Tenants should be aware of the concepts of refusal and fundamental violation. In essence, these terms lead to the argument that the lessor`s default was so serious that the tenant was deprived of the essential benefit of what he had negotiated under the tenancy agreement. There is a high threshold to argue that the lease was breached in this way, but was successfully argued, for example, if a landlord refused to give consent to the tenant, to allocate interest in the rent, or if a landlord changed access to the premises, so that the tenant could not obtain deliveries of goods without too much difficulty. In both cases, the tenant would invoke the lessor`s violation by his conduct and give him the right to consider the tenancy agreement as terminated and to sue the lessor for damages. These damages include the difference in the market value of a new lease and the cost of moving to a new building. In summary, the landlord`s express intention not to accept the award of the tenancy agreement is an important factor in finding that the landlord took possession of the premises on behalf of the tenant. Therefore, it is customary for commercial landlords to inform tenants in writing that the landlord is reclaiming the premises solely for the benefit of the tenant. By implementing this intention in writing, an owner can document his intention to pursue Option 2 and not Option 1. Option 1: The lessor may treat the lease as terminated and repossess on his own account, thus terminating any other liability of the tenant; The procedure is governed by the LTA. According to Section 125 of the RPP, each lease states that the lessor has the “power to be derailed under the law.” Depending on the rental conditions, a landlord has other remedies. This includes: As long as a landlord makes reasonable and good faith efforts to insure a new tenant, the lessor will likely fulfill his obligation to reduce the damage, even if the landlord is not able to immediately insure a new tenant. In order to document good damage reduction efforts, homeowners and their property managers must maintain or record all steps in finding a new tenant that should be similar to the rental measures of other similar commercial properties owned by the owner (if any).
Both landlords and tenants should keep lines of communication open to find reasonable and perhaps unorthodox solutions in these difficult circumstances. As unexpected as the situation we are currently in, finding a middle ground can sometimes lead to a long-term and prosperous business relationship that is mutually beneficial to both the landlord and the tenant.