What Are Garage Rental Laws?
Garage rental laws are a set of legal guidelines and regulations that govern the rental of garages, car ports, and other forms of off-street parking facilities. These laws provide a framework for the obligations and responsibilities of both landlords and tenants in a garage rental with the primary goal of ensuring a fair, transparent, and secure environment for both parties.
For landlords, knowledge of garage rental laws is crucial for protecting their interests. Compliance with local laws can help avoid potential legal disputes, enable the maximum rental price for the property, and facilitate the management of tenants effectively. For instance, these laws may delineate the responsibilities of landlords to the safety and accessibility of the garages they rent out, cover maintenance and repair duties, and set out the legal grounds for terminating a lease agreement.
For tenants, understanding their rights and obligations under garage rental laws are equally important . Tenants must be aware of their responsibilities to maintain the premises, abide by any rules and regulations set forth by the landlord, and handle rental payments on time. In addition, many garage rental laws afford certain rights to tenants, such as the right to a habitable garage, the right to privacy, and the right to live in a nuisance-free space.
Broadly speaking, garage rental laws typically cover areas such as: the landlord’s obligation to ensure the property is in good condition, the tenant’s duty to keep the property in a clean and usable state, the rent payment process, deposits, evictions and termination of leases, sub leasing, and special requirements for renting to certain types of tenants, such as those who rent a garage to live in rather than to store a vehicle.
Given the potential complexity of garage rental laws, it is important gather information from multiple sources to understand the specific regulations applicable in a landlord or tenant’s locality.
The Legalities of Renting a Garage
It is vital for landlords to be aware of any regulatory laws that dictate the legality of renting out a garage. For landlords offering a garage for rent, there are a number of legal requirements they need to comply with. Without these in place, landlords could face prosecution or be compelled to pay compensation for breach of contract.
Planning permission Renting out a garage will often be considered a material change of use unless the garage is to be used for domestic or storage purposes. Planning permission may be required if the garage is to be rented out. Some areas of the country have additional planning restrictions. For example, certain parts of London require the landowner to apply for a house in multiple occupation (HMO) licence if particular conditions are met. If planning permission is required for renting out the garage, then as a minimum the landlord should discuss the proposed plans with the local planning authority. The application can be submitted either as: – an application for prior approval; or – a full planning application. The landlord may need to pay a fee upon submission of their application. The size of this fee depends on the planning authority and the type of application submitted. If the planning authority has not responded within eight weeks, the landlord should contact them to chase up the application. If after two years the planning authority has still not responded to the application, the landlord will have deemed approval to use the property consistent with the proposal.
Land use Landowners should also be aware of land use restrictions that may prevent them from letting out a garage. It is illegal to rent out a property without the correct planning permission or without having obtained the prior approval of the local planning authority. Common land use restrictions include the following: – number of residents. A property’s use for the purpose of renting out a garage may be restricted if the total number of tenants exceeds the approved number; – purpose. If an area is listed as a garage area, it will be an offence to use the building for domestic purposes; – the type of tenant. If the permitted occupation of residential property is limited to a certain class of tenant, it may be illegal to offer the property to a tenant who does not fall within the parameters of the permitted class; – the ability of tenants to make alterations to the property; and – restrictions on how long tenants are permitted to live in the property.
Garage Rental Lease Agreements
Whether you are renting space in a block of garages, a row of garages, or a free standing garage, having a written lease is essential. Writing down your contract is essential because you really want to protect yourself from disputes down the road. One half page of clear words can prevent years of litigation.
A lease must include: (a) identification of the parties, (b) the legal description of the property being rented, (c) the duration of the lease – the dates between which the tenant is allowed to stay on the property, (d) the amount of rent, (e) any extra services the landlord wants to provide the tenant in exchange for extra rent, (f) the obligations of the parties during the duration of the lease (for example, is the tenant allowed to use paint in the garage or must it be removed at the end of the lease). Some leases will also include contact information for the parties, a place for signatures, and a space for the notary public to sign. If this seems like a lot, step back for a minute. It isn’t really that much detail, and it’s all there for a reason. A well-written, clear contract is essential for all parties.
Rights and Responsibilities of Tenants
The rights and responsibilities of a tenant renting a garage are similar to those of a residential or a business tenant unless otherwise specified. A tenant can expect the landlord (landlord tenant) or sub landlord (sub landlord tenant) to have taken "reasonable care" of the premises prior to letting it out.
The right to quiet enjoyment means the tenant can calmly use the premises without disturbance during the term of the lease. The tenant is entitled to privacy and may come and go as he or she pleases. The tenant has the right to on-site maintenance and repair services to keep the garage in a safe condition. Common areas such as elevators, entryways, indoor parking, swimming pools or gyms intended for tenant use require not only maintenance but extra levels of security in larger buildings. The landlord or sub landlord must ensure that the common areas are maintained to prevent any injury to the tenants and their guests.
