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In order to well-adjust rental rates for 2008 one should verify market conditions in one’s area

In order to well-adjust rental rates for 2008 one should verify market conditions in one’s area

This very same question keeps coming back at the beginning of each new year. By how much should I increase the rent for my tenants this coming year?

It is well known that the annual rate increases suggested by the Régie du logement do not truly reflect reality. How should one proceed then? Certain landlords refer to the increased cost of living published on a monthly basis by Statistics Canada. For 2007 we can speak of an average increase of some 2 %.

We believe that we should have confidence in the market because that is what happens in other fields of activity. A retailer would never risk losing his clientele by increasing his prices in an exaggerated way considering the competition, but, neither should he start losing money and jeopardize his business.

Owning a dwelling is a bit like operating a business. One has to respect the clientele, offer it a good service in order to earn its loyalty, and adjust our rates to the market so as to be able to maintain the dwelling in good condition. It is important, in the beginning, to take measures verifying average rents in one’s sector, by making inquiries in local newspapers and gather intelligence from acquaintances to compare rents for the same kind of apartments that are for rent.

One has to take the time necessary to analyze the situation for each and everyone of one’s dwellings before making a decision. When one has found the rental increase of one’s choice it is preferable to expedite your notice of rental increase as early as possible. That way your tenant will have a month’s time to answer whether he accepts the increase or whether he refuses it and plans to leave his apartment.

It is important to do it all in writing and to respect the rules that regulate modifications to a lease.

Do not hesitate to communicate with our legal service should you have any questions.

About the author

Martin A. Messier

Me Martin A. Messier a fait ses études au Collège Jean-de-Brébeuf avant de continuer ses études en droit à l'Université de Montréal. Il est membre du Barreau du Québec depuis 1992, et œuvre auprès des propriétaires de logements locatifs depuis 1993.

Il est entre autres président de l'Association des propriétaires du Québec, propriétaire d'une compagnie de gestion immobilière. Il est fréquemment invité comme conférencier dans le cadre de conférences et de séminaires juridiques et de gestion portant sur le louage immobilier.

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