lease????

[sato2]

Hi,

Many in this forum mention "lease" what exactly is it?
and if a 6 months lease is required to rent an apartment how much is it in relation to the monthly rental fees? or is it an amount independent of the monthly rental?

Yours

 

[jes_ON]

Hi Sato2,

A lease is a contract (legal agreement) between you (tenant) and the landlord (owner) of the property. In addition to the rent amount, it covers included items (e.g. whether or not the landlord supplies appliances like a refrigerator or stove), property use and access rights, who is responsible for utilities, repairs and maintenance, etc.

The lease itself does not cost anything, however in some places you have to pay either a deposit or "last month's rent" along with the first month's rent at the time you sign the lease.

A 6-month lease means you agree to rent the property for at least 6 months - does not mean you have to pay for 6 months up front (can still pay monthly). But it does obligate you to pay the full amount. Say the rent is 1,000 per month, a 6 month lease means you ultimately agree to pay 6,000. If you leave early, you have to pay the difference between what you have already paid, and the 6-month amount. In some places, though, you only forfeit the deposit if you leave early.

A 6-month lease can be extended with a new lease, or if you stay past 6 months, you can go month-to-month with the same terms of the previous lease.

Many landlords want a 1-year lease, so if you're not sure about the place you want to live, a 6-month lease can be a good thing.

 

[sato2]

Hello,

Thank you Jes_ON. Very clear and straightforward.
Earlier in the forum, someone mentioned that for people who cannot prove credit history to rent an apartment or a house like a newcomer, some landlords may ask to pay the amount of the lease in order to rent the apartment or reference. and wondered what was it really!

I have a full credit history (banking and credit card during 11 years) in my the country but since I will be immigrating I am note sure that anything of it will matter in Canada? am I right?

Thanks once again

 

[Karlshammar]

Correct, your previous credit history will not show up on a Canadian credit check.

Hello,

Thank you Jes_ON. Very clear and straightforward.
Earlier in the forum, someone mentioned that for people who cannot prove credit history to rent an apartment or a house like a newcomer, some landlords may ask to pay the amount of the lease in order to rent the apartment or reference. and wondered what was it really!

I have a full credit history (banking and credit card during 11 years) in my the country but since I will be immigrating I am note sure that anything of it will matter in Canada? am I right?

Thanks once again

 

[Leon]

Each province has its own regulations on what the landlord can legally ask for. Normally they are not allowed to ask you to pay 6 months up front, even if you don't have good credit but they can refuse to rent to you. In Ontario they are only allowed to ask for first and last months rent. In Alberta they can only ask for first months rent and damage deposit which can only be as high as one months rent.

 

[sato2]

Hi,

Here, we have the same system as in Alberta; first month rent ahead and damage deposit amounting for one month rent.
How about in British Columbia?

Thanks

 

[toby]

In Vancouver the deposit is a half-month's rent, in advance.

 

[kumbu.bumbu]

It will be little hard to find an apartment with no credit history. But not impossible. If you have a job it would be easier by providing a pay slip or employment letter. If you have friends living where you are going they will be able to give better advise.

 

[toby]

If I had no credit history, but a little cash set aside, I'd propose to the landlord prepaying 3 months of rent as a gesture of good faith. One month would be the security deposit, then you don't pay rent for two months, thus using up your prepayment, and start monthly payments on the third month.

A reasonable landlord should agree to that.

 

[Karlshammar]

Unfortunately this may be illegal in some jurisdictions.

If I had no credit history, but a little cash set aside, I'd propose to the landlord prepaying 3 months of rent as a gesture of good faith. One month would be the security deposit, then you don't pay rent for two months, thus using up your prepayment, and start monthly payments on the third month.

A reasonable landlord should agree to that.

 

[rk2009]

It's unfortunate if it would be illegal. Think of it this way, you have no job no credit history in canada and you are in the initial stages of settling in and finding a job. Living in hotels is not a possibility, the only way you can assure a landlord is by providng extra advance.

I have seen this practice in other places too where landlords are individuals who do not care to go checking credit history, so they end up asking advances.

 

[Leon]

There was a news program about landlords in Ontario asking for pre-payment for up to 6 months from people who are coming in as FSW because they know they have some settlement funds with them. It is illegal but some people still do it.

 

[toby]

OK, let's say it is illegal for the landlord to demand prepayment, but is it illegal for the would-be tenant to offer (and for the landlord to accept)?

 

[Leon]

I don't know about that. I don't think it's illegal for the tenant to offer but it may be illegal for the landlord to accept. Still, as long as you don't tell anybody, who's gonna know?

 

[toby]

Well, if it's illegal for the landlord to accept, then he likely wouldn't give a receipt, and the tenant has no proof of payment. That's not a good situation to be in.