Unless prohibited by the lease, tenants have the right to allow visitors to use the facilities rented. However, the landlord or sub landlord has the right to control who uses the facilities. Also, the landlord may put restrictions on the hours when a garage is available for use to minimize disruption to other tenants or the building’s owner.
Some leases limit tenants’ use of the garage to the storage of a particular type of car and prohibit any home repairs. Other leases will allow for infrequent or temporary use for small repairs, provided they do not compromise the safety and security of the building. Tenants are entitled to full use of the garage for any purpose outlined in the lease, provided that it is lawful.
Tenants have an implied duty to take care of the garage and not cause damage. Leases typically require certain routine maintenance such as changing of the oil in gas tanks. Tenants may not modify or renovate premises or change the locks without the landlord’s permission. Failure to obtain the landlord’s consent may lead to eviction. Tenants are responsible for any loss or damage that he or she may cause to the garage, or to the garage or the tenant’s possessions caused by someone under the tenant’s control. Tenants are also required to prevent others from interfering with the rights of other tenants. A consistent failure to do so may lead to eviction.
Many leases entitle the landlord to enter the premises for a reasonable purpose and only upon reasonable notice. Some leases allow the landlord to enter at times specified in the lease such as for cleaning or to verify use of the premises as stipulated in the lease agreement. The notice period will often range from 24 to 48 hours. In some cases, the landlord may be required to provide notice to a named family member, spouse or roommate. Another part of the lease may impose an obligation on the tenant to keep the landlord informed about changes in residency, such as if the tenant is married or leaves the premises for an extended period.
Landlords may be required to give a tenant a return, usually within 30 days of the end of the tenancy, all deposits, except for amounts withheld to cover unpaid rent owed by the tenant, reasonable cleaning fees, damages to the premises or for reasonable wear and tear.
This right does not apply in all cases. Where the tenant has a history of non-payment of rent, the landlord is not required to provide a grace period before terminating the tenancy. If the lease was formed orally, a grace period of 5 days is required. For oral leases that exceed 3 months, the grace period is 10 days. Tenancies longer than three months but less than a year require 30 days’ grace. Leases longer than a year require 60 days’ notice.
Obligations and Liabilities of Landlords
Landlord obligations in garage rental agreements vary across the country. Some provinces may have very specific and unique obligations under provincial legislation relating to the agreement itself, the premises and other matters. There may also be restrictions imposed by municipalities concerning zoning, insurance, and licensing; where the subject garage is located will have a bearing on liability. Where applicable, municipal by-laws may limit liability in cases of negligence, injuries, damages, etc. Beltsom v. 1879680 Ontario Inc., 2019 ONCA 38 (CanLII). Where no municipal regulations apply, case law informs what a landlord would generally be obligated to provide in garages rented out to tenants.
Considerations
Where a rental unit is contemplated to be used as a garage for a vehicle only, the Landlord and Tenant Board of Ontario ("LTB") has found that the Ontario Residential Tenancies Act, 2006 (the "RTA") does not apply. Khazir v. Gaiter, 2020 CanLII 17237 (CanLII). Garages used to store personal belongings may fall within the LTB’s jurisdiction. Garages rented for use as a workshop may also be caught by the RTA , depending on their usage overall. Garages used for both storage and as a workshop would not fall within the jurisdiction of the RTA if that predominant use were established. O’Keefe v. Ardila, 2014 CanLII 27235 (CanLII).
In scenarios where the RTA does apply, landlords would generally be obligated to provide adequate and safe heat and hot water to a rented garage used for living and working. Biddlecombe v. Mehta, 2017 CanLII 23 (ON LTB).
Landlords’ liabilities will vary depending on whether the categories above are met, and requirements will be different where the garage is rented for a vehicle alone.
A leased garage for a vehicle may or may not be rented with any additional space. This will influence the inputs necessary to make a garage habitable, and therefore fit for rent. The landlord would generally be expected to ensure the availability of heating and cooling, as well as the proper functioning of electricity and plumbing.
Landlords are generally not obligated to undertake cosmetic repairs and maintenance. Farkas v. Phantom, 2017 ONSC 5558 (CanLII). Landlords may be liable at common law for any injuries or damages occurring on the premises, including to the tenant or their property.
Garage Rental Disputes and Their Resolution
As with any business relationship, garage rent agreements can lead to various issues. This section outlines common problems and how they can be resolved through the law.
