There are tons of financial aspects you need to consider when you have to get out of a lease agreement. To properly terminate your lease, there are some things that you have to maintain. If you’re trying to terminate the lease prematurely, then there’s a chance of a penalty. And again, to permanently terminate the contract, you have to go through some legal process. You might have to involve a legal professional or even hire an attorney.
A rental agreement binds you to a contract with your landlord. And both of you are legal parties here. If you have a contract holding more than a year of lease, then you might have to go with the lease, find an alternative, or even pay a penalty. But all those will depend on how you live and, on the landlord, of course.
Most rental agreements come with all the proper clauses. A lease can be extended for a year or two. Mostly, you, as a renter, will pay an amount to live on the property. There are some leases where you pay month-to-month cash, and the contract is also renewed every month. This same situation is perfect when you travel a lot. This will also save you some penalty fees. But with a long-term lease, the pay is relatively low. And thus, most people will opt for long-term rental agreements.
Step 1: Hire help
To terminate the lease properly, you can first ask an estate lawyer in Montreal. If you’re leaving the property for some reason related to the community or landlord, or even when you’re the victim, then an attorney would be most helpful. They will help you find a solution to break the lease. And again, they’ll help you get off the penalty fees. If there’s any kind of loophole in the contract, an attorney would be most useful.
Step 2: Check The Local Real Estate Law
Before you think of terminating your lease contract, you’d better do some reading. Every region has its own real estate laws. When you find the alternatives as well as the penalty compensation, then the landlord has to follow them as well. If there’s no specific clause in the contract, then you are entitled to enforce state law. And we suggest hiring an attorney to do that. They’ll be able to help you with the proper termination of the lease.
Step 3: Check Your Lease Contract
To get back safely to your lease contract, you might want to check your lease. If there are problems with the house, then contact the landlord and inform him. If there are problems on your end, then also check the contract before breaching it. If you don’t have specific clauses, then you might be legally obliged. Or if you already have a contract about leaving early, then the owner will not be able to hold you off for compensation.
Step 4: Talk to Your Landlord
If you want to break off the lease, then the first person you need to consult is your landlord. Talk to him about your problems. And also ask them about the penalty. And again, make sure to ensure that the deposit is returned to you. If the landlord agrees, then you can just sign the termination contract. And in that case, you won’t have to go through hassles.
Step 5: Send A Leaving Notice
Like any other contract, you have to give notice to your landlord at first. You can definitely submit a written letter, but even if it’s a conversation, it would mostly work. But still, a written notice would be best. You might have to submit the termination letter one or two months before your leave. And that way, you get to live in the place for a while. Also, inquire about your deposit. Some landlords allow the deposits to be cut with the remaining months.
Step 6: Get Everything in Writing
Before you terminate a contract, try to record everything. If the property is not healthy to live in, then you need to note down the problems first. Take pictures if you must. And when you are giving the notice of leave, keep it in writing. Make two copies and submit them to your landlord; keep one for yourself. Also, keep a copy of the termination letter for the lease. That way, the landlord won’t be able to hold you responsible for anything else.
Step 7: An Alternative Renter
When you are trying to leave the property abruptly, the landlord might ask you to pay a legal penalty or find an alternative. You can definitely find renters as an alternative to you. It even saves you from paying legal fees. You can re-rent the place. Or until you move out, just sublet the place. That way, you’ll be saving a huge amount.
Step 8: Consider Fines
When leaving the property abruptly, the fines are something to consider. You might have to pay one or two months rent as a fine. But there are some loopholes through which you’ll be able to get off the fine. These are the common terms where a penalty fine would not be available:
- Military duty
- The place is inhabitable.
- Health problems
Other than these three facts, you most likely have to pay a penalty fee for leaving a place before the contract expires.
Step 9: Clear The Deposit Issue
When you are done with all the necessary arrangements, the rest comes in with the deposit. This is owed to you by the landlord. Until the cash is redeposited in your account, you shouldn’t sign the termination contract. If the landlord is breaching the deposit terms, then you are legally obliged to hold them accountable.
When you’ve ticked off all the steps we mentioned above, then sign the contract and leave the place according to the notice. This will save hassle for both the owner and you as a tenant.
To Sum Up…
Once you terminate the lease, make sure to get all your papers from the landlord. Close the accounts so that there are no transactions. And again, fill up the fees of the real estate agent as well as the attorney. And with all these, you are no longer bound by a contract, and you can just leave the place.