Record rent benchmark increase alarms renters’ groups
Record rent increase benchmark alarms renters’ groups
Ruby Pratka, Local Journalism Initiative reporter
editor@qctonline.com
At the Saint-Roch offices of the Bureau d’animation et d’information logement de Québec métropolitaine (BAIL-Québec), the phones haven’t stopped ringing for days. The record rent increase benchmark of 5.9 per cent announced by the province’s housing tribunal (Tribunal administratif du logement; TAL) has many renters in a panic as they brace for lease renewal season.
In Quebec, private residential landlords can increase rent annually by as much as they see fit, explained lawyer Richard Goldman of Éducaloi, a legal information nonprofit. Renters have the choice of accepting the increase and renewing their lease, moving out, or refusing the increase. If the tenant refuses the increase, they can either try to negotiate a smaller increase directly with the landlord, or go before the TAL and have a judge set a (non-negotiable) increase. Although the increases determined by the TAL can vary widely depending on the age of a building, whether it has been recently renovated or needs work, the property owner’s tax liability and whether utilities are included, the TAL uses the benchmark as a guideline to determine what a fair increase is. Some landlords also use the benchmark to calculate increases they propose to renters.
“Rent is made up of different components – maintenance, insurance, gas, electricity, net revenue [for the property owner], all of those make up a percentage [of the increase],” explained Jonathan Carmichael, an information officer at BAIL-Québec and a spokesperson for the provincewide Régroupement des comités du logement et des associations de locataires du Québec (RCLALQ; Quebec association of housing committees and renters’ associations). Macroeconomic indicators and housing tribunal jurisprudence also play a role in the calculations. The benchmark “gives [landlords and renters] an idea of what the TAL might decide, if your case goes before the TAL.” Last year’s benchmark was four per cent. Carmichael said the 5.9 per cent benchmark is “the highest we’ve seen in years. … Twenty years ago, it was more like one per cent.”
Carmichael said the organization had been getting “lots of calls” from worried renters. “Most people’s salaries have not gone up that much, and social assistance has not gone up by that much. People have been stretching the rubber band as much as they can for a long time now. The rise of the cost of living is also high, and landlords have been profiting from it.”
Real estate lawyer Martin Messier is president of the Association des propriétaires du Québec (APQ), the residential landlords’ professional association. He refutes Carmichael’s accusation that landlords are taking advantage of the situation to line their pockets. “We know that people are in a difficult situation, and it is also hard for a lot of our property owners, who are dealing with mortgages that have nearly doubled,” he said. “It’s not true that [the increase] is going in our pockets – it’s based on expenses.” He noted that fluctuating interest rates and the rising cost of renovations have made rent increases inevitable. “Every cost involved in maintaining a building has gone up, and we need to be able to maintain the building.”
The RCLALQ, the Quebec Liberal Party and Québec Solidaire have called for a rent freeze. Messier said that was untenable, and that direct aid to the most vulnerable renters might be a better approach as inflation continues to bite and economic uncertainty looms. “A rent freeze would make sense, but only if they banned tax increases, hydro rate increases and price increases for contractors,” he said. “If people’s income does not go up, we’re all stuck. We want renters to be happy and to be in a position to pay.”
Carmichael advised anyone who receives a rent increase that they are unable or unwilling to pay to contact their local housing committee for free advice. A provincewide directory of housing committees can be found at rclalq.qc.ca/en/housing-committee.
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