Renter Moving Out / Breaking Lease...Options/Next Steps?

[flamesrule_kipper34]

Hi all,

I have a renter who renewed for another full year lease (back in April) from August 2020 - July 2021. Due to personal circumstances they informed me in mid-August that they needed to move out of province back home ASAP.

We spoke briefly on the phone and basically asked me to re-list it and they would support viewings as needed, but we didn't discuss any terms for them to break the lease or to release them from any obligations financially for the lease should we not be able to find a renter.

After a few viewings, we couldn't secure anyone for September after those and are still looking.

I just received an e-mail from my renter who has now stated, they are moving out of province this week. They'll leave my keys wherever I'd like before they leave and I can keep the security deposit (1 month's rent) as compensation for my trouble.

Given how they are about to leave out of province, I'd like to understand what options do I have? I'm more than happy to continue looking for a renter which is my responsibility anyways, but worst case am not able to secure anyone or I go a few months without finding someone (which is certainly possible in this COVID climate and our price point).

Thought I'd ask CP if there's anything else I should be aware of and what to do in this sort of situation.

Please advise, thanks!

[Ahuch]

Originally Posted by flamesrule_kipper34

Hi all,

I have a renter who renewed for another full year lease (back in April) from August 2020 - July 2021. Due to personal circumstances they informed me in mid-August that they needed to move out of province back home ASAP.

We spoke briefly on the phone and basically asked me to re-list it and they would support viewings as needed, but we didn't discuss any terms for them to break the lease or to release them from any obligations financially for the lease should we not be able to find a renter.

After a few viewings, we couldn't secure anyone for September after those and are still looking.

I just received an e-mail from my renter who has now stated, they are moving out of province this week. They'll leave my keys wherever I'd like before they leave and I can keep the security deposit (1 month's rent) as compensation for my trouble.

Given how they are about to leave out of province, I'd like to understand what options do I have? I'm more than happy to continue looking for a renter which is my responsibility anyways, but worst case am not able to secure anyone or I go a few months without finding someone (which is certainly possible in this COVID climate and our price point).

Thought I'd ask CP if there's anything else I should be aware of and what to do in this sort of situation.

Please advise, thanks!

You are responsible to try to mitigate any losses, and they are responsible for any losses you incur.

If you can't rent it out for the same price, or can't find a new tenant (but can prove you have tried) they would be responsible.

Of course you'll likely have to spend some money collecting this so it could be a wash...

[Firebot]

Your tenant is basically on the hook for the full lease until they sublease it, or until you can secure a tenant or you agree to an early termination.

They are responsible for the lease they signed.

You can choose their offer, or be strong on the lease agreement. Alberta is pretty good in terms of laws for landlords.

https://www.alberta.ca/ending-rental-agreement.aspx

[flamesrule_kipper34]

Originally Posted by Ahuch

You are responsible to try to mitigate any losses, and they are responsible for any losses you incur.

If you can't rent it out for the same price, or can't find a new tenant (but can prove you have tried) they would be responsible.

Of course you'll likely have to spend some money collecting this so it could be a wash...

Thanks, I think that's the question.

How would I go about collecting and/or potentially taking them to court?

My biggest concern is that they are now leaving the province and losing ability to track them down at that stage.

[flamesrule_kipper34]

Originally Posted by Firebot

Your tenant is basically on the hook for the full lease until they sublease it, or until you can secure a tenant or you agree to an early termination.

They are responsible for the lease they signed.

You can choose their offer, or be strong on the lease agreement. Alberta is pretty good in terms of laws for landlords.

https://www.alberta.ca/ending-rental-agreement.aspx

Thanks. At this stage, I don't really have an offer. They told me to keep the security deposit as compensation/to give myself another month to find another renter.

My real concern is I don't really know if I'll be able to find another renter in the month of September with COVID happening and/or if I should reduce my rent to drum up interest but then being able to successfully pass that off to my ex-tenant.

[Firebot]

Originally Posted by flamesrule_kipper34

Thanks, I think that's the question.

How would I go about collecting and/or potentially taking them to court?

My biggest concern is that they are now leaving the province and losing ability to track them down at that stage.

Yep.

Legally you can sue the tenant.

Legally you are in the right.

Legally you are owed damaged until the place is leased.

In reality it's very difficult to serve and / or collect as you need to be able to track the person in order to do so. If the person does not want to be found or provide you with information, you will have lots of difficulties. It will also take 1-2 years.

