The Lease Termination Timeline

The end of a lease agreement can be confusing and ambiguous, and sometimes a nasty affair, but it does not have to be! The need to keep good paying tenants is higher than ever, and the renewal process is an important one to follow.

The Consumer Protection Act clearly sets out the procedure for when a lease agreement is due to expire. We are here to make sure that you move along the lease termination timeline smoothly, with no bumps along the way!

Legislative requirements

Section 14(2)(c) of the Consumer Protection Act states that a Landlord must notify the Tenant in writing, no more than 80 business days and no less than 40 business days before the expiry date of a fixed-term agreement, of the upcoming expiry as well as any material changes to the lease agreement if the lease is renewed, as well as the options available to the Tenant regarding termination or renewal of the agreement.

Let’s go through each deadline date to make sure that you have complied with legislation to avoid any confusion or ambiguity at the expiry of your lease agreement:

T-80 business days before termination

Set a reminder for EIGHTY BUSINESS DAYS before the expiry of your lease agreement to notify your Tenant of the following:

  • Whether you are offering a renewal of the agreement or whether you are terminating the agreement on expiry;
  • Any material changes to the lease agreement if the lease is automatically continued on a month-to-month basis.
T-40 business days before termination

This is the last day for you to comply with section 14 of the Consumer Protection Act. Another reminder should be set at least 24 hours before this date. The TPN Residential LeasePack includes a Notice of Termination or Renewal of Fixed Term Lease for this exact purpose – click here to purchase your LeasePack now.

T-30 business days before termination

Clause 7 of the TPN Lease Agreement takes it one step further to assist in achieving zero ambiguity at the end of the lease agreement. This clause places an obligation on the Tenant to notify the Landlord in writing, not less than 30 business days before the expiry of the lease agreement, if the Tenant wishes to:

  • Terminate the lease on expiry of the lease agreement;
  • Extend the lease agreement by means of addendum or a new addendum.

If each step and deadline date is met and complied with, then the parties to the lease agreement know exactly what is going to occur upon expiry of the lease, which means no end of lease term ‘ums and ahs’ for you to deal with regarding your rental property.

Download the ‘Lease Termination Timeline PDF’ for your office here: https://bit.ly/3OUkZ7q

By Rowan Terry, Legal Counsel at TPN Credit Bureau

Ebook

Vacancy Survey 2023 Q3

The demand for residential rental property remains strong. Vacancies have declined nationally to 6.76% in the third quarter of 2023, the lowest since 2017. Despite a constrained economy, tenants have continued to meet their rental obligations with te…

View the Ebook