Toronto tenant wants to extend lease a bit too early?

[Ashwin Samtani]

Hey guys,

I'm renting out a condo in the Toronto area, and I'm fortunate to have a great tenant. My tenant has been living in the condo for approximately 8 months now out of the 12 month lease.

My tenant called me this past week saying he would like to lock up another year with the lease and wants to do it soon to get it out of the way, which would be mutually beneficial for both of us. 

I'm just wondering what's the best way to go about doing this since he does have 4 months remaining in the current lease? Should we mutually terminate the agreement and then sign a lease for a year and 4 months? Or insist to the tenant that we wait closer to the end of the agreement before we sign a new lease (and possibly lose the tenant if he gets too nervous about locking something in within the hot rental market and finds something else)? Any other suggestions?

I really appreciate the advice.

Ashwin

[Hai Loc]

@Ashwin Samtani

I would make them sign a new lease and tack on the allowable 2.2% increase for 2020..

The tenant would likely want to do this as soon as their current lease expires..

Don’t let them get away with extending the tenancy without the legal rental increase in place.