Traditional Lease Requirements Where the rental of the garage forms part of a larger agreement, such as the principal lease agreement for the premises, the landlord or seller may seek to rely on the provisions in these agreements to require the tenant to comply with the obligations on the owner or seller under the agreement regarding garage rental. However, the tenant is only obliged to comply with the provisions of the lease or agreement to which it is a party and is not required to ensure compliance with the principal or other agreements.
Where a lease does not provide for the rental of the garage, the tenant may enter into a separate garage rental agreement with the owner of the garage or obtain consent from the landlord for the use of the garage. The owner or seller of the garage may wish to make the rental of the garage, the garage rules and regulations and the payment of charges applicable to the garage, the obligations which exist in the principal agreement for the premises. The principle must comply with all the conditions for the use of the garage including, but not limited to, the use of the garage, its size in relation to the space allocated to the garage, the rules and regulations for the use of the garage and the obligations for the payment of charges emanating therefrom.
The owner or seller may choose not to regard the garage rental as a sublease or hold-over lease and include those provisions in the principal lease agreement to which the tenant is a party (i.e. in the event of a sublease of the premises). Once the rental of the garage is specifically dealt with in an agreement, the content of the principal agreement prescribing normal terms, such as payment of rent, municipal rates, water and electricity charges in accordance with the principles of legality, facilities that are to be provided, common areas, etc. would apply.
Prescriptive Period – Breaches of the Principal Agreement In Gauteng, the prescriptive period is 3 years for objects which are not certain or liquid. So if the tenant has not paid amounts due for the garage rental, it will take 3 years from the moment the amount was due for the landlord to prescribe the amount.
How do you prove your claim? Proving the existence of the rental agreement can be done by way of parol evidence especially where the rental of the garage is provided for in the principal lease. The finder of the facts will list relevant facts in evidence before the court or arbitration, determine the facts from the evidence and apply the facts to the relevant law to arrive at a decision or make an award.
Arbitration If the rental of the garage is expressly provided for in the principal agreement, the parties to the principal agreement would normally be bound by the provisions of that agreement including the dispute resolution provision and attempt to resolve the matter first in terms of the dispute resolution clause in the agreement before either party could refer the dispute to court.
Unlike the High Court, the CCMA is not affected by time limits set out in the Prescription Act however, the CCMA does have prescriptive periods. Presently, CEPPWAWU obo Henney & Others v SAPS (DPSA) & Others, the CCMA may order that the claim for the payment of arrear garage rents will also be subject to three year prescriptive period as they related to breach by the landlord of the principal lease ensuring that the claims relating to the rental of the garages and the payment of the rates and utilities accrued on common cause facts.
Things to Consider When Renting a Garage
Strategies to Ensure a Smooth Garage Rental Experience
For Landlords 1. Understand Local Laws: Make sure you are aware of and comply with any local laws that govern garage rental in your area. For example, in most places, you cannot rent out your garage for illegal purposes, such as for the construction of marijuana grow operations. 2. Draft a Clear Lease Agreement: Document the terms of the rental in an agreement that specifies the duration of the lease, the rental rate, what is included in the rent (such as utilities), responsibilities for maintenance and repair, rules regarding use of the garage, termination and renewal provisions, and other important details. 3. Stay In Touch: Check in occasionally with your tenant to ensure they are satisfied with the garage and to address any issues that may arise. It can be very useful to connect with the tenant on social media, especially if you have a private account. 4. Respect Privacy: While you do want to stay in touch with your tenant, also avoid being a nuisance. Do not ask your tenant too many questions about their business or why they are renting your garage. 5. Screen Carefully: By carefully screening your tenants, you can help ensure that they will pay you on time, take care of the property and limit your liability.
For Tenants 1. Document Everything: From the day you start renting the garage, begin documenting all communication with your landlord, including text messages, emails, and phone conversations. These records can help protect you in the case of any future disputes with your landlord. 2. Understand the Lease Terms: Read the lease carefully, and do not hesitate to ask your landlord to clarify any terms that you do not understand. If you disagree with any of the terms, try to negotiate with your landlord before signing the lease.
Garage Rental Resources
In conclusion, while being a landlord in Washington State can be potentially very lucrative, one must consider all of the risks and legalities that go along with it. Understanding the various legalities of being a landlord can help you make informed decisions that will ensure the safety and maintainability of your rental . As a summary, we’ve discussed the essentials of renting out your garage to other tenants, conducting background checks, writing up a garage rental contract, setting the right price, establishing payment systems, handling your tenant’s belongings and setting expectations, termination policies, and insurance issues. If you want to dive deeper into the subject of garage rental laws, the following resources are recommended: The Landlord-Tenant Act The Single Family Rental Inspection Program Landlord and Tenant Housing Resources Washington Real Estate Law New Washington Rent Control Laws