Humber/Ontario Real Estate Course 4 Exam Practice

Tenant Robert wishes to renew his lease but faces a significant rental increase. In this scenario, what is Robert's best option?

1. Accept the rental increase to secure the renewal

2. Negotiate with the landlord for a smaller increase

3. Seek legal advice to challenge the increase

4. Move out at the end of the current lease

5. Withhold rent to force negotiation

6. Sublet the property without landlord approval

The correct answer is: Negotiate with the landlord for a smaller increase

Negotiating with the landlord for a smaller increase is a strategic approach for Robert in this situation. Engaging in negotiation allows Robert to clearly express his concerns regarding the proposed rental increase and potentially uncover options that could be beneficial for both parties. This could involve discussing his history as a tenant, the current rental market conditions, and any financial hardships he might be facing due to the increase. This approach not only shows Robert's willingness to maintain a positive landlord-tenant relationship but also opens the door for dialogue and compromise. Negotiation can lead to a middle ground, which might not only result in a smaller increase but could also help in securing terms that make the renewal process more palatable for him. Other choices presented may not offer the same level of cooperation. Simply accepting the rental increase does not advocate for Robert’s interests, while seeking legal advice might complicate matters and foster conflict rather than resolution. Moving out removes his opportunity to continue negotiating, withholding rent could lead to legal repercussions, and subletting without approval introduces significant risk and potential breach of lease terms. Therefore, negotiation stands out as the most constructive and proactive approach for Robert.