We hope everyone is starting to enjoy the warmer weather! Its officially BBQ season, and we have our decks ready to be enjoyed. For those with busy backyards, and maybe many kids’ things all around, it sometimes can be a bit of a pain mowing around all this, and also pulling weeds that seem to grow daily! I (Martin) put in artificial grass in my back yard last year, and although a little pricey, I can’t tell you how happy I am with it. It feels like a rug on the kids’ feet, always looks great, and I’m not weeding/mowing constantly. Given it has a life of over 25 years, the cost is quite small spread out over that time. It may not be for everyone, but we found it made sense for our backyard, and 3 little girls that always want to go out there to play on the swings.
For our latest post, we are going to talk about Ontario’s new Standard Lease. For those that are landlords already, the new lease took effect on any new lease signed on or after April 30th, 2018.
As we take a step back to evaluate what really has changed for us landlords, in reality there is only a new form. There has been no changes to the Residential Tenancies Act or changes in what is and is not allowed for rentals (except that this lease needs to be used). So regardless of what is put on the lease there are sections you can customize), any rulings or law is not governed by what is in the lease but what is actually in the Act. So as we ground ourselves in this new lease, which may seem like a large deal or a headache, not that much has changed or impacted how we can continue investing in real estate.
As we go a little deeper into what the new lease actually means for us in administration of our properties, below are some of the main points and things to keep in mind and some things that the lease does not take into account:
- Put Into effect on any new lease signed on or after April 30th, 2018
- Does not apply to most social and supportive housing, co-op housing, retirement and nursing homes, mobile home parks, commercial properties and accommodation exempt from the Residential Tenancies Act.
- A landlord must provide electricity usage details for the previous 12 months, but privacy legislation prevents the landlord from obtaining that information if the previous tenant paid for their own electricity. This is not really clear in the Lease
- A landlord must give keys to the tenant if the locks are changed but lease doesn’t say that a tenant must reciprocate. The proper explanation should be that a landlord doesn’t require the consent of the tenant to change the lock provided they give the tenant a replacement key, and tenants can’t change their rental unit locks without the consent of the landlord.
- A tenancy agreement can’t prohibit pets. The RTA contains a single sentence about pets: “A provision in a tenancy agreement prohibiting the presence of animals in or about the residential complex is void.” That doesn’t mean a landlord can’t deny a tenancy applicant because they own a pet or advertise a no-pets policy, excluding service animals. Note that some Condo corporations are allowed to ban pets in certain condos.
- There are still sections throughout the lease to add your own guidelines and rules for renting (however all must be legal)
- If the standard lease is not used, renters can ask for one. If landlord does not provide within 21 days, renter could withhold 1 months rent.
- (Some points above taken from Real Estate Magazine, remonline.com)
In the end, we think it is a good step to standardize leases, however the government still has quite a ways to go. This is the first draft and there are sure to be many changes. Chris Seepe, the president of the Landlords association of Durham has a long list of suggested additional terms and conditions that are not covered above (Click here to view). It is worth a read, and perhaps there are things you may want to include specific to your properties.
In the new lease, there are things missing and clauses that could be more clear, as always we suggest you talk to a lawyer if anything is unclear and/or to protect yourself further. Another option is if you are using a professional property manager, then they should also be able to guide you, or do the work for you. Good Investing!
Visit us at www.VenturePropertyInvestments.com and our pages on facebook or LinkedIn to learn more about how we invest in real estate to profit in both an increasing or decreasing housing market. Or contact us if you would like to learn how we are providing double digit returns for our partner’s and clients year over year.
Until Next Time,
Build Wealth. Live Life
If you haven’t come out to one of our events, feel free to visit our events page on our site at https://venturepropertyinvestments.com/events/. If you are just starting out, or a seasoned pro, come out to Learn and Network with others like you.
Martin Kuev & Chris Shebib are full time Real Estate Investors, Realtors and Wealth Coaches who have over 20 years experience in Real Estate. With multi-million-dollar real estate portfolios and a team built over the past decade, they left the corporate world to have the flexibility to spend time with family, continue their own real estate investments and help others build long-term wealth.
Both Chris & Martin are first and foremost Husbands, and Fathers. Both are actively involved with their families and each have 3 daughters keeping home life full of surprises.