As we enter the year 2021, landlords and tenants in Ontario are still navigating the challenges presented by the COVID-19 pandemic. This includes the necessity of having a clear and comprehensive tenancy agreement in place.
A tenancy agreement is a legally binding contract that outlines the rights and responsibilities of both the landlord and the tenant. It is crucial for both parties to have a thorough understanding of the agreement before signing it, as it can impact the entire tenancy period.
Here are some key points to consider when drafting or reviewing a tenancy agreement in Ontario:
1. Rent payment terms: The agreement should clearly state the rent amount, due date, and acceptable modes of payment. Landlords should also consider including late payment fees and procedures for rent increases.
2. Security deposit: The maximum amount of a security deposit that a landlord can collect is equal to one month`s rent. The agreement should outline the conditions under which the deposit can be withheld and the timeline for returning it.
3. Obligations of the tenant: The agreement should specify the tenant`s responsibilities regarding maintenance, cleanliness, and damages to the property. It should also include restrictions on subletting and modifications to the rental unit.
4. Obligations of the landlord: The landlord should provide a safe and habitable rental unit and promptly address any necessary repairs or maintenance. The agreement should also include the landlord`s obligations regarding utilities and services.
5. Termination and eviction: The agreement should outline the procedures for terminating the tenancy, including notice periods and grounds for termination. It should also provide guidelines for eviction procedures in case of non-payment or violation of the agreement.
6. Pets: The agreement should explicitly state the landlord`s policies on allowing pets in the rental unit and any additional fees or restrictions.
7. Utilities: The agreement should include details regarding which utilities are included in the rent and which are the tenant`s responsibility to pay.
8. Smoking: If the landlord prohibits smoking in the rental unit, the agreement should clearly state this policy and the consequences for violating it.
9. Insurance: The agreement should specify the tenant`s responsibility to obtain renters` insurance, which can protect their belongings and provide liability coverage.
10. Communication: The agreement should include contact information for both the landlord and the tenant, as well as procedures for notifying each other of important information or issues.
In conclusion, a well-crafted tenancy agreement can help prevent misunderstandings and protect the rights of both landlords and tenants. It is important to carefully review and understand the agreement before signing it to ensure a successful tenancy experience.
