QUOTE (Rascal @ Nov 15 2007, 11:48 AM) What are people`s thoughts on leases (in Alberta)? I have heard two different arguments. Some say that leases are more in favor of the tenant and some say the same for the landlord. Some recommend renting month-to-month. Any feedback from those more experienced would be helpful.
My experience is that when you sign a one year lease it can be enforced on you but if the tenant runs out prematurely you`ll have a hard time enforcing it on the tenant. i.e. it works against you. Even worse, I owned a rental property when every renter in town wanted to buy rather than rent (that was in Calgary some 3 or 4 years ago). My rental agent was a dud who seemed to qualify renters who continuously walked out on him. At his last try, he offered, with my consent, a rental lease incentive. Upon signing a one year lease, the renter would get the first month rent free. Guess what, he rented the place with a one year lease. Two month later the renter walked out. If you ever consider offering a rent incentive for signing a lease, don`t offer the incentive upfront rather offer it at the lease end. Such as the 12th month of the lease is free.
That is my pound of flesh on this issue.
My experience is that when you sign a one year lease it can be enforced on you but if the tenant runs out prematurely you`ll have a hard time enforcing it on the tenant. i.e. it works against you. Even worse, I owned a rental property when every renter in town wanted to buy rather than rent (that was in Calgary some 3 or 4 years ago). My rental agent was a dud who seemed to qualify renters who continuously walked out on him. At his last try, he offered, with my consent, a rental lease incentive. Upon signing a one year lease, the renter would get the first month rent free. Guess what, he rented the place with a one year lease. Two month later the renter walked out. If you ever consider offering a rent incentive for signing a lease, don`t offer the incentive upfront rather offer it at the lease end. Such as the 12th month of the lease is free.
That is my pound of flesh on this issue.
We try to create long term tenancies and find that Leases help us to do that. It makes for a level of commitment between the parties. We generally go with 6 months to start and then renew good Tenants for a year, or even more (with rent excallators built in) once we are satisfied that they will be good, equity building Tenants.
Nothing will obligate someone who is untrustworthy, but leases works for most. One of the other reasons we go with leases is that if you have a month-to-month Tenant with whom you are not overly happy you cannot ask them to leave unless they make a major breach of the Tenancy. With a lease you can simply choose not to renew (in Alberta).
Nothing will obligate someone who is untrustworthy, but leases works for most. One of the other reasons we go with leases is that if you have a month-to-month Tenant with whom you are not overly happy you cannot ask them to leave unless they make a major breach of the Tenancy. With a lease you can simply choose not to renew (in Alberta).