For a building owner, providing financial relief to their tenants is not as easy as it seems under the very rules of the Administrative Housing Tribunal (TAL).
This was noted at the end of January by Olivier Dulude, owner of a duplex in the Rosemont district for two years with his spouse. The couple occupies the upper floor, while tenants occupy the lower one. “Usually, the increase in rent is around $15 or $20 per year, it follows inflation,” he explains in an interview. But in 2022, he had work done, the cost of which “exceeded $50,000” on the foundations of his house.
When he wanted to calculate the expected rent increase for 2023 on the TAL website (formerly the Régie du logement), he was amazed to find that it would be more than $200 this year.
“We thought it was a lot, so we wanted to spread it over two years,” says Mr. Dulude, who hoped to give his tenants financial respite. Calling TAL to check the feasibility of his idea, he was told that such a decision was at his own risk. If his tenants decide to contest the next increase, in 2024, Mr. Dulude would lose the possibility of increasing the rent, since it would no longer comply with the calculation method.
The TAL explained to him that the value of the work plays a role in the increase in the rent, and that work carried out in 2022 could not be taken into account for an increase in 2024. criteria for setting rent, expenses [engagées] by the lessor during the reference year in question”, explains by email the head of media relations for the TAL, Denis Miron.
He specifies that in the event of an impasse with his tenant, the owner can “seize the Court with a request for fixing of the rent. But this fixing will therefore be determined by “the expenses [engagées] » by the owner during the year concerned. In short, the work carried out in 2022 cannot be considered for setting the rent in 2024.
“These are good amounts, which I will not be able to increase any further,” laments Olivier Dulude. “I wanted to be flexible. I find it flat. »
” Mutual trust “
After a conversation with his tenants and careful consideration, he decided to spread the rent increase over two years, as he had originally planned.
“In theory, next year, our tenant could refuse the increase and we would lose our right to increase, he notes. We explained everything to the tenants and we will proceed on the basis of mutual trust and good neighbourliness. »
He continues to believe that offering the possibility to landlords who wish to spread the increase in rent over several years would provide respite to tenants, in an inflationary context. “The answer given to us by the TAL is a shame and does not benefit anyone,” he believes.
In the past year, housing in the Montreal area has been subject to a price spike: the average rent for a two-bedroom apartment has increased by 5.4% in one year. It is now above $1000. Several Montreal tenants expect a significant increase in their rent in 2023, in particular because of inflation and the increase in property and school taxes, and insurance costs.