Rental Agreement Parental Leave: What Applies to Temporary Rentals?

Being on parental leave brings significant life changes, and for many, it's a time to re-evaluate their living situation. A common question is whether one can rent out their primary residence temporarily, perhaps if moving elsewhere or seeking an additional income source. Entering into a rental agreement for parental leave requires careful consideration and knowledge of applicable regulations. This article provides a comprehensive guide for those considering renting out their home during parental leave.

Why Rent Out Your Home During Parental Leave?

There are several reasons why one might consider renting out their home during parental leave. Perhaps you plan to stay with a partner or relatives for a period, or you see it as an opportunity to supplement your income during a time when earnings might be lower. Temporary renting out during parental leave can be a good solution, but it's important to understand both the opportunities and obligations.

Legal Aspects and Permissions

Before signing a rental agreement for parental leave, it's crucial to verify your right to rent out your home. If you own your property (house or condominium), you typically don't need permission for short-term rentals, but exceptions might exist in bylaws or local regulations. For those renting out their own rental apartment, different rules apply. You usually need permission from your landlord to sublet, even if it's your primary residence. This also applies during parental leave. Renting out without permission can lead to the termination of your own rental contract.

Key Elements of a Parental Leave Rental Agreement

A clear and correct rental agreement is the foundation for a secure rental. When drafting a rental agreement for parental leave, the following points should be clearly specified:

• Parties: Full names and personal/organization numbers of both you as the landlord and the tenant.
• Property: Full address, apartment number, and a description of what is included in the rental (e.g., storage unit, parking space).
• Rental Period: Clearly state the start and end dates of the rental. If it's a continuous rental with a notice period, specify this.
• Rent: The amount of monthly rent, what is included (heating, water, electricity, internet), and when the rent is due.
• Security Deposit: If a security deposit is required, state the amount and the conditions for its refund.
• Notice Period: If the agreement is not fixed-term, specify the notice period according to law or your mutual agreement.
• Property Rules: Any rules regarding smoking, pets, further subletting (if the tenant wishes to sublet), etc.
• Inspection: Plan for an inspection of the property upon move-in and move-out.

Tenant's Rights and Responsibilities

Even with temporary renting during parental leave, the tenant has certain rights. The tenant has the right to a dwelling in good condition that meets applicable safety standards. The tenant also has the right to undisturbed possession, meaning you as the landlord cannot unnecessarily disturb the tenant. The tenant is obligated to pay rent on time, take good care of the property, and adhere to the rules stated in the rental agreement.

Regulations for Parental Leave Rentals – Fixed-Term Agreements

If you plan to rent out your home for a specific period, such as throughout your parental leave, you can establish a fixed-term rental agreement. Such an agreement automatically terminates on the agreed-upon end date, without requiring notice. However, it's important that the fixed term is genuinely intended and not used to circumvent rules regarding the right of possession. For a fixed-term agreement to be valid, there often needs to be a reasonable cause for the time limitation, which parental leave can constitute.

What Happens After Parental Leave?

As your parental leave approaches its end, it's time to consider the future of the rental. If you had a fixed-term agreement that expires, the tenant moves out. If the agreement was for an indefinite period, or if you wish to extend, you need to reach a new agreement. Keep in mind that if the tenant has lived in the property for a certain duration, a right of possession may arise, making it more difficult for you to regain the property.

Common Mistakes to Avoid

• Not having a written agreement: Verbal agreements are legally binding but very difficult to prove. A written rental agreement for parental leave is always preferable.
• Not obtaining permission: If you are subletting your rental, ensure you have permission from your landlord.
• Not specifying terms: Unclear agreements easily lead to misunderstandings and conflicts.
• Not knowing the rules: Both landlords and tenants should be aware of rental laws and regulations regarding subletting.

Conclusion

Renting out your home during parental leave can be a practical solution, but it requires understanding the rules and establishing a clear rental agreement. By being meticulous with the contract and respecting both your own and the tenant's rights, you can ensure a smooth and secure rental process. Remember that temporary renting during parental leave can be a good solution if handled correctly.

FAQ

Can I rent out my condominium during parental leave?

Yes, it's usually permissible to rent out your condominium during parental leave. However, check your condominium association's bylaws for any specific rules or permission requirements.

Do I need landlord permission to sublet my rental apartment?

Yes, if you are subletting your rental apartment, even during parental leave, you typically need permission from your landlord. Apply for permission well in advance.

What is a reasonable cause for a fixed-term rental agreement?

A reasonable cause could be that you yourself need the property at a specific time, for instance, when your parental leave ends. The parental leave itself can also be a reason for a fixed term if you plan to return to the property afterward.

Can a tenant gain a right of possession with temporary rentals?

Yes, if the rental continues for a significant, uninterrupted period, the tenant may acquire an indirect right of possession. This means the tenant could be entitled to compensation if the agreement is terminated. A clearly defined fixed-term agreement with a valid reason reduces this risk.

What is included in the rent when I rent out my home?

It's up to you and the tenant to agree on what is included in the rent. Typically, heating and water are included. Electricity and internet can either be included or paid separately by the tenant, which should be clearly specified in the rental agreement.