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592-T - Commercial Lease Agreement (Single Tenant Facility) - ncrealtors form
hey there my name is Mark Savelle I'm a realtor with sage real estate and a blogger over Toronto livings calm and if you haven't heard yet the Ontario government is bringing big changes to the way we lis sell properties in the province and in this video we're gonna dive right into it I'm gonna tell you what these new changes mean and how they will affect you alrighty so I got in my hand here the newly released residential tenancy agreement form this is something you've probably never seen before but should get used to very quickly because this will be the only form will be allowed to use to do residential leases in Ontario after April 30th 2018 all rentals will have to be done on these forms and if you haven't yet seen it I have a link in the description below where you can download one from the Ontario government's website let's get into this so why do we have this new agreement in place I mean we've been doing rentals for years in the city and and everything seems to be going fine so why change it now the reality is the system we were using is flawed there is all different types of contracts out there full of different conditions and clauses and terms and and it's a really convoluted system we have and I don't think a lot of people were getting burned because there was no regulation so the Ontario government as part of the Ontario fair housing plan made it a point of releasing one standardised mandatory form written in plain simple language now I've read this about 10-15 times already and I gotta say in the beginning I was I was a little hesitant I mean nobody likes hearing that the government is drafting up mandatory contracts that everyone's supposed to use I mean I've been a realtor for a decade what does the government know that I don't know that they can do better than me right that's that's kind of the general consensus but when you dive into the agreement there actually is a lot of good in it and I think in the long term switching to one mandatory standardized lease is going to make things a lot easier for everyone now if I had to sum up the lease in one word it would be clarity it is clear it is easy to understand there is no legalese there's no lawyer wording and complex and convoluted clauses and stuff like that it is really straightforward one thing I noticed is the contract is noticeably longer than some of the standard leases I would write for residential property but that's because they really go into detail and make sure the terms are clearly stated and very easy to understand now the beauty of the document is it outlines what you can and cannot ask for in a lease and if you've written a lot of leases in your past or if you're a landlord or property manager when you first read it you might kind of say to yourself whoa they're changing this they're changing that well I don't write it this way the reality is a lot of people write their contracts with clauses terms and conditions that shouldn't be in there in the first place so this really isn't changing the rules it's more clarifying what the rules always were and how we should be writing our lease contract so let me give you an example and this is something I'm guilty of and full transparency I've done it with all my leases not knowing that the rules stated otherwise but when I when I put together at least I always asked the tenant to give me a first and last month's rent deposit pretty standard nothing out of the ordinary well it's actually not allowed you're only allowed to ask for one month at the end of the lease you can't ask for the first and last and this is something that I would say 99.9% of Realtors who we sell properties have in their standard procedure so it's gonna be interesting to see how everybody adapts to this and starts getting comfortable with the fact that you could only ask for last month's rent another thing that popped out that really caught my attention is damage deposits you know landlords are always asking can I ask for five hundred dollar damage deposit what if they punch a hole through my wall and my answer is unfortunately you can't ask for one but I know there's a lot of Realtors or landlords or property manager out there that try and get away with that well in the new mandatory lease and that is very clearly stated that you are not allowed to do that and lastly I tend to pick up post-dated checks so every month I can just go to the bank I don't have to go to the property to get the check you can't do that either you could suggest it and they're welcome to take that process if they so choose to but you cannot demand a tenant pay you prepaid rent or predated checks or an automatic withdrawal they do not have to agree to that for convenience obviously it just works better for everybody but that was one thing that stood out to me that was business as usual and and now I might have to change and adjust based on what the rules actually do state so like I said you're gonna read this new document and you're gonna see some things that may look different from how you're doing business now just remember the rules haven't changed they're just now further clarified as to how we have to proceed and at the end of the least they also have a six page appendix and in the appendix they go over each clause in greater detail so some for for clarity purposes they they provide a few paragraphs where they explain the meaning behind the clauses or how these clauses are supposed to be drafted and written and filled out type of thing so I find that to be a really good resource for people to very easily understand what they're getting themselves into and I would say the strongest point of this new agreement is that the wording the wording is extremely clear it is very simple it is so straightforward and it is a welcome change to I think how some people draft up their clauses now because these conditions you know you can get really complex and and and and maybe miss the point that you were trying to make in some of the wording but with this new one nice and easy so a bit of criticism there is a few things I would like to see added to the new contract for example there's no section that lists out which appliances are going to be included in the lease so is there gonna be a fridge a stove a dishwasher I think they should just add one more section where we can very clearly list out what everything is because it'll make the process a lot easier going forward now one thing that's really important to note that yes this is a mandatory form and I think when I first heard the word mandatory and government written I thought well what I can't change this I have to go by what the government's telling me to put in my lease not true there is a section where you can add your own clauses but they make it very clear that if you are going to add your own clauses make sure they are in line with the landlord-tenant act so if you're trying to throw in things like no pets allowed or you know for a non-sufficient funds have to give me $200 it has to follow the rules of the land or attend a dock so you can make additions to the contract you just have to make sure they're in line with what their current rules are and a big question I've been hearing out there is well will this impact the market is this gonna make rents go up is it's gonna make rents go down I think it's a mute point either way this isn't really something that's going to change the values of rental properties it's just going to make the prompt the the process a little bit more easier to understand and a little bit more streamlined across the board so those are my thoughts on the new mandatory changes to the lease agreement here in Ontario let me know what you think in the comments below and if you haven't yet please hit subscribe thank you for watching
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