Landlord Credit Bureau

Reasons to Withhold Rent

What are the Allowable Reasons to Withhold Rent?

There may be exceptions and/or different rules for each Province/State, learn the tenancy laws that include allowable reasons to withhold rent in your jurisdiction. Google …tenancy laws and Province or State you reside in.

A tenant must pay all the rent when it is due. However, there are five situations when a tenant may deduct money from the rent: Check your jurisdiction for confirmation.

  1. The tenant has an arbitrator’s decision allowing the deduction.
  2. The landlord illegally increases the rent.
  3. The landlord has overcharged for a security or pet damage deposit
  • A security deposit can be no more than half of the first month’s rent
  • A pet damage deposit must be no more than half of one month’s rent, regardless of the number of pets allowed.

4.The landlord refuses the tenant’s written request for reimbursement of emergency repairs.
5.The tenant has the landlord’s written permission allowing a rent reduction

If a tenant withholds rent for any other reason, the landlord may serve the tenant

with a 10 Day Notice to End Tenancy for Unpaid Rent.

Some Landlords and tenants are not fully familiar with the tenancy laws in their jurisdiction and will often be in noncompliance of the tenancy laws.

Landlords who report rent payments, is a benefit to tenants who pay rent on time and abide by the tenancy or lease agreement. On time rent payments reported to the Landlord Credit Bureau give tenants an advantage over other rental applicants as they can show a good rent history. Their Consumer Credit report will reflect on time rent payments.

When a landlord reports rent payments for tenants, it is an incentive to pay rent on time and to not leave owing a debt and/or damage rental property.

High risk or bad tenants who do not pay rent are held to account where rent payments are reported to the Landlord Credit Bureau and to Equifax. It will become difficult to rent where a bad renter has been identified as high risk for renting.

Sometimes tenants withhold rent payment for what they believe are legitimate reasons, and often what they believe, is not factual. This can lead to rent reports on tenants reflecting negatively on tenant history and consumer credit history.

In circumstances where there is a disagreement between landlord and tenant regards rent payments for repairs, or any other perceived deficiency, it is important to know landlord and tenant responsibilities and rights. Refer to www.tenantsinfo.com , but also research the tenancy laws in your area, and/or contact Experts in your area.