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Landlord stories

Both landlord and renter have an obligation to follow the terms of the lease

By Joseph Marovitch

October 1, 2021

This past month has been a rollercoaster of interest. As there are not enough homes to meet the demand, many brokers are dealing with rentals. Residential rentals consist of the landlord, known as the lessor, and the renter, also known as the lessee. Each has obligations that, if not followed, can be resolved by the Tribunal administratif du logement (Régie du Logement) in Quebec. Of course, it is always preferable to find a resolution between the two parties first, if possible.

The lessee has the obligation to pay the agreed-upon rent on time, keep the unit, whether it is an apartment or house, in good, safe, and clean condition, and not disturb the neighbours. There are other obligations of the lessee, however, these are the main ones.

The landlord/lessor has the obligation to provide whatever is indicated in the agreed-upon lease that is signed by both the lessor and the lessee. If the lease states that the lessor will provide the unit but not furniture, heat, electricity, or appliances, then the lessee, if they signed a lease to this effect, is responsible for those items.

Residential rentals consist of the landlord, known as the lessor, and the renter, also known as the lessee. Each has obligations that, if not followed, can be resolved by the Tribunal administratif du logement (Régie du Logement) in Quebec.

If the landlord/lessor agreed, in a signed lease, to include appliances, electricity or any other object or utility, then the landlord has the obligation to ensure those included items are present in the unit.

Should a lease include appliances such as a stove, fridge, dishwasher, washer/dryer, and heating, these items must be in working order at the commencement of the lease. During the term of the lease, should these items break down via wear and tear and no fault of the lessee, the landlord is obligated to repair or replace the broken items in a timely manner. However, should the heat stop working at a time when the weather is cold, the landlord/lessor must address the issue immediately.

Landlords cannot rent a unit, collect the rent, and wash their hands of anything else. The landlord is responsible for their tenants.

It should also be noted that there are specific rules in Quebec regarding eviction. In Quebec, unless the tenant provides written notice that they will depart at the expiration of their lease, the lease has tacit renewal or automatic renewal unless stipulated and agreed to otherwise in the lease.

A tenant can be evicted for non-payment of rent or via renovation, or if the landlord intends to move into the unit, however, some protocols must be followed for these events to occur, and they take time.

Another interesting issue is landlords who employ brokers to rent their units. There is a brokerage contract between a landlord and a real estate agency that states the terms of the agreement. With the agreement signed, the broker advertises the unit on Centris, other online social media and the newspapers. The broker screens potential tenants and arranges visits to show the unit. The broker then negotiates the terms of the lease including the rent amount, inclusions, and duration of the lease.

‘Another interesting issue is landlords who employ brokers to rent their units. There is a brokerage contract between a landlord and a real estate agency that states the terms of the agreement.’

As well as the rental price, terms of the lease and conditions, there is the broker/agency’s compensation. The standard compensation is the equivalent of one month’s rent plus applicable taxes for every twelve-month term in the lease. The commission is payable upon the broker or brokers fulfilling their obligation and the lease being signed.

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Next article: The real estate market and passports

State of the market

Over the past few months, with the shortage of home listings, brokers have been contacting homeowners to find out if they would consider selling. In searching out the owners of homes in NDG, Westmount and other areas, a trend has been detected. Several of these single homes are owned by corporations, and not individuals. Many of these single homes have been purchased during the pandemic. The reason for this is apparent. Interest rates have been so low that borrowing money cost next to nothing and the future boom in real estate will enable these properties to significantly rise in value. If a corporation suddenly has a real estate division, it is no wonder.

‘Interest rates have been so low that borrowing money cost next to nothing and the future boom in real estate will enable these properties to significantly rise in value.’

Real estate is one of the best and safest investments. Obviously, this is not a secret. However, it may be an issue for the average buyer, especially if open bidding comes to fruition.

Have a great week!

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Other articles by Joseph Marovitch