Real Estate Talk:
Income property / 7
A look at landlord’s obligations
By Joseph Marovitch
People who buy income property for the first time have certain preconceived notions of being a landlord. Initially, the buyer’s idea is, they will buy an income property and collect rent. It sounds easy enough, but there is more to being a landlord than collecting rent. There are the maintenance issues, tenant issues and the fact that the landlord is partially responsible for the people that live in their income property. Both the landlord and the tenant have responsibility and obligations to the lease. Next week I will discuss the tenant’s obligations. In this article we will discuss the landlord’s obligations.
People who buy income property for the first time have certain preconceived notions of being a landlord.
There are many issues and rules to being a Landlord. For this article I will discuss the main responsibilities.
1. Unit must be in clean and move in condition
The first responsibility of the landlord is to ensure the unit (apartment) is in clean and liveable condition. If there are repairs required prior to the tenant taking possession such as cracks in the walls or ceiling, these must be repaired and painted. If the sink is leaking, repair it. If air conditioning or appliances are included, these must be in good working order before possession.
2. Possession date
In the lease, which must be a Régie du logement form, a date for possession is indicated. The landlord must ensure that the unit is ready by the agreed upon date for the tenant to take possession. This means all preparation work including repairs and painting must be performed by that date.
3. Peaceful enjoyment of the unit
The tenant has the right to live in the unit in peace and enjoy the space. The landlord cannot disturb the tenant unless there is either an emergency or by mutual agreement and for good reason with prior notice.
‘The tenant has the right to live in the unit in peace and enjoy the space.’
The landlord can be held responsible for the disturbances caused by other tenants to the tenant in question. In such a case, the tenant must provide written notice to the landlord that there is a problem such as loud noises or barking dogs, and provide time for the landlord to resolve the situation.
4. Guarantee the unit can be used for the purpose for which it was rented
The landlord cannot change the status of the space during the entire time of the lease. For example, the space cannot be changed to offices or condos for sale, while the tenant is in the term of their lease.
5. Repair as necessary
The landlord is responsible for making necessary repairs to the unit as required. If the electrical system ceases to work or the basement floods or damage occurs to the outside of the building, then the landlords must repair this in a reasonable time from when the tenant, in writing, states there is a problem. Minor repairs such as changing light bulbs would not be the responsibility of the landlord, however it should be noted that in an emergency such as in -40-degree weather and the heat stops working, the landlord must respond immediately with a solution such as sending a repair person right away or having the tenant call a repair person and have the landlord pay for the issue.
‘Minor repairs such as changing light bulbs would not be the responsibility of the landlord…’
It should also be noted that if the unit includes appliances, and it is not stated in the lease that the tenant is responsible for these appliances, should the appliances break down, the landlord can be responsible for repairing or replacing the faulty appliances.
6. Maintain the form of the unit
The landlord must maintain the form of the unit and not, for example, change the space to offices or add an additional storage room unless the tenant should agree to such a change at the landlord’s expense.
These are the main responsibilities of the landlord however there can be more, and I would refer prospective landlords to refer to the Régie du logement for further details.
Next week’s topic: Income Property – Tenant’s obligations
Should you have questions or require further details, please feel free to contact me.
Have a great week.
State of the market
Since the G7 Summit went so well and Trudeau and Trump are such good friends now (sarcasm), what can we say about the state of the market? A trade war is about to go full-throttle. The best thing one might say is that based on world events, it appears Canada is the best place in the world to be. This being the case, one can assume that we will receive an influx of new residents from the US and abroad which means the market for homes will rise, prices will rise, and our economy will rise.
It is interesting to note that according to Altus Group, a consulting company that provides information on condo developments and a recent article in the Montreal Gazette, the demand for high-end condos has risen significantly. It is stated that the demand is outpacing the supply as mostly foreign buyers purchase these properties for investment and as pied-à-terre.
Read also: Real Estate Talk: Income Property / 6
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or firstname.lastname@example.org