The Rental Agreement

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The Rental Agreement: Part One

Section By Section

The following is for information only and should not be taken as law.
Please refer to the appropriate jurisdiction in your area.

Most important to a Rental or Lease Agreement is that:-

 – IT IS IN WRITING! –

Regardless of what the renter, landlord or agent infers, implies or says, it ain't so unless it is in writing; signed, sealed and delivered. Hand shake agreements are only for honest people and crooks.

Binding Contract

1. AGREEMENT. The parties to this Residential Tenancy Agreement (from now on referred to as “this Agreement”) agree to be legally bound by and comply with the terms of this Agreement. The parties understand that where in this Agreement the words, “the Act”, are used, they refer to the (Governing Legislation) as amended and Regulation made from time to time.

This introduction binds both the tenant and the landlord to comply with all the points contained in the entire agreement. No part of this agreement can be contradictory to or supersede the governing legislation in the jurisdiction in which the rental unit is located.

Example: If you rent a property in Saskatchewan from a landlord who lives in Alberta, even though you entered into the agreement in Alberta, and signed the papers in Alberta, the Saskatchewan Legislation supersedes. This has happened from time to time in provincial border communities like Lloydminster.

Parties Involved

2. BETWEEN: The Landlord (not the landlord's agent)

Landlord's Full Address AND: The Tenants (all parties of legal age should be listed)

Tenants address(es) upon signing the agreement.

Identification of Unit to be Rented.

3. RENTAL UNIT TO BE RENTED: Type of Unit: (apartment, townhouse, detached house, duplex, basement suite, etc)

Located At: Unit No., Street No., Street, City, Province, Postal Code. There should be no discrepancy as to what type of unit is being rented and where this unit is officially located.

In most Rental Contracts there is a very important declaration that is ommitted. A clause of the contract should read:

4. The Landlord, (Landlord's full name and Landlord's Full Address) does possess full ownership of (property and address) and has full legal authority to enter in to this lease. I (The Landlord's Agent's name), acting on behalf of (Landlord's full name) possess full and legal authority to enter in to this lease. Signature,__________ It is not difficult at all for an unscrupulous person to offer for rent a property which they do not have legal authority to lease. Even having this statement in the lease does not guarantee assurance. One thing it does do is makes the tenant aware of who the tenant is responsible to and who is ultimately responsible to the tenant.

Before entering into a lease or handing over monies toward the lease, make sure that the rental property is legal and the agent is for real and is who he says he is.

The rental unit should be registered with the district or city planning authority and information on ownership by address is usually made public upon inquiry.

Advise: If it is not registered; Don't rent.

All That Is Included

5. No furnishings, equipment, facilities, services or utilities will be provided by the landlord and included in the rent EXCEPT those indicated below, which the tenant agrees are in usable condition and which the tenant and his guests shall use carefully.

Appliances: Fridge: (YES / NO), Stove: (YES / NO), Dishwasher: (YES / NO), Washer and Dryer: (YES / NO), Hookups for Laundry: (YES / NO), Carpets: (YES / NO), Window Coverings: (YES / NO), Water: (YES / NO), Hot Water: (YES / NO), Heat: (YES / NO), Garbage Collection: (YES / NO), Sewage Disposal: (YES / NO),

Parking space: (YES / NO), Space No.____ . Utilities Payment; See clause ??

The landlord must not take away or make the tenant pay extra for a service or facility that is already Included in the rent, unless a reduction is made in accordance with the Act.

Upon 30 days written notice, the landlord may change or remove any of these services, if the method in which they are supplied to the landlord changes.

This clause of the agreement identifies exactly the items and services to be included in the lease for the rental price stated in the lease. Items and services indicated cannot be terminated or removed without just cause and agreed to by both tenant and landlord.

The tenant has an obligation to protect the items and services against damage or loss and the landlord has the obligation to maintain the items or services in good usable condition.

Read: It Belongs to the Landlord; Use of Property

Duration Terms

6. The tenancy created by this Agreement STARTS ON __ day of Month, Year, and is for a fixed term ending on the __ day of Month, Year.

At the end of this time the tenancy will continue on a month to month basis, unless the tenant gives written notice to end the tenancy at least one clear month before the end of the term.

This clause sets the starting date of a tenancy which in most cases is 12 o'clock noon of the first day. In most jurisdictions a tenancy continues on a per month basis whether in writing or not. If for a set term, that term must be stated within the agreement. The fixed term part in this agreement is for the landlord's protection for the ability to collect liquidated damages if the tenant decides to move within the first year of tenancy.

