Rent-setting for 2022

Article locked Published on by Martin A. Messier

Topic(s): Word of the editor

Rent-setting for 2022

+1.28% according to the Administrative Housing Tribunal (TAL) for an unheated rental dwelling with an inflation rate at 3.4%.
For the year 2022, the Administrative Housing Tribunal (TAL) has issued a press release reporting the estimated average increases for the different types of housing.

The estimated average valuation for an unheated dwelling that would not have been the subject of significant expenditure variations, particularly in terms of major works or taxes, would be, according to the Administrative Housing Tribunal (TAL), to the amount of 1.28%.

This situation highlights even more so, this year, the obsolescence of the method used by the TAL to set the price of rents in Québec.

This outdated method therefore causes significant harm to building owners who wish to maintain the quality of life inside their rental building by carrying out adequate work.

This situation is untenable for many, in a context where owners are under pressure to do work that is increasingly important given the aging of Québec’s real-estate stock .

We would like to draw your attention to the fact that an expense of a $1,000 for a building owner earns him only $1.67 in rent increase.

In such circumstances, the owner who has borrowed $100,000 for his building with the current interest rate of 3.09% (RBC mortgage rate as of 24-01-2022) would have to make payments of $477.88 monthly. The total increase would be $167.00 per month.

This discrepancy makes it impossible for him to make the expense profitable.

Even if the owner did not have to borrow, the amortization period would still be 50 years.

In the circumstances, it is urgent that the government’s attention be focused on this method and that the owners finally get out of the blind spot in which they seem to have been for too long!

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