What to do with your rental property if you are leaving Canada?

When it is time to leave Canada permanently or for an extended period, one of the most difficult issues to deal with is your rental property. The Canadian rental system is based on contract law and provincial legislation, which creates both opportunities and limitations for those who are forced to terminate their lease early. Understanding your rights and obligations will help you avoid financial losses, conflicts with your landlord, and negative consequences for your credit history.

Legal basis for early termination of a lease

Rental relationships in Canada are governed by provincial legislation, so procedures vary slightly depending on where you live. Ontario has the Residential Tenancies Act (RTA), British Columbia has the Residential Tenancy Act, Quebec has the Civil Code of Quebec, and other provinces have their own similar laws. All of these regulations establish that a lease agreement is a legal contract, the violation of which may result in financial consequences for the tenant.

There are two main types of lease agreements: fixed-term leases and month-to-month leases. Fixed-term agreements, usually for one year, automatically expire on the specified date, but early termination requires special procedures. Periodic agreements are more flexible — they can be terminated with appropriate notice, usually 60 days in Ontario or 30–60 days in other provinces.

Legal grounds for early termination

Canadian law provides several grounds for terminating a lease without financial penalties:

  1. Unsafe living conditions — if the dwelling does not meet sanitary standards, there is no heating or water, or there are pest problems. The landlord has the opportunity to remedy the situation, but if they ignore the problem, the tenant can legally terminate the agreement.

  2. Victims of domestic or sexual violence — most provinces allow such individuals to terminate their lease with reduced notice and no penalties, provided they provide appropriate documentation (police report, medical certificate, etc.).

  3. Breach of obligations by the landlord — if the landlord systematically fails to carry out repairs, does not provide basic utilities, or violates other terms of the agreement, the tenant may apply to the provincial rental commission for permission to terminate the agreement.

Formal notification procedure

Regardless of the reasons for moving out, the tenant is required to give written notice to the landlord. The forms and deadlines vary by province:

  • In Ontario, Form N9 is used, which requires a minimum of 60 days' notice for a monthly lease. The termination date must coincide with the last day of the rental period (usually the last day of the month).
  • In British Columbia, written notice is required: 28 days for weekly rentals and 30–60 days or less in special circumstances for other rentals.

Compliance with provincial requirements is critical: improperly executed notice may result in rejection of the application and extension of the lease obligations.

Financial consequences of early departure

If there are no legal grounds for termination, the tenant is theoretically responsible for payment until the end of the lease term. The landlord is obligated to “mitigate damages” — actively seek a new tenant at a fair price:

  • If a replacement is found for the same amount, the former tenant does not incur any additional costs.
  • If the rent has to be reduced (e.g., by $50/month), the former tenant may be required to compensate for the difference.

Some contracts contain a clause on “liquidated damages,” which sets a fixed amount of penalty. Such clauses are legal if the amount corresponds to the landlord's potential losses and is not a penalty.

Alternatives to termination: subletting and assignment

Instead of termination, you can choose:

  • Subletting — suitable for temporary departure. The original tenant remains responsible, and the subtenant pays them.
  • Assignment — complete transfer of rights and obligations to a new tenant. After successful assignment, the original tenant is no longer liable.

In both cases, the landlord's written consent is required. In British Columbia, the landlord cannot unreasonably refuse if there are at least six months left before the end of the contract. In Ontario, the tenant has the right to sublet, but the landlord can make reasonable demands on the candidates.

Settlement of the security deposit and inspection of the condition of the property

At the end of the lease, it is important to:

  1. Conduct a joint inspection of the condition of the property and complete an official Condition Inspection Report.

  2. The landlord must return the security deposit within 15 days of receiving the tenant's new address, provided there are no claims for damages.

  3. Comparing the move-in and move-out reports helps determine who is responsible for repairs.

The tenant's refusal to participate in the inspection may result in the loss of the right to a refund of the security deposit.

Special considerations for those moving abroad

For those leaving Canada permanently:

  • Consider the tax implications: owning property in Canada may affect your non-resident status.
  • Ensure reliable communication: leave your landlord and provincial commissions with your current contact details.
  • It is recommended that you appoint a trusted representative in Canada to resolve disputes or participate in legal proceedings.

Practical tips to minimize losses

  • Start negotiations with your landlord in advance.

  • Help find a new tenant: organize viewings, offer partial compensation for expenses.

  • Keep all documentation: copies of the agreement, correspondence, photos of the condition of the property, receipts.

  • Familiarize yourself with the decisions of provincial commissions in similar cases.

  • If you reach an impasse, contact the provincial rental commission for mediation or an official decision.

Conclusion

Resolving issues with rented accommodation when leaving Canada requires careful planning and knowledge of provincial legislation. Although early termination of a lease can have financial consequences, there are many legal ways to minimize losses, from finding legal grounds to subletting or transferring the lease. The key is to act in good faith, follow procedures, and maintain open communication with your landlord. In difficult situations, do not hesitate to seek professional assistance from lawyers or provincial commissions. The right approach will allow you to end your tenancy with minimal losses and maintain a good reputation for future transactions.