Saturday 31 August 2013

Negotiating Your Lease

By Marten Ranheim


In Canada, you can rent a home on a periodic (month-to-month) or a fixed term basis. A lease is a fixed term tenancy agreement, in which a term is set for the time that you will be residing in the premises. There will be a start date and an end date, and is usually for a period of one year.

There are some advantages to either arrangement. If you need flexibility, a month-to-month arrangement might be the best for you. If you want security, and a guarantee of a home at a set price for a set period of time is important to you, an annual fixed term arrangement might be best.

Whatever the term, your landlord will likely require you to sign a tenancy agreement form. Things that are usually included on tenancy agreement forms are:

The length of the tenancy term; rental payment due dates; what's included in the rent; utility payment arrangements; smoking or pet related policies; if there is a security deposit, and how much; how often rent increases are expected; and, what the landlord's and the tenant's obligations are with regard to repairs and maintenance, the landlord's access to the unit, and ending the tenancy.

What do I need to know before I sign?

You are agreeing to stay for a while when you sign a fixed term agreement. Be sure you understand, and agree to, all the terms laid out in the agreement. There are several things you should consider before you sign on the dotted line, including:

Unit functionality: Check that the unit is right for your requirements, and double check that the unit is in good repair. Open the cabinets, turn on the faucets, open and close the windows, make sure the door locks are in good condition. Use a tape measure to be sure that you can fit your furniture inside the unit. Take the time to carefully examine your appliances and the laundry room in the building.

Existing damage: Take photos of any existing damage, such as, broken tiles or blinds, stains on the carpet, nicks in the walls. You don't want to pay for damage you didn't cause, so be sure any problems with the unit are listed on the rental agreement.

Items included: Inquire and document what is included for the cost of renting the unit. Things like parking privileges, laundry, and cable or other utilities. Surprise expenses could put a strain on your budget.

Rental unit alterations: For those who want to make the place their own, ask the landlord what kind of changes you can make. If you were to just get out your power tools and modify the unit, or even something like painting, your landlord could hold back your damage deposit to account for what they may consider to be damages.

Pet allowance: If you own a pet, be sure to ask if pets are allowed, and if so, what type. Some places allow small pets, but not large dogs for example, so ask about the pet policy. Landlords could cancel your lease if you break the policy, so be honest and don't take a pet in without telling them. You don't want to have to give up your pet so you can keep your home.

Termination clause: What if you have to move before your lease is up? Possibly you are getting married and need a bigger home, you could want to buy a home of your own, or you could get a new job that is located far away. Make sure you know what sort of penalty you'll be required to pay, and if that's something you can live with. And if you just want to move out at the end of the lease term, what sort of notice do you need to provide?

Before you sign the lease, be sure that you have gone over the agreement in detail, and fully understand it. Get the landlord's promises in writing on the rental agreement about issues like modifying the unit, or about your pets.




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