Thank you for your question. I will try to assist you in answering it today but please feel free to ask as many follow up questions as you like until you are 100% satisfied.
This is a bit of a grey area as the CPA does not prescribe what would be a fair and reasonable penalty. It simply gives guidelines of what would be considered to establish if a penalty is fair and reasonable.
These factors include the original contract term, the remaining balance of the contract term, the ease or difficulty of getting a new tenant on the same terms and conditions, period of notice given etc.
Your contention that the penalties must be proportional to the remainder of the lease is therefore correct.
I am not sure what amounts we are talking about here but he will most likely not be able to successfully claim more than one extra month's rental from you and most attorneys would advise him not to litigate for a small amount as it would cost him more in legal costs than what he would receive if successful.
You can also be pro-active and refer the dispute regarding penalty claimed by the landlord to the Rental Housing Tribunal in your area. They will adjudicate on this matter free of charge and give you some peace of mind. To get their contact details you can simply google them and then phone to find out if they have a office near you. Their website also set out the procedure to follow for making a referral.
I hope this answered your question.
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