A reduction in rent to induce a tenant
to accept a substandard apartment.
Substandard in this context does not refer
to violations of any statutory requirements
affecting tenancies, but rather the general
condition of the apartment regarding such
things as decorating, overall appearance,
and the lack of a promised amenity, e.g.,
pool. Provincial tenancy legislation may
limit or otherwise impact the use of
deficiency discounts.
Example
of Deficiency
Discount
A landlord
is having difficulty renting a two-bedroom
unit in his multiple-unit building. He is
renting it in an as is condition with no
decorating or other changes following the
last tenant’s departure. The asking price is
$1,400 per month but few prospective tenants
have shown any interest. Those who did
secured accommodation elsewhere given the
condition of this particular unit.
A
Renter approaches
the landlord with a suggestion. He
will rent the apartment for $1,250 per month
for two years and complete all decorating to
the landlord’s specifications, during the
first six months of occupancy. Smith agrees
to a deficiency discount of $150 per month
for the two-year tenancy period.
Looking to Buy or Sell Luxury
Real Estate In Toronto, North York, Thornhill,
Woodbridge, Vaughan, Richmond Hill, Aurora, King
City and beyond...visit LuxuryBroker.ca
Mortgages247.ca 2011 Apply Online without Blackouts Mortgages247.ca is designed to provide competent and
reliable information regarding the subject matter covered. However it is
provided, free of charge, with the understanding that the authors are not
engaged in rendering legal, financial or other professional advice. Law and
practice often vary from province and province and if legal or other expert
assistance is required, the services of a professional should be sought. The
authors specifically disclaim any liability that is incurred from the use or
application of the contents of this website.
