Instructions—Condo. Lease (con’t)
Paragraph 4.7 reinforces the prompt payment provision by providing a $ 20.00 administrative fee www.realequity.ca Since 1994
(the maximum allowed by law) for NSF cheques in addition to the landlord’s bank charges (if
Paragraph 5—Restrictions on Change of Locks
Paragraph 6—Repair Obligations Maximum protection for
Paragraph 6 distinguishes between those repairs that are the Condominium Corp.’s responsibility
as opposed to those which are the responsibility of the landlord. Paragraph 6.1 requires the Ontario Condominium
tenant to notify the appropriate party of any defect so as to avoid further property damage etc…
Paragraph 7—Subletting Restriction
A “maintenance-free” lease struc-
Paragraph 8 - Additional Reasons for Entry
ture that allows you to manage your
Paragraph 8 provides for additional reasons for entry on 24 hours notice in addition to those
permitted by the legislation. This is itself authorized by the legislation itself subject to a own condominium …
“reasonableness” standard. Paragraph 8.1 i) resolves any ambiguity surrounding entry in further-
ance of marketing or sale by expanding the entry for showings to include entry for the purpose of
taking listing information and photographs etc… 8.1 ii) further expands on the permissible rea- ...without the cost of a management
sons for entry by including such reasonable inspections as are necessary to ensure compliance fee.
with the agreement or building rules.
In condominium buildings, the building management will sometimes be required to enter the
unit to comply with fire regulations, building maintenance or other requirements. Paragraph 8.2 ...and backed by information and le-
clarifies once more that the management is not acting as the agent of the landlord in such cases,
gal services from one of Ontario’s
warns that the management may employ its own procedures and holds the landlord harmless for
any such entry. most prominent Landlord and Tenant
Paragraph 9 – Other Covenants
Condominium Tenancy Agreement
Paragraph 9 contains various standard covenants many of which are most likely part of the Con-
dominium Rules in any case.
"If you're a tenant being scammed by
a landlord, there are dozens of
agencies willing to go to bat for
Paragraph 10 – Municipal Taxes you, but if you're a landlord being
If the tenant elects for an increased school assessment they are required to reimburse the land- scammed by a tenant, you're on your
lord accordingly. own," Trent says”.
2/27/93, P. A1
Paragraph 11 – Termination
TRENT & ASSOCIATES
20 Bay Street, # 1205
Paragraph 11 reiterates the provisions of applicable legislation respecting the statutory renewal
and/or termination of the tenancy. Toronto| ON
In Ontario tenancies automatically renew month-to-month on the expiration of any fixed term
lease. This effectively gives tenants the right to remain in the premises until such time as they
*Allistair A. Trent is licensed to provide legal services in
Tel: (416) 361-7157
themselves give notice to leave or sufficient cause exists to evict them.
Ontario, Canada and has represented landlord’s in some of Fax: (905) 248-3216
Paragraph 12—Liability for overholding Ontario’s most contentious tenancy disputes since 1990. Cel: (416) 821-4225
For various reports see: ww.realequity.ca/media.pdf firstname.lastname@example.org
Contains provisions for if the premises are not vacated on time
The “Maintenance-Free” Lease Instructions—Condominium Lease
The header of the agreement contains a space for the landlord’s name and address. The address
As an investment vehicle Real Estate can take a number of forms. Some, such as specified must be that to which documents and notices to the landlord are to be directed.
rooming houses or renovation projects are a full time business requiring daily While many landlords are concerned about privacy, if the address for delivery of documents is not
management and attention. given, the tenant has no obligation to pay rent until such time as it is !
One of the prime benefits of being a condominium investor is having building
Paragraph 1 – The Premises
maintenance the majority of other “landlord” functions taken care of by building
Paragraph 1.0 contains a space to fill in the municipal address and unit number and further clearly
management. Aside from renting and dealing with in-suite repairs (such as appli-
specifies the nature of the interest being leased.
ances), condominium investing should be a relatively passive experience.
Paragraph 1.1 further specifies the actions of the Condo Corp. are beyond the landlord’s control
and insulates against liability for such actions.
When it comes to renting and dealing with tenants, the rights of Ontario land- Paragraph 1.2 addresses a common problem with condominium buildings in that it difficult to evict
lords and tenants are largely dictated by a comprehensive set of regulations. The for tenant misconduct or breach of building rules. This paragraph clarifies that a breach of the
regulations apply regardless of any agreement to the contrary. As a condomin- building rules shall constitute an actionable interference with the landlord’s legal interest for the
ium investor (ie. one who does not live at the property themselves) your rights purposes of the legislation.
are largely limited to protecting your economic interests: NOTE: To be enforceable a copy of the rules must be given to the tenant together with the tenancy
Paragraph 1.3 contains a space to insert the number and type of parking spaces included.
To have the rent paid on time.
Not to have the property damaged other than by normal wear and
tear. Paragraph 2- Use of Premises
Not to be exposed to complaints or threats of action from the condo- Paragraph 2 specifies that the premises are being rented for residential purposes only. While it is
minium corp. or others as a result of the tenants actions. not possible to prohibit commercial activities such a home based businesses the provision insulates
against commercial or other consequential losses arising from such use.
To get the property back in an orderly manner on termination of the
Paragraph 3 – Term of Tenancy
There are specified procedures to protect the above rights (such as the right to Paragraph 3 contains spaces to insert the initial term of the tenancy (1 -12 months). Thereafter the
inspect) and specific procedures that must be followed if any are breached. tenancy will renew automatically in accordance with Ontario law unless the tenant gives notice to
vacate or legal grounds to evict exist. There are no fixed term leases in Ontario (except for student
Other than by the specified procedures communicating with the tenants has
housing under specific circumstances set out in the regulations).
little benefit as compared to considerable risk: The landlord and tenant relation-
ship is inherently adversarial and a breeding ground for personality conflict. Paragraph 4 – The Rent
Paragraph 4.1 contains a space to insert the net discounted rent for the premises and further
As a condominium investor, maximum performance means having the rent paid specifies that the rent being charged is subject to a 2% prompt payment discount. The discount is
on time, the property returned in a good condition and in an orderly manner at permitted by the Regulations and is useful in encouraging payment on time. Where the rent is not
paid on time the discount is lost and the rent for that month is arrived at by dividing the dis-
the end of the lease, and never hearing from the tenant otherwise.
counted rent by .98 (rounded down to the nearest cent).
Paragraph 4.2 deals with the pro-rated rent for initial period of occupancy. To calculate multiply
Our Condominium Tenancy Agreement is designed to assist in that objective to the monthly rent by 12 to get the yearly rent then divide by 365 to arrive at the daily rent. Multi-
the extent possible. The ways in which it does so are described on the following ply the daily rent by the number of days.
pages together with detailed instructions for completing the agreement. Paragraph 4.3 deals with payment and post-dated cheques. The Regulations allow the discount for
rent paid on time or in advance. While the Act prohibits requiring a tenant to deposit post dated
With the foregoing in mind I hope that you will find your investment cheques, doing so is a great way to ensure payment on time and eligibility for the discount. Of
experience both profitable and uneventful . The two are often one course, if the tenant wants to pay month to month it is their prerogative to do so with a corre-
sponding obligation to ensure timely receipt of the funds.
and the same.
Paragraph 4.5 contains space to specify which additional services will be paid for separately by the
tenant. It is important to note that such charges are not to be considered rent for the purposes of
Allistair A. Trent the legislation and cannot be made the subject of an eviction for failure to pay.