Rent Reductions

If your landlord's property taxes decrease by more than 2.49%, you’re entitled to an automatic rent reduction under Section 131 of the Residential Tenancies Act (RTA). The City of Cornwall will mail you a notice by December 15th to let you know about the reduction. You do not need your landlord's permission to reduce your rent. However, we recommend you discuss the change with them before it takes effect on December 31st.

Eligible properties

Rent can be automatically reduced for:

• Apartment buildings
• Duplexes and detached houses
• For-profit cooperatives that are rented
• Mobile home parks and land lease communities
• Most private care homes
• Rented condominiums
• Rented townhouses
• Rooming houses, boarding and lodging homes

Rent cannot be automatically reduced for:

• Commercial, industrial or recreational properties
• Non-profit housing cooperatives
• Non-profit housing projects
• Nursing homes
• Public housing
• Residential buildings where property taxes increase or do not change
• Some housing owned by educational institutions
• Vacation homes

How your rent reduction is calculated

If your landlord's property taxes drop by more than 2.49%, your rent is automatically reduced. The reduction is a percentage of your monthly rent, calculated in two steps:

1. Find the property tax decrease percentage.
2. Multiply that percentage by a set rate from the law:

• • 20% for most apartment buildings.
  • 15% for houses, condos, and newer apartments.

Example for a tenant in an apartment building:

• Monthly Rent: $800.00
• Property Tax Decrease: 8.5% (calculated from the municipal tax notices)

Calculation: 

• Rent Reduction % = Property Tax Decrease % × Prescribed Rate (e.g., 8.5% × 20% = 1.7%)
• Rent Reduction Amount = Monthly Rent × Rent Reduction % (e.g., $800.00 × 1.7% = $13.60)
• New Monthly Rent = Old Rent − Reduction Amount (e.g., $800.00 − $13.60 = $786.40)

Important Note: The rent reduction percentage (1.7% in this example) is always smaller than the property tax decrease percentage (8.5%). You must apply the 15% or 20% rate to calculate the correct amount.

Landlord and Tenant Board

If you believe the rent reduction amount on the official notice is wrong, you or your landlord can apply to change it. For more information or to apply, contact the Landlord and Tenant Board directly.

How it works:

• The reduction still happens: The tenant can pay the reduced rent while the LTB reviews the case.
• The deadline: You must apply to the LTB by March 31st of the year after the rent reduction took effect.
• Final ruling: The LTB's decision will be backdated to December 31st. Whoever underpaid will have to repay the difference to the other party.
• Small tax decreases: If the property tax decrease was 2.49% or less, we do not send a notice. In this case, tenants can still apply directly to the LTB to request a reduction.