Residential Lease Agreement Information
Alternate Names:
A Residential Lease Agreement can also be referred to as a:
- Lease
- Rental Contract
- Rental Agreement
- Tenancy Agreement
- Residential Tenancy Agreement
What is a Residential Lease Agreement?
A Residential Lease Agreement is a contract between a landlord and tenant that is used to set out the terms of a residential tenancy, including the rights and responsibilities of each party. A Residential Lease can be used when renting a room, house, apartment, condo, basement suite, duplex, mobile home, or town home.
You can create and customize this rental agreement for any residential property within Canada, excluding Quebec.
If you are looking to rent a commercial property, use LawDepot's Commerical Lease AgreementCommerical Lease Agreement.
Who are the parties in a Residential Lease Agreement?
The parties in a standard Residential Lease Agreement are typically:
The landlord: A landlord is the individual who is renting out his or her residential property in exchange for rent payments.
The tenant: A tenant is the party who agrees to pay to live in the leased premises for a specific amount of time as indicated in the residential tenancy agreement.
Who should use a Residential Lease Agreement?
Anyone who is renting residential space to or from another party should use a lease to outline the rights and responsibilities of both the tenant and the landlord during the tenancy.
People who often use a Residential Lease are:
- Landlords who are renting out property to a tenant
- Property managers or real estate investors with multiple properties and tenants to manage
- An individual who is renting a room to a friend or family member
- A tenant whose landlord did not provide them with a lease
What is included in a Residential Lease Agreement?
A Residential Lease Agreement should include:
- Landlord, tenant, and property information: contact information for both parties, as well as a description of the rental property
- Lease length: how long the tenancy will be, including whether it will automatically renew (continue until either party gives notice) or if it is a fixed term (will expire on a predetermined date), and notice details
- Rent details: how much the rent price will be per month, if utilities are included (or need to be paid separately), how often the rent needs to be paid (weekly, biweekly, monthly, or annually) and if there are any additional monthly fees, such as late payment fees, pet fees, etc.
- Damage deposit details: including how much the damage deposit is (typically the amount of one months' rent) and information about how it will be refunded if the tenant leaves at the end of the lease
- Permissions: whether the landlord will permit certain things, such as smoking, pets, home businesses, or improvements to the rental property
- Rules and responsibilities: the responsibilities for the tenant and landlord, such as care and maintenance of the property, and overall expectations from both parties during the course of the lease period
- Other details: other lease details like an option to purchase (rent-to-own), guest rules, governing law, assignment and subletting terms, safety requirements, insurance, environmental disclosures, whether parking is included, and more
Why should I use a Residential Lease Agreement?
A lease agreement is beneficial for many reasons. It clarifies the obligations of both parties during a residential tenancy so each person knows what is expected of them during the rental relationship. For example, the tenant may be responsible for paying rent on the first of every month, while the landlord is expected to keep the property in good condition (by taking care of major repairs, such as leaks or plumbing issues, for example).
A lease also protects both parties from future misunderstandings, such as who pays for damage to the rental property. The written lease proves both parties agreed to and acknowledged the terms within it.
How do I break a Residential Lease?
Generally, the first step in attempting to break a lease would be to discuss the situation with the landlord or tenant (depending on which party wants to break the lease). If both parties consent to ending the lease early, then it can be terminated.
If either the landlord or the tenant wishes to break the lease due to a substantial breach of the terms in the agreement, then they can contact their province's residential tenancy services (e.g. Landlord and Tenant Board, part of the Social Justice Division of Tribunals Ontario) for more information on next steps.