As the real estate market shifts, more tenants are reaching out to their landlords asking for rent reductions. For many landlords—especially first-time investors—this can feel stressful or confusing. The good news? In Ontario, landlords have clear options and full control over whether they choose to lower the rent.

At The Fisher Group, we work with landlords and investors across Oakville, Burlington, Mississauga, and the GTA every day. From lease-ups to tenant management to selling tenanted properties, we frequently help clients navigate tricky rental conversations with confidence.

Here’s a clear breakdown of what you can do when a tenant asks to lower the rent — and how to protect your investment.

1. You Can Politely Decline — And This Is 100% Allowed

In Ontario, rent reductions are not mandatory unless ordered by the Landlord and Tenant Board in rare cases. A tenant cannot force a landlord to lower the rent.

If your current rent is fair for the market, a simple, polite decline is perfectly acceptable.
Many landlords choose this option, especially when:

• The rent is already below market

• The tenant has been paying reliably

• Operating costs (taxes, interest, maintenance) are rising

A respectful no keeps expectations clear and protects your lawful rent moving forward.

2. Offer a Temporary Rent Reduction (3–6 Months)

If you want to maintain a positive relationship with a good tenant, you can offer a short-term discount instead of lowering the rent permanently.

This is especially helpful if:

• The tenant has had a temporary change in income

• You want to avoid vacancy and turnover costs

• You prefer stability over finding a new tenant

Important: Put the timeline in writing.
A clear end date protects your legal rent from resetting.

3. Offer Incentives Instead of Lowering Rent

Many landlords prefer offering something small rather than changing rent. This keeps the lawful rent intact while still supporting the tenant.

Examples:

• One-time rent credit

• Flexible payment dates

• Professional cleaning

• Minor upgrades (new blinds, paint, lighting)

• Allowing early move-in or delayed move-out

These gestures build goodwill without affecting long-term rental income.

4. Reassess Market Rent in Your Area

The rental market is evolving. Some areas of the GTA are seeing stabilizing or slightly dropping rents, while Oakville and Burlington remain relatively strong.

If your unit is priced higher than current market comparables, adjusting the rent slightly might help you:

• Retain a great long-term tenant

• Avoid vacancy

• Reduce turnover costs (typically $1,500–$3,000+)

This is where our team can help — we review active and leased comparables to determine whether your rent is still competitive.

5. Agree to a Permanent Rent Reduction (Least Recommended)

Some landlords choose to lock in a lower rent if:

• The tenant is exceptional

• The market has softened

• They value stability over maximizing rent

If you decide to do this:

• Put it in writing

• Understand it becomes your new lawful rent

• Future increases will follow Ontario’s rent increase guideline

Once lowered, you cannot raise rent beyond the guideline unless your property is rent-control exempt or you apply for an AGI (Above Guideline Increase).

Bonus: If the Tenant Later Can’t Pay Rent

Asking for a rent reduction is not grounds for eviction.
But if the tenant eventually falls behind, you can follow normal non-payment procedure:

1. Serve N4 Notice

2. Apply for L1 if payment is not received

These steps are separate from the request to lower rent.

How We Support Landlords at The Fisher Group

Our landlord and investor clients trust us because we bring clarity, strategy, and hands-on help. Whether you’re leasing, renewing, selling a tenanted property, or navigating tenant issues, we ensure your investment is protected.

We regularly assist with:

• Rental pricing strategy

• Lease-up and tenant placement

• Market rent analysis

• Difficult tenant conversations

• Selling homes with tenants in place

• Maximizing ROI through smart improvements

As Oakville’s #2 real estate team and #41 nationwide with Royal LePage, we’ve helped countless investors achieve strong results, even in challenging markets.

Thinking About Renting or Selling? We Can Help.

Whether you're unsure how to respond to your tenant, considering a rent adjustment, or wondering whether now is a good time to sell your investment property, we're here to guide you.

📩 Contact The Fisher Group for expert landlord & investor support
647.598.8488 | [email protected]
thefishergroup.ca