Real Estate Talk:
Income property / 7

A look at the landlord’s obligations

By Joseph Marovitch

Updated January 8, 2025

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 purchase 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 responsibilities and obligations to the lease. Next week we 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. The 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 before 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 Tribunal administratif du logement (formerly 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 have the ability to 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 issue.

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 landlord must repair these issues in a reasonable time from when the tenant states in writing that 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, in the lease, 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, and not due to the tenant, 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 the TAL – Tribunal administratif du logement at 514 873-2245 for further details.

The information I provide in these articles is a summary. Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: Income property /8 – Tenant’s Obligations

State of the market

Welcome to the year 2025. This will be a year of challenges and opportunities. The world is in the midst of change and possibly a reset. However, there is always a way forward and there are always opportunities to be had in any market.

Currently, property values are rising due to low interest rates and inflation. However, there are threats of increased tariffs and colonial expansion to countries such as Panama, Greenland, Mexico and even Canada. This type of talk makes governments nervous and retaliatory. It makes the citizens of these countries nervous and afraid. Pray that none of these issues comes to bear.

‘The world is in the midst of change and possibly a reset. However, there is always a way forward and there are always opportunities to be had in any market.’

However, the repercussions of such issues would be the slowing of supply chains for goods and services, rising inflation and interest rates causing property values to decrease as property would be expensive to purchase and maintain. Beyond this, all these countries are members of the North Atlantic Treaty Organization (NATO) and the repercussions of U.S. expansion could be even worse.

All this being stated, out of chaos does arise possibilities and opportunities. Many people, businesses and countries are taking precautions to protect themselves against increased tariffs, and the best thing a buyer can do right now is lock in a pre-approval for as long as possible and purchase a property at a low interest rate.

Should these tariffs come to bear, there would be an opportunity to purchase property at a discount but with higher interest rates and carrying costs. If one is an investor in income property, investors may find income property at lower prices and higher cap rates, assuming the investor has enough capital to maintain carrying costs till the economic landscape calms down.

The other side of the coin is if the bluster is just that, bluster, then any investment at this time may well pay off in the future.

Have a great week and a happy new year!

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Feature image: StockPholio.com

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