Quebec housing board estimates rent increase of 4 per cent in 2024

Quebec's housing tribunal (TAL) estimates landlords will raise the rent of unheated dwellings by 4 per cent in 2024 -- the highest single-year increase predicted by the board in over a decade.

The TAL, formerly called the Régie du logement du Quebec, issued its new rent calculation guidelines on Wednesday. Landlords aren't required to follow these guidelines, but tenants can refuse a rent increase deemed excessive or abusive. 

The TAL's findings are based on several factors, including electricity and gas costs, maintenance costs, management fees and capital expenditures, as outlined by the Consumer Price Index. 

As it did for unheated dwellings, the TAL calculates a rent increase of 4 per cent for dwellings that include electric (Hydro-Quebec) heating in the lease.

Meanwhile, the housing board suggests an increase of 3.3 per cent for dwellings with gas heating included, and 1.6 per cent for those with oil heating. 

The TAL predicts that gas and oil won't contribute as much to a landlord's overall expenses this year, down 7.3 and 10 per cent respectively. However, the share of other categories is increasing.

The TAL specifies that rent increases may vary depending on municipal taxes and renovations.

"The operating income and expenses for a building may justify a variation in rent distinct from this example of calculation, particularly if the building has undergone major work," the TAL guidelines state.

A RECORD-HIGH ESTIMATION

In a press release issued Wednesday, Quebec housing advocacy group RCLALQ called the TAL's recommendations "exorbitant."

"The average estimated rate of basic increase in the TAL for unheated housing, which represents the vast majority of housing in Quebec, reached a level never seen in more than 30 years," the organization wrote.

Last year, the estimated increase for leases that don't include heating was 2.3 per cent. It was the only time the TAL's rate for this category exceeded 2 per cent in the past 10 years.

"The RCLALQ reminds tenants that they have the right to refuse an abusive rent increase while maintaining their accommodation, and invites them to take the time to carefully examine their increase before responding to their landlord," the release continued, arguing that landlords often exceed the estimated rent increase by high margins. 

The group called on the Quebec government to issue an immediate rent freeze, as well as make it a requirement from property owners to stick to the TAL's guidelines. 

NOT ENOUGH, SAYS LANDLORDS' GROUP 

Meanwhile, the Quebec landlords' association (APQ), argued that the TAL's methods "don't take into account the reality of the market," i.e. inflation.

"Yes, the rates for the 2024 calculation purposes have increased for several expenditure items, but this also means that the bills received and paid in 2023 by homeowners have experienced an equally significant increase," reads a notice published by the organization on Wednesday.

The APQ predicted an "unprecedented wave" of rental increase refusals in 2024, claiming tenants are "encouraged to refuse without taking the time to analyze the situation or discuss with their landlord."  

CONTESTING A RENT HIKE

Quebec tenants have the right to refuse a rental increase, in writing, within 30 days.

If an agreement cannot be reached between the tenant and landlord, the lessor must ask the TAL to intervene. 

The TAL website features a calculation form for tenants and landlords to help determine appropriate rent increases based on factors like inflation and renovations.

The resulting calculations are not legally binding, but can provide a framework for determining reasonable rent hikes.