La Tour Saint-Jean, a 12-storey building that stands in the heart of Quebec City, recently changed hands and the new masters of the place have great ambitions for the building. The makeover, however, comes with a hefty bill for tenants, who are offered rent increases sometimes exceeding $250 per month.
Modern swimming pool, brand new sauna, state-of-the-art training room, high-speed Internet provided, roof terrace, renovation of common areas: the Tour Saint-Jean and its 164 apartments are preparing to undergo a major construction project under the impetus of the new owner, the Société immobilière Bélanger, which acquired the premises last December.
The tenants are offered significant rent increases in return for the improvements promised in the building.
“It went from $965 to $1,195 per month,” or a 24% increase, explains Claudette Allard, a resident of the building erected in the Faubourg Saint-Jean-Baptiste. According to the documents consulted by The dutythe new owner offered the tenant to renew her lease for a period of 37 months and granted her a monthly discount of $835 from 1er March to May 31.
“I said to myself that a $230 raise for three years didn’t make sense. I refused,” says M.me Allard.
A week later, the administration came back with a new proposal: a 12-month lease renewal and a $49 rent increase. “I accepted, but I should not have, regrets Mme Allard. Normally, it should be a $20 or $25 increase per month. At least I will have peace. »
Another tenant, Danielle Parent, told the Homework having also received a renewal notice that increased her three and a half from $1,260 to nearly $1,500 until 2024.
“He offered to pay for my move and to offer me the equivalent of four months’ rent if I left,” explains this new retiree. I refused to leave and refused the raise. I don’t see why I would pay for expenses that he has not yet incurred. »
She and the new administration eventually agreed to a $35 per month hike for a 12-month lease. Managers, says Mme Parent, however, warned her that next year, the increase would be substantial since the renovations will be completed and they will have the bills in hand.
Owner of the Saint-Jean tobacconist and tenant of the tower of the same name, Shengying Zhou has also received a notice of renewal providing for an increase of $270 per month. The increase, she said, would be $90 per month for the duration of the work, then would increase to $270 per month once the work was completed. She also intends to refuse it.
The right to refuse
The new owner of the Tour Saint-Jean, François Bélanger, is at the head of the Société immobilière Bélanger, which claims more than 3,000 housing units, mainly located in the capital and in Montreal. He declined to comment on the case.
Quebec law authorizes an owner like Mr. Bélanger to request increases of this order. However, the legislation also allows tenants to refuse them without suffering any prejudice.
“A tenant cannot be evicted because he refuses an increase, recalls Mand Chantale Bouchard, lawyer specializing in real estate litigation. As soon as there are additions of services or modifications made to an ongoing lease, tenants are free to oppose them. »
The owners must then come to an amicable agreement with the residents or bring the case before the Tribunal administratif du logement (TAL). Owners who take this second route must present to the court the supporting documents for all the costs which, in their opinion, justify the requested increase.
“It is so supervised that the cases are not even heard by a judge, but by a clerk, underlines Mand Bouchard. There is no subjective leeway in setting a rent. »
A tenant cannot be evicted for refusing a raise. As soon as there are additions of services or modifications made to an ongoing lease, tenants are free to oppose them.
The Bureau d’animation et d’information logement du Québec métropolitain (BAIL) criticizes the methods used by the Société immobilière Bélanger.
“He puts a lot of emphasis on the improvements to come to ask for a significant increase, deplores his coordinator, Nicole Dionne. How can tenants assess the value of work when it has not yet been completed? If the owner is content to put chairs around the pool, the tenants are no more advanced. »
Nor can an owner legitimize an increase on the basis of unfinished work. “Increases are always justified by previous work, that is to say work already carried out”, specifies Mand Bouchard.
The TAL estimates that in 2022, landlords can charge tenants 2% of spending on improvements in common areas. The amount must then be divided by the number of units located in the building.
According to the calculation of Homework, in a tower with 164 apartments, a landlord would have to inject $1.64 million in renovations to justify an average monthly increase of $200 per unit under the TAL grid. The landlord can also factor in other rising costs, such as taxes, insurance, maintenance and management fees, to raise rents.
Unrecognized rights
The duty also spoke to a tenant of the Tour Saint-Jean who voluntarily accepted an increase of $150 per month. “I thought $150 was justified because of all the improvements promised,” he said. Accustomed to Montreal rates, this tenant considers that his rent is a bargain for living in downtown Quebec.
For others, like Linda Perron, the submitted offer does not, however, “make sense”.
“I live with my roommate in a four and a half and it’s $1,185 a month right now,” says Ms.me Peron. The expected increase is $210. I think that is unacceptable. »
The new administration offered them a 36-month lease with a refund of $2,100. Nicole Dionne, from BAIL, did the math: under these conditions, the effective increase, per month, amounts to $150 at the end of the three years.
“It’s as if he was doing everything to mix up the tenants,” laments the coordinator of the BAIL. Less than 1% of rents are set by the TAL each year in Quebec. It shows how tenants don’t know their rights. »