let do this send me the written notice to end lease before end of the month, you have to pay me the next month(June) rent, I will return the last month rent on day you vacant the place after inspecting the house.
Tenant: Thank you very much for willing to help us, I will talk to my husband and will back to you.
I haven't heard back from her yet, but I sure she understood legally she can't leave with out me agreeing.
Once again, thank you all for taking time to answer, really helped a lot.
That's sound pretty reasonable, I hope all goes well for you and the tenant.
Well done. It sounds like everyone is being reasonable.