NOTE: The times of end of tenancy at 12 o'clock noon of the last day and the Beginning of tenancy at 12 o'clock noon of the first day, is to allow the landlord time to do any repairs or maintenance required to rent the suite in a condition acceptable to both the tenant and landlord.

7. LIQUIDATED DAMAGES: If the tenant ends the fixed term tenancy before the end of the original term as set out above, the landlord may, at the landlord's option, treat this Agreement as being at an end. In such event, the sum of $XXX.oo will be paid by the tenant to the landlord as liquidated damages, and not as a penalty, to cover the administration cost; of re-renting the rental unit. The landlord and tenant acknowledge and agree that the payment of liquidated damages will not preclude the landlord from exercising any further right of pursuing another remedy available in law or in equity, including, but not limited to, damage to the rental unit or residential property and damages as a result of lost rental income due to the tenant's breach of any term of this Agreement.

There is a cost associated with changing tenancies, be it advertising, administrative or clerical. The landlord has a right to expect a profitable duration of tenancy and in most jurisdictions that tenancy is deemed as one year. The amount of liquidated damages is the average cost amount of changing tenancies, usually $100.00 to $250.00. Half of one month's rent or the full amount of the security deposit is in most cases extreme and may be challenged in court.

The landlord will be asked to prove his liquidated damages, but remember, this is an average costs, not individual costs to any single change of tenancy. If so happens that the landlord fails to find a replacement tenant, it is his loss not the former tenant's unless there is mitigating circumstances which usually are brought forth as physical damages or material loss.

The tenant is still bound by contract to give one clear month notice to end the tenancy. A clear month being the last day of the month for the last day of the following month.

Monetary Terms

8. RENT: The tenant shall pay the rent to the landlord in advance on or before the first day of each month. Basic Living Space $_____.00 Subject to Clause xx, Additional Occupants, the tenant agrees that for each additional occupant in the rental unit, not named in Clause above, the rent will increase by $_______. month, effective from the date of occupancy. The acceptance by the landlord of any additional occupant does not change this Agreement or create a new tenancy.

This clause sets out the amounts due as rent each month and the terms upon which they are paid. The landlord is not at obligation to accept an additional occupant.

Deposits

9. SECURITY DEPOSIT AND PET DAMAGE DEPOSIT. A Security Deposit in advance in the amount of $_____ paid on (date). A Pet Damage Deposit in the amount of $_____ paid on (date). The landlord agrees

1. that the security deposit and pet damage deposit must each not exceed one half of the monthly rent payable for the rental unit
2. to keep the security deposit and pet damage deposit during the tenancy and pay interest on same in accordance with the regulation, and
3. to repay the security deposit and pet damage deposit and interest to the tenant within 15 days of the end of the tenancy agreement, unless the tenant agrees in writing to allow the landlord to keep an amount as payment for unpaid rent or damage, or the landlord applies for arbitration under the Act within 15 days of the end of the tenancy agreement to claim some or all of the security deposit or pet damage deposit. The 15 days period starts on the later of the date the tenancy ends, or the date the landlord receives the tenant's forwarding address in writing,
4. If the landlord does not comply with ©, the landlord may not make a claim against the security deposit or pet damage deposit, and must pay the tenant double the amount of the security deposit, pet damage deposit, or both.
5. The tenant may agree to use the security deposit and interest as rent only if the landlord gives written consent.

At the end of the tenancy the landlord may retain from a security deposit or a pet damage deposit any unpaid amount that an arbitrator has ordered the tenant to pay to the landlord.

These clauses and subclauses set out the amounts due as deposits and the terms upon which they are kept, retained, forfeited and/or released back to the tenant.

The part of sub clause © that reads; “the tenant agrees in writing to allow the landlord to keep an amount as payment for unpaid rent or damage” does not grant the tenant permission to use the security deposits as part of the final month rent for in sub clause (e) it states clearly; “only if the landlord gives written consent”. The tenant would still be obligated to pay the full month rent upon giving notice to terminate the tenancy or be in breach of a material term of the agreement.

The tenant has an obligation to provide a forwarding address to the landlord upon vacating the tenancy.

The landlord has an obligation to return all deposits in timely fashion.

That's enough for one page; Go to Agreement Part Two