In Quebec, landlords and tenants are free to agree on a rent increase that both deem satisfactory. If they cannot reach an agreement, the Régie du logement offers them, on its Web site, the fixing of the rent method that it applies when it has to fix the rent increase. Based on that method, the Régie releases every year averages estimated accordingly with the Regulation respecting the criteria for the fixing of rent.
A QUICK ESTIMATION
To estimate quickly the rent increase, the energy source used for heating must be considered and also the major repairs and improvements made by the landlord in the dwelling or the building in 2006.
1 - Operating costs
| The first table presents the basic increases when there is no variation of municipal and school taxes and no major improvements. |
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| If there is a tax increase, 0.7% must be added for each tax increase of 5 %. For instance, for a dwelling heated by electricity when taxes have increased by 5 %, the average estimation is of 1.8 % (1.1 % + 0.7 %). If the tax increase is of 10 %, then the average estimation is of 2.5 % (1.1 % + 1.4 %). A tax decrease will have the opposite effect. |
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| The Régie reminds that each fixing of the rent case is treated specifically. There may be a gap between those average estimations and the result of a calculation made for a particular building due to the degree of importance of the operating costs from one building to another. |
2 - ADDITIONAL INCREASE FOR MAJOR REPAIRS AND IMPROVEMENTS
Adjustment rate applied to major repairs and improvements : 4,2 %
It means that each $1000 spent for major repairs and improvements brings an additional increase of $3.50 per month and that increase has to be divided by the number of dwellings that did benefit from the expense.
| THIS IS AN EXAMPLE Following is an evaluation of a rent increase for a dwelling which rent is of $600 per month. The dwelling is heated by the tenant and the taxes of the building have increased by 5%. The increase due to the operating costs is of : 0.8 % + 0.7 % = 1.5 % x 600 $ = $9.00 Also, in 2006, the landlord made some major repairs and improvements by renovating the kitchen of that dwelling to the amount of $3000. We must add : 3 x $3.50 = $10.50 The total increase : $9.00 + $10.50 = $19.50, rounded off to the nearest dollar : $20.00 |
FOR A SPECIFIC CALCULATION FOR THE BUILDING
With a few clicks, the electronic version of the form Calculation 2007 / How to agree on the rent allows a more precise calculation of the rent increase. It is located on the Régie’s Web site at http://www.rdl.gouv.qc.ca. The paper version of that form will also be available as of February 7.
To reach the Régie du logement :
Montreal, Laval and Longueuil areas
(514) 873-2245
Other areas
1 800 683-2245