A landlord offers the tenant a discount for paying rent on or before the due date. Under the Residential Tenancies Act, 2006, how large can that discount be without affecting the lawful rent?
Correct Answer
B) Up to 2% of the rent
Section 111(2) says the lawful rent is not affected by a discount of up to 2% of the rent for paying on or before the due date, if the discount meets the prescribed condition, which under O. Reg. 516/06, s. 10(0.1) is that it is provided for in a written or oral agreement. A larger prompt-payment discount changes how lawful rent is calculated (O. Reg. 516/06, s. 12(3)).
Why This Is the Correct Answer
Section 111(2) protects the lawful rent for a prompt-payment discount of up to 2%.
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Previous Question
A landlord client wants to collect a $150 non-refundable key fee when the lease is signed. A replacement fob for the building costs $60. Under the Residential Tenancies Act, 2006 and O. Reg. 516/06, what may the landlord collect?
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A landlord rents her condominium unit month to month. She signs an agreement to sell it to a buyer who in good faith intends to live in it. Under the Residential Tenancies Act, 2006, what notice and compensation apply if the tenancy is ended for the buyer?