This is why you either manage it right now, see if they accept a medium offer of 2 months (most people don't know how difficult it is to collect) or concede just accepting what they offered.

[Firebot]

Also, the security deposit is not enough, that covers the last month, but what about cleaning, damages, etc? You don't know the condition of the place. Tell them what their obligations are, and that they are legally on the hook for the whole lease, but you will accept termination of the lease under these conditions (example 3 months lease).

Do everything in writing, never by phone.

If they refuse, than you won't accept their offer and the lease is nor terminated, you keep the deposit, and can proceed to chase them for rent. This last option is still better than accepting them just leaving and forfeiting the deposit (which they are already doing anyways).

[calgarygeologist]

Originally Posted by flamesrule_kipper34

Thanks, I think that's the question.

How would I go about collecting and/or potentially taking them to court?

My biggest concern is that they are now leaving the province and losing ability to track them down at that stage.

As a landlord I wouldn't even really bother pursuing the matter very much. The tenant is responsible for the lease and you have your rights but I figure that any sort of Landlord-Tenant Board meetings or court proceedings would be more hassle than benefit. Do your best to rent it again and get that cash flow going again. You can file a claim against the tenant through the Residential Tenancy Dispute Resolution Board within two years I believe. So you can take some time and file at a later date but it might be tough to find the tenant.

[Fighting Banana Slug]

I would also make sure that there is no damage to the place. A month rent is ok to buy some time to find a new renter, but if you need that deposit to also fix things, you are really in the hole.

For the record, I have let renters out of their lease early, so long as I have at least a month's rent and the place is spotless.

[photon]

I once had a tenant move out on a fixed term lease AND they took the fridge.

They'd moved out of province as well and the lawyer I'd asked at the time (they used to be called Landlord 9/11 so tried to help from the landlord's point of view) said it'd cost more than a few thousand dollars to get a judgment out of province, and there'd still be the challenge of collecting.

So yeah while they're responsible for the lease up until you can re-rent it, enforcing that probably won't be worth it.

[troutman]

Originally Posted by Firebot

Alberta is pretty good in terms of laws for landlords.

My landlord friend would disagree - she has had a hell of a time trying to evict an awful tenant. He is often late or behind in the rent, and has caused substantial damage to the property. He keeps getting the matter adjourned.

[Cecil Terwilliger]

Is it downtown? I’m looking.

[D as in David]

Originally Posted by Cecil Terwilliger

Is it downtown? I’m looking.

Yes, details please. I'm looking for something in Oct or Nov.

[flamesrule_kipper34]

Hey guys,

It's Crescent Heights, here's the listing: https://www.rentfaster.ca/300193

Let me know if anyone is interested of course, feel free to PM or message me thru the site for queries.

Thanks in advance.

[HockeyIlliterate]

Originally Posted by flamesrule_kipper34

Hey guys,

It's Crescent Heights, here's the listing: https://www.rentfaster.ca/300193

Let me know if anyone is interested of course, feel free to PM or message me thru the site for queries.

Thanks in advance.

Huge place. Looks nice.

With room for 2 king size beds in the master and two showerheads in the bath, I wonder if some film studios might be interested in renting the place?

[Weitz]

Originally Posted by troutman

My landlord friend would disagree - she has had a hell of a time trying to evict an awful tenant. He is often late or behind in the rent, and has caused substantial damage to the property. He keeps getting the matter adjourned.

I would also disagree. It may be better than some other places but it’s still way better for tenants.

Do your best to rent it out and move on is my advice. Any money spent trying to collect will likely just be wasted.

[photon]

Yeah I interpreted Firebot's comment to be relatively speaking.. better than BC or Ontario but still slanted towards tenants.

Nice place!!

[Jason14h]

Contact Judge Judy

[OMG!WTF!]

Or...if you can find them...maybe you could hire... the A Team. -- Sorry. -- If you don't have any luck finding a tenant soon maybe consider a property management company. They like the higher end properties and usually have tenants for them. They'd be looking at more than 2500 for that sort of place. There is a 4 unit new build near me on 6th ave that's getting 3400 for each.

[DeluxeMoustache]

Looks like a nice place and good location

If you can rent it, for practical purposes, you should incur very little in the way of damages. Compromising with the leaving tenant on 2 months may be a reasonable compromise

Lawsuits I would think are generally supposed to cover actual demonstrable damages, not spite or inconvenience

If you can rent it, and quickly, do so and move on