Your tenant wants to break the current lease, but is not sure how to go about it? It is important here to understand that a tenant cannot just leave the apartment and break the lease at any time and for any reason.
If, however, you come to an agreement with this tenant, be sure to do it properly. You will find everything there is to know about it in this article.
What is the best option for the tenant between the assignment of a lease or the sublet?
Assignment of lease is useful when the tenant has to move to a new, recently purchased home, for example, or when the tenant has to move to another city for a new job. The assignment of the lease releases the tenant from his obligations under the lease and waives his right to return to the accommodation.
While subletting is a better option when the tenant, for example, is traveling for a few months or for short-term studies. The tenant can then request a sublet from his landlord to avoid paying for the accommodation during his absence. The tenant then remains responsible for the accommodation and retains his right to return to the accommodation upon his return.
What to do when a tenant asks you to transfer a lease?
A tenant, the assignor, can take the steps on his side to find a replacement tenant, who will be called the assignee. He will then have to enter into a written agreement between himself and the transferee which will be conditional on the agreement of the lessor, who has the last word on the final decision.
The assignor must provide the landlord, in writing, with basic information about the assignee, such as name and civic address. Other information may be shared with the consent of the assignee. It is important to include the date of the assignment / sublet.
As a result, the landlord will legally have a maximum of 15 days to respond to the notice, following receipt thereof. If the landlord does not respond, they are deemed to have accepted the agreement.
If the landlord refuses, he must provide serious reasons for his decision.
If the landlord accepts, he is within his rights to request the costs related to the arrival of the assignee, such as, for example, the costs of credit investigation.
It is important to know that there are only 4 very specific situations where a tenant can break his lease at any time:
If a tenant becomes in charge of low-rental housing;
If the safety of a tenant, or dependent child, is compromised due to violence, physical or sexual, on the part of the living spouse or of a former spouse;
For all seniors who are admitted to a private seniors' residence, a CHSLD or any other place that meets the necessary health needs;
If a tenant can no longer stay on the premises due to a disability.
Among these situations, certain exceptions may apply. Assignment or subletting is not permitted only if:
The tenant is a student who resides in an educational institution;
The tenant is a resident of low-rental housing
The inhabited dwelling serves as a family residence and that the landlord has been notified.
How to enter into an assignment of lease / sublet agreement?
For a lease assignment, the tenant must first make an agreement with the assignee by completing the PDF entitled "lease assignment contract" that you can find in your Bloc Solutions platform directly. The tenant must provide you with this agreement and the assignee's information. Keep in mind that you have the last word, with valid reasons, you can refuse the lease transfer request.
For subletting, all you have to do is re-sign a new lease in the name of the assignee. On the other hand, it is important to know that the rental conditions of the transferee must not exceed the conditions of the transferor. For example, if the accommodation is smoke-free or animals are not accepted, it should be the same conditions on the lease of the transferee. On the other hand, conversely, if the transferor's lease accepts animals, it is possible to refuse the animals under the new conditions of the transferee's lease.
If you have more complex questions, please do not hesitate to contact a member of our team. You can contact us via chat at the bottom right or by phone at 581-709-9597.