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Rent increase 2016 in Quebec

Published on by Y. Allami
Filed under: Landlords, Tenants

When renewing a lease, a landlord has the right to request an increase in monthly rent for the upcoming year. However, are all increases allowed? Not really. Once the tenant receives the notification of increase from a landlord, the tenant has one month to accept or decline the increase.

The Régie du Logement published today its tool (only available in French) which allows one to calculate the allowed amount of rent increase (a percentage) for the year 2016 in Quebec. Many influences factor in to determine the price of rent (e.g., repairs, inflation, municipal taxes). Therefore, if a tenant finds that the increase is overestimated, it is important to use the form provided by the Régie, and complete it in collaboration with the landlord, in order to reach a reasonable agreement.

Technically, a tenant can initially refuse any increase. However, the landlord would then be in his right to enforce an increase, thanks to the services offered by the Régie du Logement. Then, a tenant will nonetheless have to pay the increase (plus fees and accumulated interests). Therefore, a tenant has nothing to gain by blindly refusing all increases. The preferred solution would be for the tenant and landlord to reach an agreement.

Considering the burden of going through the Régie to enforce a rent increase, many landlords choose an increase that is permitted by law. Therefore, it would be safe to assume that a landlord will have calculated the appropriate percentage of increase.

Before jumping to bad conclusions by contesting all forms of rent increases, make sure that your decision is based on reasonable motives.

To remember:

  • A landlord has the right to increase the monthly rent when there is a lease renewal.
  • A tenant cannot force a landlord to maintain the same monthly rent, once a lease expires.
  • If a tenant and landlord do not agree on the amount of increase, the form provided by the Régie du Logement will allow you to find the exact amount permitted by law.

And you, how did you reach an agreement between tenant and landlord ?