Leases are a binding contract between a tenant and a landlord and breaking a lease is a breach of this contract. Despite this breach, you may find yourself with a valid reason for needing to break your lease – such as moving to another city.
If you are in this situation, we want to help you try to avoid – or at least minimize- penalties from your landlord. The best way for you to do this is to:
- Familiarize yourself with your province’s necessary legal requirements to terminate a lease.
- Know whether you have a “Fixed” or “Periodic” term lease. A Fixed Term is a lease with a specified end, while a Periodic Term is a lease that runs month-to-month, week-to-week or other pre-determined time.
- Be sure to provide your landlord with as much notice as possible.
- Wherever permissible offer to help finding a replacement tenant.
Each province has different regulations pertaining to leases or tenant agreements, and how to cancel a lease.
Prince Edward Island
- You can only terminate a fixed term lease at the end of the term.
- Written notice needs to be provided at least two months prior to the end of the term.
- If you fail to terminate a fixed term lease upon its expiry, it automatically converts to a month-to-month rental agreement.
- If your lease is on a month-to-month basis, written notice of termination must be sent to the landlord on or before the day rent is due and at least one month before you wish to move.
- The security deposit plus interest must be returned to you within 10 days. If the landlord wishes to retain some or all of the security deposit, a notice stating why must be served.
- Subletting is permitted with the landlord’s consent.
For additional details, you can also refer to PEI’s rental board website.
Office of the Director of Residential Rental Property
5th Floor, Suite 501
134 Kent Street
P.O. Box 577
Toll-free: (PEI) 1-800-501-6268
Also check out our article How to cancel my lease that deals with detailed steps to follow.