How to Break Your Lease Early

When you finally secure that apartment/condo/basement and sign that lease, it can be a very exciting time! However, things may not always go as planned and if you end up signing a lease with a fixed term, you may find yourself having to end the lease early and move. Breaking your lease early (without penalty) can be difficult, especially if your landlord does not approve of it.

The Landlord and Tenant Board (“LTB”) in Ontario recognizes five different reasons a tenant may break their lease early without penalty: (1) You and your landlord agree to end the lease early; (2) Find another individual to assign the lease/unit to; (3) Have the LTB issue an order to end your tenancy agreement early; (4) You are the victim of sexual or domestic violence; and (5) You entered into a tenancy agreement with your landlord on or after April 30, 2018 and the landlord did not give you the lease using a standard lease form. As there are factors to consider within each option, we will break it down further. 

If you are looking to end your tenancy early, you are likely in a fixed-term tenancy. It is important to be aware of the distinction as there are two types of tenancy agreements: (1) A non-fixed-term tenancy agreement and (2) A fixed-term tenancy agreement.

Non-fixed-term Tenancy Agreement
A non-fixed tenancy agreement is an agreement between a landlord and a tenant that does not include an agreed upon end date. This means that the tenancy term remains open-ended and alterable. For example, if a tenant simply pays their rent monthly, their tenancy is considered a month-to-month tenancy. If the rent is paid daily or weekly, this would be referred to as a daily or weekly tenancy.

There are many benefits to a non-fixed-term tenancy agreement with a main one being the tenant having the option to end their tenancy almost immediately or within a short period of time. For tenancy agreements that have non-fixed terms, the agreement continues until either the landlord and tenant agree to end it, the tenant provides a termination notice, or the LTB issues an eviction order.

Fixed-term Tenancy Agreement
Much more commonly seen are fixed-term tenancy agreements. In this type of tenancy, the landlord and tenant agree on the start and end date of a tenancy. Furthermore, this means that the obligations and rights of both the tenant and landlord will remain in effect for the length of the fixed term. When searching for apartments, condos, or basement apartments to rent, 12 to 14 month fixed-term leases are typical. In this type of agreement, the landlord is obligated to provide the rental unit for a year, and the tenant is obligated to pay rent for that unit for the year. If either party does not meet their obligations, legal recourse is available.

If you sign a 12-month lease for example and it comes to an end, there are three scenarios that can unfold: (1) You simply remain in your unit and continue paying rent as your fixed term tenancy will automatically convert into a daily, weekly, or monthly tenancy depending on the frequency of your payments beforehand; (2) You provide your landlord with notice to end your tenancy and move out; or (3) You and your landlord both agree to sign a new fixed-term tenancy agreement.

Choosing to Move Out at the End of Your Tenancy Agreement
If you have decide to move out at the end of your tenancy, you must either give your landlord notice in writing of your decision or make/sign an agreement with your landlord to end your tenancy. When giving notice, you must use the LTB’s designated Form N9: “Tenant’s Notice to Terminate the Tenancy”.

If you don’t use the LTB’s required form, your notice may not be acknowledged, and this could cause an issue for you down the line should your landlord say you did not properly. Without providing proper notice, you could be responsible for paying rent until the date your unit is rented by another tenant, or until the earliest termination date that could have been put in a notice to end a tenancy, had you given the proper notice.

Termination Dates
It is also important to pay attention to termination dates when planning to move. You must advise your landlord of the last day you plan to live in the unit, and this is referred to as the termination date. In a fixed-term, you must provide your landlord with at least 60 days’ notice before the end of your lease and your termination date cannot be before the last day of the fixed term.

In a non-fixed-term lease, like a monthly lease, you must still give your landlord at least 60 days’ notice and the termination date must be the last day of a rental month. In a weekly non-fixed-term lease, you must give your landlord at least 28 days’ notice and the termination date must be the last day of a rental week.  

Five Reasons to End Your Tenancy Early

1. You and Your Landlord Agree to End the Lease Early 
If you and your landlord agree to end the tenancy early, you are free to move out before your original fixed-term end date. It is important to make sure the agreement contains specific information like the date your tenancy will end and any other provisions that are agreed to. Although oral agreements can be made, it is always best to have a written and signed agreement between you and your landlord.

You do not have to use the LTB’s prescribed form, but they offer Form 11: “Agreement to Terminate a Tenancy” which encompasses all important information needed to make sure your agreement is valid. Keep in mind, a landlord can never force you to agree to end a tenancy early! It’s also important to note that you must move out on the agreed upon early termination date. You would only be allowed to stay if your landlord agreed to this. If you choose not to move out by the termination date, your landlord can apply to the LTB for an order to evict you.

