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Remainder of the new lease

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Reference no: EM133065645

In most rent-controlled markets, a new tenant pays the same rent-controlled amount as the previous tenant. In Ontario, a landlord may charge the new tenant market rent provided that the new rent becomes rent-controlled at the new level for the remainder of the new lease.

(a) Is the Ontario system more efficient? Why?

(b) What can go wrong in the Ontario system where there is a high turnover of tenants?

(c) What happens if the new market rent falls below the rent-controlled amount the previous tenant was paying?

Reference no: EM133065645

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