At each renewal of the lease, your landlord has the opportunity to increase the monthly cost of your housing to adjust it to the cost of living. Indeed, it is always possible for the two parties involved to agree on an amount corresponding to the increase.
However, it is possible that the increase proposed by the owner of your housing is too significant and you consider this amount as abusive. Even if he is the owner of the premises, the landlord must justify the increase.
In addition, the Tribunal administratif du logement annually proposes a rate representing the increase that the landlord can ask his tenants. This decision is nevertheless the result of the political sphere and the associative environment. It will also take into consideration all the increases imposed on the owner (taxes, insurance…)
However, it is only a recommendation and, in many cases, it is possible that your landlord decides to increase the rent by more than what the TAL suggests.
No matter the rent increase, you have the option to refuse it. JuriGo tells you everything you need to know when you receive a rent increase.
What are the increases to expect for the year 2023?
Each year, the Tribunal administratif du logement is mandated to provide a grid to set rent increases. This year, the Tribunal administratif du logement proposed a grid whose increase rate is significantly higher than that of the last 10 years.
When the Tribunal establishes the rent increase scales, it takes into consideration several factors, including the increase in insurance costs as well as municipal taxes. However, the type of heating used is the most determinant criterion.
| Type of Accommodation | Average Rent Increases | |
|---|---|---|
| 2022 | 2023 | |
| Unheated | +1.28 % | +2.3 % |
| Electrically heated | +1.34 % | +2.8 % |
| Gas heated | +1.91 % | +4.50 % |
| Oil heated | +3.73 % | +7.30 % |
However, other criteria are considered in the calculation of the Tribunal administratif du logement. Indeed, since the increase in taxes and insurance is taken into account in the calculation of the Tribunal administratif du logement, a landlord could not justify a significant rent increase on the basis of these arguments.
Moreover, faced with an increase, you can always ask your landlord to provide you with the data used to choose the amount of the new housing. However, you cannot demand and therefore, he is fully within his rights to refuse.
The Tribunal administratif du logement provides you with calculation tools to estimate the potential cost of your rent increase. However, this is more useful for landlords since you need to enter information to which you do not necessarily have access as a tenant.
Other factors are considered by the TAL when it calculates the rent increase. Indeed, in its calculations, the increase in taxes will normally be considered. For example, when it comes to unheated housing, the rent increase can reach a value of 2.9%.
If, in addition to the increase in taxes, the landlord had to carry out major work , it is possible that this rate reaches 4.5%. In short, for a monthly rent of $1,000, your new rent can reach an amount between $1,023 and $1,049.
When should my landlord notify me of the increase?
If your landlord decides to increase the price of your housing, the latter must send you a formal rent increase request within the required deadlines.
| Lease Duration | Delay for rent increase request |
|---|---|
| Lease of 12 months and 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 |
Normally, in Quebec, a residential lease lasts for 12 months. If your landlord does not respect these terms, the lease is automatically renewed under the same conditions as your old rent. Therefore, the price of your rent will remain the same.
In the event that your landlord sends you the rent increase within the prescribed deadlines, he must indicate certain characteristics related to your lease:
- The rate of increase or the new amount to pay,
- The duration of the lease, and
- The time you have to make your decision regarding the increase.
| Important! If you do not give a response to your landlord, they may consider that you have accepted the rent increase. Therefore, if you wish to refuse, you must inform your landlord within the30 days following the receipt of the request. |
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In addition to containing this information, the notice must necessarily be sent to you in writing in order to have an official aspect.
If you have received this type of notice that respects all the deadlines and conditions imposed by law, three options are available to you:
- Accept the increase and renew the lease,
- Refuse the increase and move out,
- Contest the increase and do not move out.
What to do if I want to contest a rent increase?
Being the owner of the premises, your landlord has the right to impose the rent increase as he sees fit. The only constraint related to an increase is that it must be motivated by reasonable arguments.
When you receive a rent increase, as a tenant, you always have the possibility to contest it if you consider that the rent increase is abusive . In this case, it is possible to reach an amicable agreement with your landlord.
However, if you are not able to reach an agreement with the owner of your housing, he will have to file, at the Tribunal administratif du logement, a rent determination request.
As long as the latter has not made a judgment on the abusive aspect of the increase, the owner must continue to pay the price of the housing from your old lease.
| Attention! If you live in an apartment which is new, your landlord has the right to evict you when your lease ends if you refuse to pay the requested increase. For this, it is necessary that the building has been built in the last 5 years. |
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When such a request is submitted to the TAL, you will need to wait because the delay may reach a period of up to 6 months, if your file is deemed a priority.
However, if your file is not considered a priority, your wait could last several years!
Good to know! In the case of a revision request, keep in mind that the judge will always allow a rent increase. However, this will usually be based on his evaluation grid.
If you are a new tenant, if you do not wish to pay a substantial rent increase compared to the previous tenant, it is usually specified in the lease the price that he was paying.
Are you afraid that your landlord will increase the rent on the basis that you have exercised your right to challenge the rent increase? Know that Article 1899 of the Civil Code of Quebec restricts this authorization.
| Art. 1899. Prohibition The landlord may not refuse to grant a lease to a person, refuse to maintain their rights or impose more onerous conditions for the sole reason [...] that this person has exercised a right granted to them under this chapter or under the Act respecting the Administrative Housing Tribunal. |
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When you introduce an appeal to the Administrative Housing Tribunal , it is important to know that it does not apply a fixed rate to establish the increase it will order. Indeed, each situation is case by case and will be treated as such by the TAL (formerly the Régie du logement).
Normally, when it establishes the amount of the increase, it will base its decision on several factors:
- The landlord's income from the building,
- The variation in rent, and
- Additional costs (taxes, insurance, services, maintenance…)
Do you want to challenge a rent increase? Find a lawyer with JuriGo!
If your landlord has decided to increase your rent and you think the rate is abusive, the first thing to do is to talk to him. Having an amicable agreement is always more effective than starting legal proceedings.
However, if your landlord is completely closed to the opportunity to discuss the increase, it might be very useful to deal with a housing law lawyer!
Indeed, he will be able to assist you throughout the procedures and will add credibility to your desire to challenge the salary increase. Moreover, in case of dispute, he can represent you before the Administrative Housing Tribunal.
Don't wait any longer and fill out the free JuriGo form now to Find a lawyer for you!