Duke Tower Kitchener | 39 fl | completed

[ijmorlan]

I could see if affecting rent prices if none-students start renting student units, but would anyone actually do that? As for regular rental units, the market is still tight. But if incomes are down, then I could see market price reductions, but it would be given as a subsidy of sorts. That way they could go back up to regular rates once things get bette.

I think that's exactly the most likely scenario. A landlord would likely much rather offer first four months free than discount the rent by 25% (which would effectively be permanent).

The rules for discounts are in the Residential Tenancies Act:

https://www.ontario.ca/laws/statute/06r17#BK168

A 2% discount for prompt payment can be granted. Additionally, up to 3 months of rent-free periods in a 12-month period may be granted. These discounts do not affect the lawful rent, and therefore the increase in rent at the end of the period is enforceable.

A 25% discount would result in the “lawful rent” being the discounted amount, meaning that the allowed rent increase at the end of the period would only be the prescribed guideline increase. Well, maybe one could argue that one was giving a 1/4-month rent free period in every month of the year, but I wouldn’t bet on success.

So a landlord could give the first 3 months free (or a different 3 months, I think), and I believe you are correct that a “25% discount” would in fact be permanent.