Housing Lease: All You Need To Know About Lease Management

The housing lease is a legal document that protects the owner of a rental property, as well as the tenant. This acts as an agreement setting out, among other things, the rental duration, the price of the rent, as well as the building rules.

Here’s what you need to know as a property manager:

Lease Management: Lease Transfer and Subletting

If a tenant wishes to leave their apartment before the end date provided for in his lease, the landlord reserves the right to refuse to terminate the contract. The tenant then has the choice between two options: either they can sublet said apartment, or they assign their lease.

Here’s everything you need to know if you find yourself in this type of situation

Subletting or terminating the lease?

Subletting can be the ideal solution for a tenant who temporarily leaves their , since they can eventually move back in. The tenant who sublets is responsible for lease for its entire duration

  • He remains responsible for payments.
  • He must ensure that the apartment is clean, habitable and in good condition.
  • He is responsible for notifying the owner of the renovations must be carried out.

In the case of the assignment of the lease, the tenant does not renew his lease and is therefore no longer responsible for his apartment after the end date of the lease

In any case, the owner of the building also has certain rights.

The Owner’s Rights in the Event of Assignment of Lease or Sublease

The Civil Code of Québec provides for only three types of apartments for which subletting, or assignment of lease are prohibited, namely:

  1. Student residence;
  2. Low-renthousing;
  3. Family residence for which one of the two refuses subletting or assignment.

If none of these three types of apartments apply to your situation, the landlord has fifteen days to respond to the notice of assignment of lease or sublease. If he does not answer it, it means that he accepts the request by default.

The owner is under an obligation to accept the notice unless they have a reasonable cause such as an inability to pay or a behavioral problem on the part of the tenant.

If there is a refusal without valid reason, the Tribunal du logement: (formerly the “ Régie du logement”) can force the owner to accept the request.

Lease Management: The Lease Renewal

A lease renewal is done automatically if the conditions of the latter do not change. However, if the landlord wants to apply changes upon renewal, then the process is a bit different.

Changing a lease and increasing the rent are processes governed by law. This regulation protects both the tenant and the landlord.

Amend a Lease

The landlord must send a written notice to the tenant within the prescribed time. This period changes according to the duration of the lease. For a lease lasting twelve months or more, the notice must be sent between three and six months before the scheduled renewal date. For example, if the current lease ends on June 30, the notice of change must be sent to the tenant between January 1 and March 31.

The tenant has one month, either to accept or refuse the modifications indicated in the notice, or to advise of the non-renewal of his lease. A lack of response results in the automatic renewal of the lease with the new conditions mentioned in the notice.

Rent Increase

The owner wishing to increase the price of their apartments must comply with certain rules. In addition to notifying the lessee in writing, within the prescribed period, it must be written in the same language as that of the lease and must contain:

  • The new proposed amount or the amount of the increase in dollars, or in percentage, compared to the previous price.
  • The new lease proposed duration.
  • The response time granted to the tenant.
  • Any other changes requested.

The notice issued must specify that the tenant may exercise his right to refuse the proposed price increase.In the event of a refusal on the part of the tenant, the owner must request an analysis from the TAL. It is therefore the TAL who will decide whether the proposed modifications are valid.

Owner and Tenant Obligations

The lease is a contract that protects both parties and forces them to respect a certain number of obligations. These rights and obligations affect many more elements than those related to prices and payment of rent.

The “Lease” section of the TAL site contains a more exhaustive list of the rights and obligations of each party. However, in general, these multiple obligations affect three main spheres: the location status, its use, as well as the comfort of the tenants.

1. Housing Condition and Repairs

From the start of the lease, the landlord must provide housing in good condition. This must be clean and habitable on the date agreed in the lease. They must have carried out all the necessary repairs beforehand and continue to maintain the apartment in good condition.

However, some repairs are the tenant’s responsibility. These are small maintenance repairs such as fixing holes left by the installation of decorations, for example. It is also the tenant’s responsibility to notify the landlord when more extensive repairs are needed.

At the end of the lease, the unit must be returned in the same condition in which it was delivered.

2. The Shape and Use of Housing

For the duration of the lease, neither the owner nor the tenant can make changes to the shape of the leased property. This means, for example, that neither can change the divisions of the apartment.

The use of the apartment must also remain the same for the duration of the lease. therefore, an apartment building cannot be transformed into a commercial building.

3. The Right to Tranquility

All residents of the building are entitled to « Relaxing premises ». Therefore, the landlord must ensure that the tenant enjoys calm and peaceful apartment and that they are not disturbed by other tenants. If they receive complaints that one of the tenants is too noisy, they must act. If he does not do so, he could receive a formal notice from the tenant suffering the damage. If the landlord acts and the noise problem does not stop despite their warnings, they could ask the TAL to terminate the lease of the said tenant.

If one of your tenant neighbors does not respect this right, start by talking to your landlord. It may also be useful to note the date and time when the excessive noise occurs. This will make a possible testimony before the TAL more credible if the situation is not resolved.

The Manager or Owner’s Many Tasks in Lease Management

Owning an apartment building involves a lot of responsibilities and logistics. Following the purchase of the property, they must manage the tenants and the building. Therefore, many owners entrust the administration of their buildings to an expert, the property manager.

gestion de bail locatif et gestion des baux d'immeubles locatifs

This person then takes care of various administrative tasks such as:

  • Negotiate and approve rental agreements and leases.
  • Check the credit bureaus of potential tenants.
  • Ensures that the rental price is in line with the market value.
  • Renew leases and follow up with tenants.
  • Ensure compliance with various contracts.
  • Coordinate the execution and monitor the of maintenance, repair, or renovation work progress.
  • Carry out the bookkeeping of the building (expenses and income)
  • Etc.

The property manager acts as the owner’s assistant; they wear many hats.

Fortunately, there are property management software to make the job easier. Hopem, for example, offers software that centralizes and simplifies the various daily operations related to rental property.

Electronic Lease: Saving Time and Money

If the management of a rental property represents a lot of day-to-day management, it is even more so during busy rental periods. Multiple tasks can be done remotely to save time. This is also the case with the signing of the shipment and the signing of the lease, which can be done remotely, thanks to the electronic lease.

What if this tool saves you the hassle of getting to each of your appointments on time? Creation of the legal document, signatures, data management, etc.: electronic leases allow you to do everything online! A real “game changer” that saves time and money!

* The advice given in this article is for informational purposes only, it does not constitute legal advice.

Follow Hopem