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How to respond to a subtle hint my tenant may break their fixed tenancy lease before end of the term

gobdob

0
REIN Member
Joined
Dec 12, 2013
Messages
3
Hello REIN members,



I wanted to know how I could respond to an email from my tenant. In their email, they hinted that they are actively looking to buy a house but haven't found anything yet. They have about 7 months left in their lease. I understand that the Tenancy Act in Alberta ensures the tenants must fulfill the lease agreement, however I also understand it is also the landlords' responsibility to reasonably find a tenant as soon as I have been officially given notice of their leave. Since I haven't been officially given notice with a firm date, I am assuming the tenant is still staying.



In the in term, do you have any suggestions on how I could respond to their email by reiterating to them that they signed a year lease? I am in good terms with the tenants and want to gently remind them their obligations for signing a one year lease with me. In the end, I am hoping they stay the full term. I am just not sure if I should "acknowledge" their hint of finding a place to buy. I am just needing help in wording of the email.



If they do decide to give me notice, I will immediately work with the existing tenants to find new renters. But can you correct me: it is still the current tenants' legal responsibility to fulfill the lease agreement if I cannot find renters during the length of the lease (ie. they are on the hook to continue to pay the rent until the end of the lease)? Basically I want to ensure I can cite the Alberta's Tenancy Act if they decide to exercise this option of breaking their lease. The lease they signed did not explicitly include a penalty clause for breaking the lease. In the future, do you know if I should put in a penalty for breaking the lease?



Thanks,



Franco
 
http://www.servicealberta.gov.ab.ca/landlords_tenants.cfm



This link will have all the answers to your questions.



At this time I would not communicate by email. Send a formal written letter outlining his rights and yours as found in the act and offer to assist him to work out a solution. Ask him to clearly communicate his intentions.

I would give him a not so subtle hint that he is responsible for the rent to the end of the lease if a mutually agreeable solution can not be found but I would think another tenant should be available. Suggest to your tenant that he keep in mind his lease agreement when setting a closing date on any home he intends to purchase.
 
Hi, Franco,



That was exactly what happened to us in mid November, 2013. The tenants sent us an email saying that they were going to move out at the end of December because they bought a property and their family members were going to join them. He also said that he was going to pay for the rent for January on weekly basis until we found a new tenant. His lease term shall end in July of 2014.



I emailed him back, explaining his responsiblity of rent payment till the end of term, and his right to sublet or assign the lease to a new tenant with our approval. I then sent him the advertisement, photos and videos and assisted him to post advertisement online. He agreed to honor his obligation, and started to market and show the apartment to potential tenants. He moved out at the end of December, he also found a new tenant, whom I personally interviewed and conducted a background check. The new tenant will start the lease in March, and old tenant has kept paying rent for January and February.



I think that as long as you clearly indicate their rights and responsiblities, most tenants will understand and follow it. In our case, it took me no more than one hour to email with him and one hour to have the face interview with the new tenant.



Hope it helps.



Angela
 
The tenant is not responsible for finding a replacement tenant. If a tenant breaks the lease, his obligation is to pay rent (and other costs) until a replacement is found. It is the landlord's obligation to make every reasonable effort to find a replacement tenant as quickly as possible.



When one of our tenants breaks a lease, we inform them of these obligations and suggest that if they can be flexible with showings, it would help us to find a replacement faster. For example: they should keep the premises in showable condition, and it is helpful if they are willing to allow us to show the place on short notice with just a phone call or text to get their permission (rather than 24 hours written notice).
 
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