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Rent Increases: Quebec announces new adjustment rates

Although it is still too early to say what the average rate of increase will be, renters in Quebec can already expect a rent increase in 2023.

In 2022, the NLP It awarded an average of 4% of the rent settlement in cases heard in court. This rate takes into account capital expenditures.

Prices were revealed on Tuesday before NLP These are the ones that are taken into account by the rent increase calculator.

these ratios [de 2023] It made it possible to determine the amounts allocated to each component of the account in accordance with the actual expenses incurred for the building or dwelling concernedthe administrative court determines.

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The 2023 Administrative Housing Court Amendment Rates were announced Tuesday noon.

Photo: Administrative Housing Court

Of note, according to NLPthe share of homeowner energy spending is significantly higher in 2022, especially for natural gas (26.2%) and fuel oil and other energy sources (40.1%).

For example, file NLP It is estimated that an oil-heated dwelling with a monthly rent of $1,000 could cost up to an additional $80 per month (+8%). This calculation takes into account the increase in municipal taxes.

After the municipal tax increase, a $1,000 home heated with natural gas can now cost $1,052 per month (+5.2%).

After the municipal tax increase, a $1,000 home with electricity could cost $1,034 per month (+3.4%).

Finally, after the increase in municipal taxes, an unheated unit at $1,000 could cost $1,029 per month in 2023 (+2.9%).

Too little for the owners

The Corporation of Quebec Property Owners (CORPIQ) is critical of the adjustment rates announced on Tuesday.

According to her, the TAL fails in its attempt to take account of the increases assumed by Quebec owners. Remember, the renovation and maintenance sector experienced cost growth of 22% in 2021 and, at the same time, inflation of 7% in 2022. Thus, rental owners will, once again, have to absorb significant inflation in a fragile context of property management.

CORPIQ reiterates that the TAL lease account network is Outdated.

The explosion in renovation and maintenance costs over the past three years has also hurt rental property owners, who have been hit by a 400-point increase in the Bank of Canada’s key interest rate, while more than 50% of them have a variable rate mortgage and in 60% of cases The value of the mortgage is more than half of the original loanadds CORPIQ.

Although rates of increase this year are higher, these rates are still clearly insufficient to maintain a healthy, modern housing stock. The government has missed the opportunity, as it has every year since 1981, to update an outdated method of calculation that benefits neither tenants nor landlords.For his part, replied Martin Messier, president of the Quebec Owners Association.

Increases for tenants

It will be a little difficult for some tenants, especially those heated by natural gas or oil, [pour qui] Modification rates are particularly highNicole Dionne, coordinator at the Quebec Bureau of Animation and Housing Information (BAIL), a Quebec tenant advocacy group, responded.

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Municipal taxes and major renovations are added. For some renters, it could be really salty in 2023.

Provides for higher increases than in previous years. There are tenants who called us. We’re easily talking about an extra $40 a month. Calculations have not been made to check whether they are justified, but they are much higher than in previous years.

Ms. Dion reiterates that tenants who received their renewal notice before Tuesday should wait. Landlords usually have to wait for the amendments to be announced before sending rent increases justification.