I signed a fixed term lease with my tenants, but they have recently notified me verbally that they needed to terminate the lease by the end of this month. They prepaid the full term when they signed the lease agreement. Now, they are requesting a refund for the remainder of the rental period. The problem is that the Condo Board does not allow more than 1 rental within a 12-month period, meaning I am not allowed to rent out my unit to cover the remaining term of the lease. What can I do to handle the situation?

Collecting any amount of rent greater than the rent deposit equivalent to one month’s rent is unlawful under the Residential Tenancies Act, 2006. It is also considered an offence under the Act, for which a landlord may receive a fine.

As such, landlords are not within their rights to hold onto any amount greater than the last month’s rent, and any rent that has been paid (such as for June and July). Other amounts should be returned to the tenant.

If the tenants are leaving mid-lease, the landlord can explain that the tenant can attempt to assign the tenancy to someone else with the landlord’s permission, and that person will continue paying the rent if they are approved by the landlord.

LSHC does not give assistance on Condominium Act issues, and therefore, LSHC staff is not in a position to be able to tell landlords how to deal with Condo Board rules, while still being able to rent out the property within the year. For this, landlords may need to consult a lawyer or paralegal.