Rent Deferral Agreements in Alberta: What You Need to Know
Rent deferral agreements have become a hot topic in Alberta amid the ongoing COVID-19 pandemic. Many landlords and tenants are facing financial hardships, and a rent deferral agreement may provide some much-needed relief. In this article, we will explore what rent deferral agreements are, how they work, and what you need to know as a landlord or tenant in Alberta.
What is a Rent Deferral Agreement?
A rent deferral agreement is a written agreement between a landlord and a tenant that allows the tenant to defer their rent payments for a certain period of time. The agreement outlines the terms of the deferral, such as the amount of rent to be deferred, the length of the deferral period, and any repayment terms. The tenant is still responsible for paying the deferred rent at a later date, but the agreement provides temporary relief from immediate financial obligations.
How Do Rent Deferral Agreements Work?
Rent deferral agreements can only be established through mutual agreement between the landlord and tenant. The agreement should be in writing and signed by both parties. It is important to note that a rent deferral agreement is not the same as rent forgiveness or cancellation. The tenant is still responsible for paying the deferred rent at a later date, unless otherwise specified in the agreement.
As a landlord, it is important to consider the tenant`s financial situation when negotiating a rent deferral agreement. If the tenant is unable to pay the deferred rent at the end of the deferral period, it may be difficult to collect the outstanding rent. Landlords may want to consider alternative options, such as rent reduction or payment plans.
What You Need to Know as a Landlord or Tenant in Alberta
In Alberta, the Residential Tenancies Act (RTA) governs the relationship between landlords and tenants. The RTA does not specifically address rent deferral agreements, but it does require that all agreements between landlords and tenants be in writing. Any rent deferral agreement should be in compliance with the RTA and any applicable legislation.
As a landlord or tenant in Alberta, it is important to communicate openly and honestly with each other. Both parties should clearly state their expectations, timelines, and any other relevant factors before entering into a rent deferral agreement. It is also recommended that both parties seek legal advice before signing any agreement.
Rent deferral agreements can provide temporary relief for both landlords and tenants facing financial difficulties. However, it is important to approach these agreements with caution and ensure that they are in compliance with the Residential Tenancies Act and any applicable legislation. As a landlord or tenant in Alberta, it is important to openly communicate and seek legal advice before entering into any agreement.