Early Lease termination by a Tenant and the Consumer Protection Act Under the Consumer Protection Act (CPA) tenants can give landlords 20 business days’ written notice if they want to terminate a lease early and vacate the rental property premises.
While tenants may cancel a lease early, the landlord is entitled to “reasonable” costs that may be incurred to find a new tenant. Reasonable amounts include loss of rental income, commissions paid to agents, as well as the cost of advertising the property, are some of the costs that can be recouped from a tenant in the circumstance of an early lease termination by a tenant. Landlords therefore cannot penalise tenants any amount just because they have cancelled a lease early or continue to invoice the tenant a monthly rental for the balance of the lease.
Most landlords have bonds on their properties and these payments have to be met. Even so, the CPA stipulates that a maximum of 2 months rental cancellation penalty may be charged to the tenant where a landlord is unable to find a new tenant, and then only for the actual loss of income. Landlords therefore cannot continue to charge the departing tenant once a new tenant has been found. It is, however, the landlord’s responsibility to find a new tenant. But, landlords cannot just turn away prospective tenants and attempt to make the departing tenants pay the costs. Should the departing tenant believe that the landlord is not acting in good faith he / she has every right to approach the Rental Housing Tribunal for recourse. Tenants, however, do need to remember that the costs incurred with cancelling a lease are completely separate from those associated with damage to a property. Landlords have every right to charge tenants for repairs for which the tenants are liable. The “reasonable cancellation costs” would be separate charges to the damages amounts, which are generally deducted off deposits.