Sometimes the tenant may feel it is better to stay in the property even if it is partially destroyed. This should be negotiated with the property manager/owner. Health and safety issues should be considered when making this decision.
Paying rent
Until a notice is given, the tenant is responsible for paying the rent in full (even if they have been evacuated from the property).
Rent reductions
The rent may be reduced if the property is damaged or if some of the facilities (e.g. car park, pool, laundry) are unavailable. This is determined on a case-by-case basis.
Rent reductions may occur when:
- services, facilities or goods to be provided under the agreement are no longer available (not because of a breach)
- the amenity or standard of the property decreases substantially
The decrease can be negotiated and should be put in writing. If the tenant and the property manager/owner agreed to decrease the rent, or if the tenant applied to the tribunal and the tribunal made an order to decrease the rent, and the rent later reverts to the amount payable before the decrease, this is not considered a rent increase within the meaning of the limit within the 12-month period.
If the rent in a rooming accommodation agreement covers both accommodation and a service, the 12-month period only applies to rent increases.
Also, if the residential premises are a movable dwelling for a long tenancy, the 12-month period applies whether the last rent increase was for the dwelling, its site, or both.
The tenant may want to leave the property and return after the damage has been repaired. Any agreement to waive the rent during that period should be put in writing.
The property manager/owner and tenant can decide to terminate the agreement and sign a new agreement after repairs are completed. The terms of the new agreement would need to be negotiated and would not necessarily be the same as the old agreement, including the rent amount.
