Québec solidaire vows to limit rent increases in new buildings

Quebec solidaire (QS) pledged Sunday to introduce a bill countering “wild rent increases” in buildings that have been rented for less than five years.

Section F of leases currently allows landlords to raise prices at will, without tenants being able to challenge it.

“The mechanisms to prevent abusive rent increases are not working," said SQ spokesperson Andrés Fontecilla in a press release.

“Not only are rental vacancy rates continuing to decline at an alarming rate in the region, but rent increases are far exceeding the rates suggested by the housing tribunal," he added.

The latest Canada Mortgage and Housing Corporation report, released Friday, indicates that in many small municipalities in Quebec, vacancy rates are approaching 0 per cent.

Fontecilla called on housing minister Andrée Laforest to legislate on Section F.

“Is she defending the interests of Quebec families or the interests of large property owners?” he said.

The minister’s office did not immediately respond to requests for comment from The Canadian Press.

BETTING BLIND

According to Quebec’s landlord association (APQ), Section F is necessary to encourage the creation of new housing units, which are beginning to be in short supply in many regions of Quebec.

“The expenses of a new building are difficult to foresee,” said APQ president Martin Messier. “With more flexible marketing [...], we can allow ourselves a certain margin of error.”

He cited the instances when landlords forget to fill out this section and realized rents weren’t sufficient to maintain the building, or that “there is no one who wants to buy that building anymore” due to lack of profitability.

According to him, without this provision, the owner will “rent at the highest possible price” for fear of losing money.

— This report was first published in French by The Canadian Press on Feb. 20, 2022.