Mastering Lease Terminations in Calgary: An Alberta Landlord’s Guide
- AspirePeak Properties
- 4 days ago
- 4 min read
Understanding lease termination rules is crucial for landlords in Calgary to stay compliant with Alberta's Residential Tenancies Act (RTA) and protect their investments. Whether dealing with a fixed-term or periodic lease, knowing the requirements for early termination ensures a smooth process for all parties involved.
At AspirePeak Properties, we specialize in managing fixed-term leases because of their clarity and benefits for landlords and investors. This guide explains the key differences between fixed-term and periodic leases, outlines specific rules for early termination, and explores what happens when tenants break their lease early.
Fixed-Term Leases: Defined Start and End Dates
A fixed-term lease has a clear start and end date, such as January 1 to December 31. The tenancy ends automatically on the last day, and no notice is required from either party.
Periodic Leases: Open-Ended Agreements
A periodic lease renews automatically on a weekly, monthly, or yearly basis, depending on the agreement. These leases continue indefinitely until one party provides proper notice to terminate.
Can a Landlord Terminate a Fixed-Term Lease Early?
In Alberta, landlords can only terminate a fixed-term lease early if the tenant commits a substantial breach of the tenancy agreement. Examples include:
Non-payment of rent
Significant property damage
Illegal activity on the property
Violation of lease terms (e.g., unauthorized pets or occupants)
To terminate the lease, landlords must serve a written notice specifying the breach and provide 14 clear days for the tenant to vacate. If the breach is remedied (e.g., overdue rent is paid), the notice becomes void.
Can a Landlord Terminate a Periodic Lease Early?
Landlords in Alberta can terminate a periodic lease with 90 days’ written notice under the following circumstances:
Buyer or Relative Moving In: If you sell a detached, semi-detached, or condominium unit and the buyer or their relative intends to move in, the 90 days begin once the sale conditions are waived.
Vacant Possession: If the buyer requires vacant possession as part of the sale agreement, the same 90-day notice applies.
Note: These two rules do not apply to multi-family properties.
365-Day Notice for Major Renovations: For major renovations that require the property to be vacant, landlords must provide 365 days’ written notice. This applies to significant work such as structural changes or system upgrades and does not include routine maintenance, painting, or flooring replacements.
If the tenant commits a substantial breach of the tenancy agreement. Examples include:
Non-payment of rent
Significant property damage
Illegal activity on the property
Violation of lease terms (e.g., unauthorized pets or occupants)
What Happens When a Tenant Breaks a Fixed-Term Lease?
Breaking a fixed-term lease early is a complex situation that requires landlords to follow specific rules under the RTA.
Landlord’s Responsibility: Best Efforts to Re-Rent
When a tenant breaks their lease early, landlords must make best efforts to re-rent the property as quickly as possible. This involves actively advertising the unit, showing it to prospective tenants, and ensuring it is ready for occupancy.
If the unit is re-rented for a lower rent amount than the original lease, the tenant who broke the lease is responsible for paying the difference in rent for the remainder of the original lease term. For example:
Original rent: $1,500/month
New rent: $1,400/month
Tenant’s responsibility: $100/month for the remaining months of the lease
Lease Break Fees
Landlords can charge a lease break fee to cover the costs associated with re-advertising and re-listing the property. At AspirePeak Properties, this fee is typically half a month’s rent, which must be paid upfront before the property is re-listed.
This fee helps cover:
Advertising costs
Administrative efforts to process the lease termination
Time spent showing the unit to prospective tenants
Tenant’s Financial Responsibilities
Until the property is re-rented, the tenant remains responsible for:
Rent Payments: The tenant must continue paying rent until a new tenant moves in.
Utilities: If utilities are part of the lease agreement, the tenant must keep them active and pay for them.
Tenant Insurance: Maintaining tenant insurance is required until the lease obligation ends.
Common Reasons Tenants Break a Lease
While breaking a lease is not ideal, tenants may have valid reasons for needing to do so. These include:
Job Relocation: A sudden job transfer or new employment opportunity in a different city.
Health Issues: Medical conditions that require a tenant to move closer to care or into a more suitable living arrangement.
Family Changes: Divorce, separation, or a growing family requiring a larger space.
Financial Hardship: Loss of income or other financial challenges making it difficult to afford rent.
Safety Concerns: Situations such as domestic violence or unsafe living conditions.
It’s important for tenants to communicate their situation with the landlord as soon as possible to explore potential solutions, such as subletting or negotiating an early termination agreement.
Why AspirePeak Properties Prefers Fixed-Term Leases
At AspirePeak Properties, we exclusively use fixed-term leases because they provide clarity and control for landlords and investors. Here’s why:
Easier Tenant Transitions: With fixed-term leases, landlords can plan for tenant turnover without the complications of periodic lease terminations.
Market Rent Adjustments: Fixed-term leases allow landlords to reassess and adjust rents at the end of each term to align with market conditions.
Investor Confidence: Fixed-term leases provide predictable rental income, which is crucial for meeting mortgage obligations and financial planning.
No Ambiguity: Unlike periodic leases, fixed-term agreements clearly define the tenancy’s end date, preventing misunderstandings between landlords and tenants.
Navigating Lease Terminations in Calgary with AspirePeak Properties
Managing lease terminations, especially early ones, can be challenging. AspirePeak Properties specializes in handling fixed-term leases to ensure compliance with Alberta’s rental laws and provide peace of mind for landlords.
Contact AspirePeak Properties today!
Let us handle the complexities of lease management so you can focus on what matters most!
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