If you are a tenant, you have probably received a notice of rent increase from your landlord, or you will soon receive one.
Renewal of lease and rent increase are practices that are well regulated by law. Therefore, your landlord cannot increase your rent as he pleases, at any time.
As a tenant, if you face a significant rent increase, it can be difficult to determine whether the increase is in line with the cost of living or whether it is an abusive rent increase.
How to differentiate between the two? A tenant's rent increase is based on the rental calculation grid of the Administrative Housing Tribunal (TAL).
JuriGo explains everything you need to know about rent increases and what to do in case of an abusive increase!
What should the landlord do if he wants to increase the rent amount?
If the landlord wants to modify the lease, for example to increase your rent, he must absolutely provide you with a written notice within a certain timeframe. The timeframe for sending the notice will vary depending on the length of the lease:
| Lease duration | Notice period |
|---|---|
| Lease of 12 months or more | 3 to 6 months before the end of the lease |
| Lease of less than 12 months | 1 to 2 months before the end of the lease |
| Lease with no fixed end date | 1 to 2 months before the requested change to the lease |
For example, if you have a 12-month lease that ends on June 30, 2023, your landlord must notify you of the rent increase in writing between January 1st and March 31, 2023.
How do you know if the rent increase notice is in compliance with the law?
In order to be in compliance with the law, the rent increase notice must contain certain elements, including:
- The new amount of rent proposed by the landlord or the amount of the increase, in dollars or percentage compared to the current rent;
- The deadline given to the tenant to refuse the suggested rent increase;
- Any other requested changes to the lease.
What happens if the rent increase notice is not in compliance with the law?
If you notice that the rent increase notice does not comply with the model proposed by the Administrative Housing Tribunal, you will still need to send a letter to your landlord indicating that you do not agree with the rent increase.
In some cases, it is possible that the TAL (Tenant Affairs Board) decides that the notice is null due to its non-conformity and that the owner is therefore not entitled to the proposed rent increase. It is also possible that the TAL concludes that the notice is valid, and therefore that the rent increase is also valid.
A non-compliant notice is treated on a case-by-case basis, so it is best to familiarize yourself with the rest of the process for contesting a rent increase that you consider abusive.
How to determine if a rent increase is abusive?
Before undertaking any other steps, you will likely wonder whether the rent increase proposed by the landlord is abusive or not. This is a rather complex question, with fairly nuanced answers.
Indeed, contrary to popular belief, there is no fixed rate for rent increases. Rather, there are a multitude of criteria that could cause your rent increase rate to vary, including:
- An increase in municipal or school taxes;
- Expenses related to energy;
- An increase in insurance premiums;
- Major repairs, such as repairing the building's foundations;
- Maintenance expenses, such as painting walls, snow removal, etc.
As for major repairs, there are two situations to consider. If the repairs benefit all tenants in a building, the rent increase associated with them will be divided among each tenant. However, if the repairs only affect your neighbor, they should not affect the amount of your own rent.
Even though there is no fixed rate, the TAL rent calculation grid nevertheless provides for an average increase in rent every year. In 2023, for an unheated dwelling, the average increase in rent is 2.3%. For a heated dwelling, the average increase is 2.9%.
Thus, it is possible to conclude that a rent increase that significantly exceeds the TAL's average index could be considered an abusive increase. However, it is not always so simple, since several factors can affect the increase in your rent. Therefore, to determine if the increase is abusive, you will have to take into account the TAL adjustment rate, the rate of variation of taxes, the cost of major work if there has been any, etc.
The TAL website also offers a rent increase calculator available to landlords and tenants to facilitate negotiations between the parties and establish a fair and reasonable increase.
If in doubt, it is always preferable to consult with a specialized lawyer in housing law . This expert is perfectly equipped to help you determine if you are facing an abusive increase and can assist you in your challenge process.
What happens if you refuse a rent increase?
If you choose to refuse a rent increase, it is important to notify your landlord in writing. If you fail to respond to the lease modification notice, the law will consider that you have accepted the proposed modifications by the landlord.
So, what happens when you refuse a rent increase? Several scenarios are possible:
- Your landlord may decide to do nothing. In this case, the lease will be renewed under the same conditions as before and the rent will not increase.
- Your landlord may try to negotiate with you to reach a mutual agreement. If you come to a mutual agreement, it is preferable to put it in writing to keep a record of it.
- Your landlord may go to the Régie du logement to have it decide on the rent increase or any other modification to the lease. It may also ask the Régie to set the amount of the rent.
It is important to know that refusing a rent increase is a right recognized to you by law as a tenant. Therefore, your landlord is prohibited from evicting you from your dwelling because you have refused a rent increase.
If your landlord decides to file a TAL application for a rental rate adjustment, they must:
- Notify you of the rental rate adjustment application (by registered mail, bailiff or in person);
- Submit proof of notification of the application to the TAL within 45 days;
- Complete the Calculation Form provided by the TAL;
- Notify you of the completed form;
- Submit the completed form to the TAL file;
- Submit proof of notification of the form to the TAL within 90 days from your receipt of the form.
The TAL will subsequently summon both parties to a hearing. The court will hear the evidence and claims of each party in order to determine whether the rent increase is abusive or in compliance with the law.
The assistance of a lawyer specialized in housing law can make all the difference at this stage: this legal expert is specially trained to represent tenants facing an abusive rent increase! They can represent you and help you build your case in order to increase your chances of success at the TAL hearing.
What protections do tenants have against abusive rent increases?
As a tenant of a dwelling, the law offers you certain rights and protections. Among these, we notably find your right to be notified of a rent increase within a reasonable period of time that depends on the duration of the lease. Thus, if your landlord decides to increase your rent for the following year, they must notify you in accordance with the requirements of the law.
You are also protected against an abusive rent increase, meaning a rent increase that goes well beyond the factors established by the TAL. If you believe you are facing an abusive rent increase, you have the right to refuse it. It will then be up to your landlord to take the necessary steps, either to negotiate with you and reach an amicable agreement, or to file a request with the TAL.
JuriGo helps you find a housing lawyer in case of abusive rent increase!
In any case, it is better to be accompanied by a legal expert who knows about lease modifications. Who better than a housing lawyer ?
Indeed, whether it is to help you with any calculation related to rent increase or to represent you in a proceeding before the TAL, the housing lawyer is the expert you need if you are facing an abusive rent increase.
Moreover, JuriGo can simplify your search by putting you in touch with one of its partner lawyers specializing in housing law. Why make life complicated?
All you have to do is fill out the form below and you will be put in touch with a housing lawyer in your area.
This contact is free and does not commit you to anything, so don't wait any longer!