Rental contract details

1. Rental period. Typically 2 years.
2. Date of Commencement
3. Date of Completion
4. Rental Consideration. The amount of rental may be freely negotiated.
5. Inclusive/Exclusive. (sic) Whether the rent is inclusive/exclusive of rates and/or management fees. Rates are due to the government and will be charged to the person occupying the premises unless there is an agreement in place that states otherwise. Building management fees are by negotiation. Typically, rents will be inclusive of both, although many rents are initially quoted as exclusive.
6. Other expenses. Club fees associated with the building may, or may not, be included in the management fees - check and include this in the contract if appropriate. Utility bills are typically borne by the tenant, although this may be altered by negotiation and included in the contract. The landlord is obliged by law to pay government rent (see Other included areas) and property tax.
7. Payment Period. Typically monthly, but by negotiation.
8. Rental Due Date. The landlord may, by virtue of law, begin eviction procedures against a tenant once the rent is more than 15 days overdue or if the tenant is consistently late in paying rent.
9. Payment Method. Cheque, cash, credit card, money order, bank transfer, and/or whatever you negotiate. The property owner is required by law to issue the tenant with a receipt stating the name and address of the landlord, the period in respect of which such rent was paid, and the date of payment.
10. Rental Deposit. Generally 2 months rent, but may be altered by negotiation. The landlord should provide a receipt for the deposit. The deposit will be returned without interest and the landlord may request a receipt from the tenant. If you have included an option to renew, then any change to the deposit amount upon contract renewal should also be included in the initial contract.
11. Option to renew the rental contract. If any. The time during which this option may be exercised, duration and price must be clearly stated. An option with terms ‘by negotiation’ does not confer a true option.
12. Break Clause. Typically, after 12 months the tenant may give 2 months notice and terminate the rental agreement. This type of clause is in favour of the tenant, the landlord is not normally given these rights.
13. Termination of Contract. How the tenancy will end. If nothing is in writing it is assumed that fixed term tenancies (standard 2 years leases) will terminate on the date of expiry, and monthly tenancies will terminate by written notice.
14. Final Inspection. The contract should stipulate when the final inspection of the rental property should be carried out and when the deposit will be returned to the tenant on termination of the rental contract. Typically, the final inspection should be complete prior to handing over keys and before or on the last day of the agreement, and the deposit returned within 14 days of the contract end. Include the method of payment.

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