the agreed rent is provided in a form other than money, such as the performance of certain kinds of work, said work must be performed as set out in the lease.
The lessor cannot:
Require the payment of more than one month’s rent.
Require the payment of rent in advance for more than the first payment period (maximum of one month). However, they can require the advance payment to be cashable immediately, even if the lease comes into effect at a later date. For example, if a lease is signed on April 15 but begins its term on July 1, the lessor is entitled to immediately require the lessee to pay rent for the first month only.
Charge additional amounts in the form of a security deposit or other charge, such as a key deposit.
Require postdated cheques.
Any clause in the lease that provides for such practices is invalid, and the lessee is not required to comply with it. The lessee may apply to the Tribunal to ensure their rights are respected.
Note that, although a lessor cannot require postdated cheques as a condition for signing the lease, the parties are permitted to mutually agree to this method of payment. If the parties to the lease have freely agreed to include such a clause in the lease, then they must comply with it.
The importance of proof of payment
The lessee has the right to require that they be given a receipt confirming that the rent has been paid. Rent receipts can be useful because, in the event of a dispute, the burden of proving that the rent was paid lies with the lessee – hence the importance of having proof in writing.
To be safe, keep proofs of rent payment for three years.
