The Baillus Chronicles: RENT SETTING FOR 2019 9 essential things to know

Article locked Published on by Me Jean-Olivier Reed

Topic(s): Legal

Note aux lecteurs : Ces articles sont des résumés de décisions rendues dans les affaires citées. Veuillez noter qu'il ne s'agit pas d'une revue de la jurisprudence et que d'autres décisions peuvent être rendues par la suite ou être différentes et changer l'état du droit. C'est également le cas si les faits ne sont pas les mêmes que ceux présentés dans l'affaire mentionnée.

The Baillus Chronicles: RENT SETTING FOR 2019 9 essential things to know

With the general increase in the cost of living and the tax increases of the various levels of government, the profit margin of the owners is becoming less and less important.

In this context, the increase in rent is an essential mechanism that the owner should know in its smallest details.

Here are some tips for your 2019 increase.

1) The reasons that allow for a substantial increase in rent are: municipal taxes, school taxes, insurance and major works.

2) If you have just bought your building, the expenses for the year 2018 of the former owner are valid for the Régie du logement. Do not hesitate to ask him about these.

3) If you have a drop in municipal or school taxes, do the calculation online to check if the result does not give a NEGATIVE amount. Oh yes! The Régie du logement could order a reduction in rent. Moreover, several school boards have lowered their tax bill this year, so we insist that the owners do the math to avoid a bad surprise at the Régie du logement. Unfortunately, lower taxes can cancel important major work invoices.

4) Good news for these tax cuts: it is the privilege of the landlord to request a setting of the rent from the Régie du logement. So, despite a virtually negative result, nothing prevents you from asking for an increase in rent to your tenants, knowing that you should not submit a request to the Régie du logement to set the rent if the tenant refuses. You must negotiate.

5) If you are an owner-occupant, you must evaluate the value of your dwelling at market price while maintaining a reasonable amount compared to other units in the building. The lawyers of the APQ can help you in doing this.

6) The bailiff is not the appropriate method of service for this notice. Start by using the registered mail and make sure you have proof of receipt.

7) You can negotiate with the tenants all throughout the process and even until the day of the rent-setting hearing. Do not miss a deadline because you think the tenant will accept the last offer. Do not take any chances. It may be a tenant's tactic to eliminate the delay and avoid rent increases.

8) You have the right to set the conditions of use of the backyard, parking lots, common areas. Do not hesitate to regulate a priori to avoid conflicts a posteriori.

9) Not all leases start on July 1, 2019. So, which grid of the Régie du logement should be used for leases on other dates? Here is the answer : the Régie du logement's calculation grid for the year 2018 must be used for leases that begin until April 2019. The 2019 grid that will be available at the end of January 2019 must be used as of May 2019.

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