Introduction to Landlord and Tenant Law (19:I): Difference between revisions
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Introduction to Landlord and Tenant Law (19:I) (view source)
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The tenant is considered an occupier, and inherits all duties that go along with that designation. A tenant should take reasonable care to inspect, notify the landlord, and give warning to an invitee of any unusual danger in the common areas. Where an occupier can foresee that a trespasser may enter the property, there is a duty to treat the trespasser with common humanity. | The tenant is considered an occupier, and inherits all duties that go along with that designation. A tenant should take reasonable care to inspect, notify the landlord, and give warning to an invitee of any unusual danger in the common areas. Where an occupier can foresee that a trespasser may enter the property, there is a duty to treat the trespasser with common humanity. | ||
== E. Termination of Tenancy == | |||
=== 1. In General === | |||
If the landlord terminates because of the tenant’s default, the landlord’s damages are generally based on the landlord’s anticipated loss for the balance of the lease term. However, landlords are expected to mitigate their losses and so they are not always at liberty to claim damages for the remainder of the lease term. See ''Highway Properties Ltd. v Kelly, Douglas & Co. Ltd.'' (above). (There appears to be no duty to mitigate where the landlord does not accept the tenant’s repudiation of the lease, and simply sues for rent as it comes due under the principles of property law. Should this situation arise, clients are strongly advised to consult an experienced lawyer.) | |||
There may also be damages available for work done to the property, the cost of re-renting, and the like. In a falling rental market, a tenant may be held responsible for the landlord’s losses in acquiring a new tenant at a lower rent. The landlord must look for another reasonable tenant. | |||
=== 2. Rent Acceleration === | |||
An agreement may contain a clause for rent acceleration. Rent is usually accelerated by 3 months, meaning for example that if you owe one month’s rent of $2,000, at the end of tenancy that becomes $6,000. | |||
=== 3. Bankruptcy and Insolvency === | |||
A trustee in bankruptcy can take over for a tenant and break the lease with fewer penalties than the tenant. | |||
=== 4. Personal Liabilities === | |||
If a personal guarantee is included in the lease agreement, the tenant will be held personally responsible for monies owed when their company is insolvent. However, personal guarantees do not necessarily require a determination of insolvency in order to obligate a tenant. Also, there are issues for a guarantor and a covenantor regarding when liability accrues. Sometimes the guarantor is made a party to the lease (as one of the tenants), as well. | |||
