Lease Myths - some home truths
There are some popular common terms used in property management that, when used, can inadvertently confuse tenants. Let’s take a look at some of the most common ones in series 1 of Lease Mythbusters.
Tenants are on a month by ‘month’ lease.
There is no such thing as a ‘month by month’ lease under the Residential Tenancies and Rooming Act. This is a term that is used without understanding the negative impact it may have on what people think they can and can’t do when vacating etc. This type of lease is known as a ‘periodic tenancy’.
Tenants are on a ‘6-month’ lease.
Similar to the above, there is no such thing as a 6-month lease. This is actually be classified a ‘fixed’ term tenancy. Six months refers to the time frame of the fixed term agreement. In fact, a fixed term agreement can be for any number of months. There are no requirements for a fixed term to be a certain period of time. Provided the lessor and the tenant agree to the time frame of the agreement, it could be for as little or as long as both parties agree to.
Tenants are required to pay two weeks in advance when they move in.
The truth is that tenants are not required to pay their rent two weeks in advance. In reality, tenants are required to pay two weeks rent before they pick up their keys. They are not required to stay permanently two weeks ahead in their rent payments.