Section: Word of the editor
Many landlords feel that they have an advantage in handing over the keys to the dwelling and verbally agreeing on the amount of the rent without giving a written lease to the tenant.
Regularly the owners tell me that they proceeded in this way because they did not trust the tenant. By doing so, the owner mistakenly believes that he is protected. Many landlords believe that by not giving a lease they can simply decide to end the tenancy by telling tenants that they must leave the dwelling.
In a decision rendered on May 28, 2021, the Administrative Housing Tribunal ordered the landlord to reimburse the tenants’ insurance company the sum of $975.03.
In this case, the tenants suffered losses to some of their household items as a result of water damage that occurred through infiltration from the roof.
The insurance company claimed from the landlord, by being subrogated to the rights of the tenants, the sum of $1867.20 that had been paid to the tenants to compensate them for the loss of two mattresses. This amount was reduced at the hearing by diminishing the value claimed to $933.60, considering that the age of the mattresses represented a depreciation factor of 50%.
In a recent case heard by the Tribunal Administratif du logement (1) the TAL had to rule on the existence of a lease for the dwelling and on the issue of damages claimed by the tenant and the reimbursement of one month's rent deposit, which had been paid in the amount of $580, at the time the lease was signed.
In this case, the tenant argued that a lease existed, even though the landlord had not given him a copy.
Many landlords who have rented commercial premises have shown a lot of patience in recent months due to the pandemic.
Several landlords have agreed to participate voluntarily in the various government programs and have agreed to give up a portion of their tenants’ rent for a certain period of time in order to receive a government subsidy.
Landlords have tight deadlines. Many who have just purchased their buildings realize how important financial planning and regular cash inflows through the tenants’ rent deposits are. In a market that has become agitated, favouring upward transactions and often with reduced room for manoeuvre, the main expenses of the building are often immutable or almost static.
Taxes, insurance, energy costs, etc... leave little hope of reduction of these costs for rental property owners looking to improve the financial performance of their building. Income must therefore be as stable as possible, landlords must thus ensure that they make a good selection of tenants, which is of prime importance to avoid situations of non-payment of rent and conflicts as much as possible.