How Can Landlords Break a Lease in Ontario?
In the previous article, we explored ways in which a tenant may break their lease early in Ontario. Is this process as difficult for landlords as it is tenants? While the Ontario Residential Tenancies act provides few ways in which a tenant can end their tenancy early, once a fixed term lease has ended or is ending in 60 days, tenants may end their tenancy with 60 days notice for any reason. Landlords, on the other hand, must have a substantial reason for ending a tenancy—early or not—and this process accompanies numerous legal provisions.
Ending a Tenancy as a Landlord
Beside arriving to a mutual agreement with the tenant (N11 Form), there are certainly options if a landlord needs to evict a tenant. However, as previously mentioned, there must be a substantial reason for the eviction. Landlords cannot end a tenancy for minor reasons or in pursuit of higher rental rates. Further, an eviction can be a lengthy and cumbersome process. All notices must contain correct information and be fully filled, otherwise they may be void. Additionally, if a landlord is found to be dishonest about the reason for an eviction, they may be charged a fine for bad faith eviction. After an eviction notice is served, a court hearing with the Ontario Landlord & Tenant Board may further be necessary to enforce the eviction if the tenant does not agree with the notice.
Breaking a Lease Before the End of the Term
At any time in a lease term, if the tenant is not fulfilling their rental obligations, such as:
Not paying rent (N4 Form)
Overcrowding the rental property (N5)
Damaging the property (N5/N7 Form)
Harassing you or other tenants (N5/N7 Form)
Engaging in illegal activity (N6 Form)
A landlord may decide to serve one the corresponding forms to the tenant with a termination date to either solve the issue by or move out by. Depending on the form used, the termination date ranges from 10-20 days after the tenant has been given the notice.
A tenant may agree with this notice and move out by the termination date, or if the behaviour causing the notice has been remedied, the notice may become void. Conversely, if they have not agreed to move out or cease the actions or behaviours specified in the notice, landlords may need to apply to the Ontario Landlord & Tenant Board (LTB) for a hearing and formal eviction order.
Ending a Tenancy at the End of the Term
Likewise, landlords will have a few options to terminate a lease at the end of a term, specifically. A landlord may serve an N8 (Notice to End Your Tenancy at the End of the Term) form, with at least 60 days notice, for the following reasons:
The tenant has consistently paid rent late
The tenant is no longer qualified to reside in subsidized or public housing
The rental property was offered as a requirement or benefit of the tenant's employment, and their employment has ceased
The tenancy was agreed upon as a result of the purchase of a condominium unit, but the Agreement of Purchase and Sale was terminated
The tenant is renting the property for the sole reason of receiving therapeutic or rehabilitative care, and the lease term has ended
No Fault Evictions
As the name suggests, no fault evictions occur when a tenant has done no wrong, but is still notified or ordered to move out. There are two primary instances of this:
The landlord or a member of their immediate family wants to occupy the unit for personal use (N12 Form)
Here, the landlord or their family member must occupy the unit for a minimum of 12 months. Landlords must also provide a minimum of 60 days notice. If renting month to month, the termination date will fall 60 days from the last day of the rental period, or if a fixed term lease, at the end of the lease term. If the tenant has failed to move out by the termination date, the landlord may need to apply to the LTB for a formal eviction. However, it is recommended that landlords file this application with the LTB as soon as an N12 is served. This assures that any delays in scheduling a court date are primarily bore prior to the termination date. Lastly, landlords must be prepared to pay the tenant an amount equal to one month's rent or offer the tenant another acceptable rental property before the termination date. Otherwise, landlords risk having their application rejected by the LTB.
The landlord plans to demolish, renovate, or repair the property or convert the property into non-residential use
For this reason, a landlord will need to provide 120 days notice and amount equal to one, three, or one year's rent, depending on the circumstances, and usually, another acceptable rental property for the tenant too before the termination date. In some circumstances, a tenant can give notice to move back into the rental property after the work has completed.
Conclusion
The legality of how and why a landlord can end a tenancy accompanies a myriad of rules and specifications. That's why it's always advisable to reference the Residential Tenancies Act, LTB, and a legal professional if necessary. Furthermore, a reliable property manager can help guide landlords through this tedious process by offering advice and keeping the landlord informed and updated throughout any eviction process.