Subletting advice? Trying to buy a place.

[kaddy]

My lease is ending in my condo (higher end buidling, new building in connaught) and I'm at the point where I have to renew, but haven't found the place I want to buy. Mainly my fault, as I just started searching for places.

I don't want to rush into buying, but not sure the pro's and con's of subletting.

I have the option to renew my lease at 6 or 12 months, but will for sure have to sublet, as I'll find a place before then.

Any advice? If I plan to sublet is 6 month my best option? Any things I should be worried about subletting? My condo will rent no problem.

[ken0042]

If you are that sure it will rent out, why not just end your lease early when the time comes? The penalty cannot be much more than what the landlord is out; so maybe a month's rent.

Does your lease allow subletting? I know when I had to sublet (in Manitoba) in the lease it said the landlord had the right to refuse to sublet to somebody. Also keeping in mind that if your subletee bails, you might be responsible for the rent again.

[kaddy]

Originally Posted by ken0042

If you are that sure it will rent out, why not just end your lease early when the time comes? The penalty cannot be much more than what the landlord is out; so maybe a month's rent.

Does your lease allow subletting? I know when I had to sublet (in Manitoba) in the lease it said the landlord had the right to refuse to sublet to somebody. Also keeping in mind that if your subletee bails, you might be responsible for the rent again.

If I break my lease I'll lose my $1800 damage deposit, will be liable for expenses until they find another renter. Seems silly to take this route.

In Alberta you have the right to sublet. They can reject the person though, if they don't reply in 14 business days, the person is automatically accepted. I'm not too worried about finding someone, as it's a perfect location for a professional. I'd rather not take this route either, but I guess I don't have a choice.

[ken0042]

I would double check the loss of security deposit as well as the expenses. I agree it would be silly if you lost both the deposit and any rent they miss out on; but I don't see how they can take away your deposit unless they put it against any loses.

[terminator]

Its arogant to think your landlords gonna let you sublet his owned property. I know I would not allow it.

[squiggs96]

Originally Posted by terminator

Its arogant to think your landlords gonna let you sublet his owned property. I know I would not allow it.

It's not arrogant; it's the law:

The Residential Tenancies Act requires a tenant to get the written permission of a landlord to sublet. If you do make a request to sublet, a landlord can only refuse on reasonable grounds and cannot charge a fee or ask for anything for giving consent. If a landlord does not answer the request to sublet within 14 days, he is taken to have agreed to the request.

If you show up with a hobo that is unemployed, that's reasonable. If you bring in someone that has references and employment, it's unreasonable to refuse.

[squiggs96]

Originally Posted by ken0042

I would double check the loss of security deposit as well as the expenses. I agree it would be silly if you lost both the deposit and any rent they miss out on; but I don't see how they can take away your deposit unless they put it against any loses.

In Alberta you are still on the hook for the remaining rent through the end of the lease term. The landlord must try and mitigate his damages (try and rent it out to someone else if you end your tenancy early), but you can still be liable to pay the rent if he makes a good faith effort and cannot find another renter.

The renter should check the clause to see what the lease break fee is shown as. If it is liquidated damages, that is the landlord's estimate on how much it will cost him if the renter breaks the lease. It would likely be difficult and costly to fight that amount. I rented at Calgary Place Apartments for a while. I signed a second lease and then broke it. They had an agreement that if you broke it in your first six months, they'd charge you a full month's rent. If you stayed at least six months, it was only $200. They were happy to have me pay the $200, as they were able to get my money, and raise the rent for the next person.

[mustache ride]

I would let my tenant break the lease before i would allow a sublet. Maybe just use that as a starting point when you negotiate your penalty.

[squiggs96]

Originally Posted by mustache ride

I would let my tenant brake the lease before i would allow a sublet. Maybe just use that as a starting point when you negotiate your penalty.

Agreed. Most people are reasonable if you approach it like an adult. I have a couple in one of my units that has been there for 3.5 years. I haven't raised the rent on them once, as they are perfect and I don't want them to leave. If they asked to break the lease (I do one year fixed terms each time), I wouldn't even charge them the breakage fee.

If I was approached from another tenant, and it was easy to rent, I'd likely charge a nominal fee. I also wouldn't want a disgruntled tenant who could inflict $20,000 or more worth of damage, just because I wouldn't let them out of a lease or wouldn't allow a sublet. The $600 they would be losing wouldn't compare to how much it would cost me to remove cement from a toilet, broken windows, appliances, loss of rent, etc. Most landlords know this, and we want to make our tenants happy, so they respect our assets.

[Clever_Iggy]

My wife and I were recently in the same situation. We were up front with our landlord and when we bought a place, we told him that the Calgary rental market (he lives in Vancouver) is white hot and that we would show the place, pay for the renfaster.ca add and that he shouldn't have a problem finding someone. He put it on rentfaster, we showed it and it took less than 6 hours to rent. He got $400 per month more than what we were paying.

In this market, landlords have a lot of pull because of the low inventory, but in your situation, that could work in your favor as the landlord won't have any reason not to rent it quickly and for at least what you're paying.

[kaddy]

I talked to my owner through the property management company they use (hope street) and the owners said they'd give me and extra month. On the condition in August they can show it, but if I haven't found a place I'll have to sign a 6 month lease.

I'm satisified with the offer, as it's fair. I'm just still in a rush to find a suiteable house in this crazy market.