Legault wrong on rent increases
Papa Legault, who got it wrong last year when he said you could get an apartment for $500 a month, did another pratfall this week when he said there was a law limiting rental increases to 1.28%. That’s only a guideline and has no legal force whatsoever.
This is the man running a government that’s constantly cheaping out on building social housing and doesn’t see why they should. Do you wonder why?
MarcG 10:57 on 2022-02-24 Permalink
I assumed that if the tenant refuses the hike and it goes to court that the percentage calculated by the Regie will be used as a yardstick for the increase the landlord is trying to justify.
mare 11:55 on 2022-02-24 Permalink
It has legal force if you contest your rent increase. Then the landlord needs to start a procedure (and pay $100) to enforce the higher rent. After a few months (Years? They’re probably are behind because of Covid) you will get a hearing in front of a judge where the landlord *under oath* needs to present reasons for the rent increase, like increased insurance premiums, property taxes and maintenance costs. If you win that case, your rent stays like it was, if you lose your rent will be retroactively increased and you’re probably on the hook for the $100 as well.
These are your rights as a tenant, but very few people do this because they want to keep an amicable relationship with their landlords. So many of my friends pay steep rent increases every year and just complain but don’t actively do anything about this. A 10% rent increase every year means your rent will nearly double in 7 years.
I’m a landlord, one of my tenants contested their rent increase and although it didn’t make me very happy*, I didn’t treat them any different than before. Being a landlord it a business and compared to the realized gains on the stock market not even a very good one. I also still use those guidelines every year, and my tenants can ask for the calculations. The guidelines were more of a law in the past, but AFAIK are still used for arbitration.
they lost their case, we had done a lot of expensive maintenance to the building and the 3% increase was deemed to be justified ($10 or so, they paid $350 rent). I didn’t like it because it took a lot of time, effort and anxiety. I had to go to the Stade Olympic twice and wait in line (back then you had to file in person), prepare paperwork etc. Fortunately it only happened once. (I’m not a perfect landlord, I have increased rents between tenants. But the old rent was always on the lease and my tenants could have contested it.)
Joey 12:10 on 2022-02-24 Permalink
@mare interesting perspective. The gains compared to the markets aren’t the same but presumably as a landlord you can leverage way more money into your investment (you put, what 20% down, get a mortgage for the rest on the basis of the rental income and you wind up with returns on the entire value of the property, instead of just throwing your 20% down payment into the market). Agreed that many tenants will just swallow a steep increase to not jeopardize their day-to-day. I would also assume a lot of tenants are reluctant to enter a multi-year process that could end with them owing a big lump sum payment if they lose. Easier to pay an extra $20 a month than to be on the hook for the same monthly amount that has accumulated over a few years.
steph 13:35 on 2022-02-24 Permalink
it goes both ways.
My landlord wants to keep a good relation with me and accepts my contestation of rent increases yearly. It’s not worth HIS time to go fight it – I think I’m his only tenant that’s never been late in 10 years.
New lease rent increases are subject to the same calculation process. I think the calculation tool is worth looking at https://www.tal.gouv.qc.ca/fr/calcul-pour-la-fixation-de-loyer/outil-de-calcul over the single % recommendations.
Kate 15:30 on 2022-02-24 Permalink
steph, I am in a similar situation to yours.
MarcG 19:00 on 2022-02-24 Permalink
Don’t forget the low literacy rate in Quebec – I bet a lot of people have no clue what their rights are or that the Regie even exists and terrible landlords take advantage of their ignorance.