As of April 30th, 2018 it has become a legal obligation for most residential landlords to use a standardized lease agreement. According to the Financial Post, this 13-page document intends to “level a very unbalanced playing field for tenants and landlords, and close a gap in negotiating power between the two parties.” Here’s what you need to know:
One of the main reasons for this move towards a standardized lease agreement is to eliminate overly-wordy lease agreements that intend to trick renters. Many landlords attempt to hide illegal clauses and agreements in their leases by disguising them in confusing and flowery language. This new standardized lease will eliminate the opportunity for unscrupulous landlords to trick people.
This new lease agreement will also create consistency across rental providers. It will be more difficult for rules and guidelines to differentiate from landlord to landlord, and will therefore eliminate unfair advantages amongst property management companies. Tenants will have realistic expectations for the service they should receive and better understand their rights.
With these standardized expectations, tenants will be able to more clearly identify if they are being taken advantage of. Becoming familiar with this document ahead of time will put tenants in a position of power as they are better equipped to advocate for themselves and demand fair treatment.
More Affordable Housing
Many large cities are experiencing an affordable housing crisis. It is thought that eliminating the opportunity to trick tenants and include illegal hidden fees in lease agreements will contribute to more affordable housing options. There will be less of a gap between what large property management companies are offering and what small individual landlords are offering.
These new lease agreements should be particularly helpful in major cities such as Toronto that are experiencing low vacancy rates and skyrocketing rental prices which is currently resulting in a crisis in affordable housing. The standardized lease agreement will ideally close this gap.
Improved Human Rights
Finally, this standardized lease will ensure that all residential tenants are treated with dignity and respect. Tenants will be able to refer to this document to back up any concerns or complaints they have about the legitimacy of their current lease. Improved human rights will create a more equitable property management industry and hold providers to a higher degree of accountability.
Contact the team at Central Erin Property Management for more information about this standardized lease, or for help finding a rental property run by reliable and honest property managers.