2. Assigning Your Tenancy
Another way to end your tenancy early is to have your lease assigned. Although commonly used interchangeably, an assignment is not the same as a sublet. Subletting a unit means that an individual lives in your unit for a specific period of time but, they would move out before your tenancy ended. The original agreement between you and the landlord remains in effect with the subtenant paying you the rent to then pay your landlord with. Assigning your lease means having a new person move into your unit and take over the agreement completely. This person is referred to as the assignee. They essentially take your place and are entitled to the same rights you were entitled to and also become bound by the same obligations you were during the tenancy. The assignee would be responsible for paying rent, hydro, parking, and any other financial obligations that come with your unit. You must get your landlord’s approval to assign your lease so it is always best to get it in writing.

Although your landlord can refuse your request, they can only do so for reasons that are reasonable and valid. If your landlord flat out refuses your request without reason or does not respond to you within seven days of your request, you can end your tenancy and serve your landlord with a Form N9 (Notice to Terminate the Tenancy). If you are serving your landlord with notice, you will need to give them notice no more than 30 days after you made your request to assign the lease and you must provide at least 30 days’ notice. If you have a daily or weekly tenancy agreement, you will need to provide your landlord with at least 28 days’ notice.

If your landlord does allow you to assign your lease, you can try and find a suitable assignee. If you choose not to or cannot find someone, your landlord can also charge you reasonable costs related to them solidifying an assignment like conducting a credit check on a potential assignee. There are some individuals are not legally entitled to assign their tenancy due to other circumstances. Your request to assign your lease will not be accepted if you live in: subsidized, public, or non-profit housing, housing that is provided by an educational institution where the tenant is an employee or student, or a superintendent’s unit.

For sample assignment lease agreements, contact Oduraa Legal Services today or visit LawDepot, where a customized lease assignment agreement will be drafted and tailored to your needs!

3. Have the LTB Issue an Order to End Your Tenancy Early
If you feel as though your landlord has not met their legal obligations under the Residential Tenancies Act (“RTA”), you can apply to the LTB to have them end your tenancy early. Some reasons why you may apply to the LTB for early tenancy termination include if your landlord: unlawfully enters your unit, harasses you, withholds consent for you to assign or sublet your unit unreasonably, does not maintain your unit, changes the locking system to your unit without giving you replacement keys, interferes with the reasonable enjoyment of your unit, or purposely interferes with a vital service you are entitled to.

Once you file your application with the LTB, they will schedule a hearing and allow both you and your landlord the opportunity to attend. During the hearing, you will be able to explain your grievance and provide evidence if you have any. If you are not comfortable representing yourself at the LTB, seek legal advice from a paralegal and/or have them represent you at the hearing. The LTB will consider both sides and then decide. 

4. You are the Victim of Sexual or Domestic Violence
You are entitled to end your tenancy with 28 days’ notice if you or a child you are living with has been a victim of sexual or domestic violence, and you believe either of you may be harmed if you continue to live in your unit. Notice of this sort can be given at any time during your tenancy. If there are other tenants attached to your tenancy, but you do not inform them of the violence or they choose not to sign the notice, the tenancy agreement will continue for them. To provide proper notice, you must provide your landlord with a Form N15 (Tenant’s Notice to End my Tenancy Because of Fear of Sexual or Domestic Violence and Abuse) and a Tenant’s Statement About Sexual or Domestic Violence and Abuse. Alternatively, you can also provide a copy of a court order (like a peace bond or restraining order).

Although the landlord may be required to share this information with other individuals like the police, they cannot share it with other tenants in the unit. If you are the victim of domestic violence, you are encouraged to contact the police to receive immediate assistance. If you experience sexual violence, there are resources aside from the police that can be contacted for help. SACHA (Sexual Assault Centre Hamilton and Area) is a feminist, non-profit organization that provides support to people who have experienced sexual violence at any point in time. They have a 24-hour support line and can be reached 905-525-4162.

5. The Standard Lease Form Was Not Used by Your Landlord
For almost all tenancy agreements entered into on or after April 30, 2018, a landlord must use the prescribed standard lease form. If your agreement is not on the standard lease form, you are entitled to demand that your landlord give you a signed copy on the correct form. This demand should always be done in writing! If your landlord does not provide you with a copy on the standard lease form within 21 days of your initial request, you can serve them with notice to end your tenancy. This is allowable whether you are in a fixed-term tenancy or not.

If, after the fact, your landlord provides the standard lease on the proper form, you can still choose whether you would like to end the tenancy or not. If you choose to end it, you must provide your landlord with notice within 30 days of receiving the standard lease from your landlord. In both scenarios, you must give a written notice to terminate your tenancy at least 60 days before the last day of a rental period.

There are many things to consider before choosing to sign a lease and rent a unit. However, there are certain things you will not discover until you are actually in the unit and living there. Some of these discoveries will cause you to have to end your tenancy early.

The five reasons to end your tenancy, as recognized by the LTB, are: (1) Agreeing with your landlord to end the tenancy early, (2) Assigning your tenancy, (3) Having the LTB issue an order for your tenancy to end early, (4) Being the victim of sexual or domestic violence, and (5) The standard lease form not being used by your landlord.

If you have questions regarding breaking your lease early and what your options are, contact us today!

Information referenced from: https://tribunalsontario.ca/ltb/brochures-videos/