When you lease an item, the law protects you for the duration of the lease. You have rights and responsibilities as a lessee, whether the lease is for an undetermined duration, less than 4 months or 4 months or more.
The law also protects you if you want to end your lease earlier than planned. This might be the case if you finish your renovations ahead of schedule and no longer need the sander you rented for eight months, or if you’d prefer to return the paddleboard you rented for the season because you’d rather go kayaking instead.
Regardless of the duration of your lease, you can end it at any time. You have several options, depending on the duration of your lease. Some options involve paying fees, others do not.
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Important! The rules for renting an apartment are different than the ones in this article. |
Your main responsibility: returning the item
You can end your lease at any time. You must then return the item to the owner.
This is true whether you lease the item for less than 4 months (short or medium term), for 4 months or more (long term) or if your lease has no end date. In other words, you must return the item, regardless of the duration of your lease.
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Important: A written notice is sometimes required When your lease doesn’t have an end date and you want to put an end to it, you must send a written notice to the owner. Ideally, this is done by registered mail. You must send this notice 10 days before returning the item to the owner. |
The item must also be in good condition when you return it. This means that it shows only normal wear and tear. For instance, if you lease a pair of skates for the winter, it’s expected that the blades will need sharpening by the end of the lease. In fact, several skating associations recommend sharpening the blades at least once during the season — or more frequently, depending on how often the skates are used. However, excessive wear such as torn laces, would not be considered normal.
The owner could charge you a fee if you return the item in poor condition. You can contest the fee in these situations:
- The item was already damaged before the lease began.
- The damage resulted from normal wear and tear and age.
- The damage was caused by superior force, such as a flood, hurricane or earthquake.
It’s up to you to prove that the damage is due to one of these three reasons. Otherwise, you must pay the repair costs.
Ending a lease of less than 4 months without paying fees
You have three options for ending your lease of less than 4 months without paying fees.
You can ask the court to cancel your lease. You must prove to the court that the owner is not fulfilling their responsibilities and that this is causing you serious harm.
Important: Before taking legal action, it’s good practice to send a demand letter to the owner to ask them to fulfill their responsibilities. Sometimes, sending a demand letter is required.
| Did you know? If you’re asking for $15,000 or less, you must file your application with the Small Claims Court. |
If your lease allows it, you can transfer (assign) the lease to someone else.
By transferring your lease, the other person takes on your rights and responsibilities. They become the “lessee”. Once the transfer is complete, you are no longer responsible for the item. If any issues arise, the owner must address them with the new lessee.
To transfer the lease, you must complete all these steps:
- inform the owner that you wish to assign your lease (you can send a written notice to the owner by registered mail),
- provide the owner with the name and address of the person to whom you wish to transfer the lease,
- obtain the owner’s consent for the transfer.
If your lease allows it, you can sublease.
Subleasing means finding someone (the “sub-lessee”) who will use the item and make payments on your behalf.
However, you remain the lessee and are still responsible for the item. If issues arise, the owner can address them with you or with the sub-lessee.
To sublease an item, you must complete all these steps:
- inform the owner of your intention to sublease (you can send a written notice to the owner by registered mail),
- provide the owner with the name and address of the person to whom you wish to sublease,
- obtain the owner’s consent for the sublease.
Ending a lease of less than 4 months with fees
You can end a lease of less than 4 months at any time by reaching an agreement with the owner.
If you reach an agreement, you can have the owner sign a document that confirms the new end date.
The owner can charge you a fee if you end the lease early, which could include:
- unpaid installments that you still owe,
- compensation for damages you caused by ending the lease early, like money lost due to the item being difficult to sell or re-lease at the same price.
Ending a lease of 4 months or more without paying fees
You have five options for ending your lease of 4 months or more without paying additional fees.
You can buy the item you’re leasing, making you its owner.
Important: You can only buy the item if your lease contains a guaranteed residual value clause or an option to purchase clause.
| Your lease contains a guaranteed residual value clause | Your lease contains an option to purchase clause |
| You can purchase the item at any time during the lease.
To do so, you must pay all remaining amounts owed under the lease as well as the guaranteed residual value. |
You can purchase the item at the end of the lease. You must pay the sum set out in your lease for the purchase of the item (the buyback price). |
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The owner must provide the item according to the terms and conditions set out in the lease.
If your lease includes a guaranteed residual value clause, you typically have a short window to cancel the least at no cost.
| If you have already received the item | If you have not yet received the item |
| You can purchase the item at any time during the lease.
To do so, you must pay all remaining amounts owed under the lease as well as the guaranteed residual value. |
You can purchase the item at the end of the lease. You must pay the sum set out in your lease for the purchase of the item (the buyback price). |
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The owner must reimburse you for all sums you paid to lease the item.
You can ask a court to cancel your lease. The court can cancel your lease if you prove that the owner is not fulfilling their responsibilities and that this is causing you serious harm.
Important: Before taking legal action, it’s good practice to send a demand letter to the owner to ask them to fulfill their responsibilities. Sometimes, sending a demand letter is required.
| Did you know? If you’re asking for $15,000 or less, you must file your application with the Small Claims Court. |
If your lease allows it, you can transfer (assign) the lease to someone else.
By transferring your lease, the other person takes on your rights and responsibilities. They become the “lessee”. Once the transfer is complete, you are no longer responsible for the item. If any issues arise, the owner must address them with the new lessee.
To transfer the lease, you must complete all these steps:
- inform the owner that you wish to assign your lease (you can send a written notice to the owner by registered mail),
- provide the owner with the name and address of the person to whom you wish to transfer the lease,
- obtain the owner’s consent for the transfer.
If your lease allows it, you can sublease the item.
Subleasing means finding someone (the “sub-lessee”) who will use the item and make payments on your behalf.
However, you remain the lessee and are still responsible for the item. If issues arise, the owner can address them with you or with the sub-lessee.
To sublease an item, you must complete all these steps:
- inform the owner of your intention to sublease (you can send a written notice to the owner by registered mail),
- provide the owner with the name and address of the person to whom you wish to sublease,
- obtain the owner’s consent for the sublease.
Ending a lease of 4 months or more with fees
You can end your lease of 4 months or more at any time.
However, the owner can charge you a cancellation fee for ending the lease early. The owner can ask you to pay:
- unpaid installments that you still owe,
- compensation for damages you caused by ending the lease early, like money lost due to the item being difficult to sell or re-lease at the same price.