[Moncton] Downtown Developments

[monctonwatch]

as it was explained to me the deep discounts on the new apartment units have nothing to do with the price being too high. They never intended on renting for those high rent $$. The building managers artificially inflate the renting price and deeply discount for two reasons, firstly it gives the renter a false sense of a bargain, but secondly and most importantly it allows the developer to raise rents well beyond the annual 3% rent cap if the market allows it. For example your rent is $2100 a month but you negotiated free parking and a $300 discount, you're paying $1800 a month but if a year from now markets change and the owner wants to raise your rent to $2000 they would just not renew the discount. Whereas if they would have simply set the rent at $1800 they would be maxed at the amount they could increase the rent by $54(3%)