Can I charge my tenant a penalty for moving out before the end of the lease period?

Under the Residential Tenancies Act there is no provision which allows a landlord to charge a fixed penalty when a tenant terminates a tenancy before the end of the rental term. A landlord’s recourse when a tenant moves out before the end of the lease term is to mitigate their loss by finding new tenants as soon as possible and file a claim for any losses the landlord incurred as a result of the tenant’s breach of contract. As of September 1, 2021, landlords can file an application to collect rent arrears and/or compensation that you believe the former tenant owes you with the LTB within one year from the date the tenant moved out of the rental unit. The tenant must have moved out of the rental unit on or after September 1, 2021.  However, in order to file this application with the LTB, you will have to find out their new residential address to be able to serve them. 

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