Indeed, when a tenant refuses an increase, his lease is renewed automatically and he does not have to move. The Régie du logement (Rental Board) then supplies the owners with a method to calculate the increase. In front of an excessive increase, refusing is the only way to have the rules of calculation applied.
PAY ATTENTION TO THE DELAY FOR A REFUSAL: You have a one month delay to refuse. If you do not answer, that is the equivalent to an acceptance.
ATTENTION with the proof of the refusal: Your proof of refusal must be dated. The refusal by registered mail is an excellent proof. There is also other ways. For example, we can have the recipient sign and date our copy of the document.
ATTENTION, if you live in a building built for the past five years, a refusal requires you to move at the end of the lease.
Here are the estimated average rent increases of the Régie du logement a tool to help you exercise your right to refuse an increase.
To find out if you should refuse, you can apply a simplified method of estimation. It is based on averages for all of Quebec. It is not as precise as the calculation.
1) Increase due to operating expenses
- Dwelling heated by the tenant 0,8%
- Dwelling heated by the landlord: with electricity 1,0%, with gas -0,5%, with oil -7,9%.
2) Adjustment for taxes variations
Depending on if the taxes increased or diminished, you must adjust the basic increase.
- Take the amount of the taxes variations and divide it by the quantity of apartments included in the building. After add or subtract this amount from the basic increase.
- For municipals taxes : 872-6386 (Account of January 2009 minus January 2008)
- For schools taxes : 384-5034 (Account of June 2008 minus June 2007)
3) Additional increase for major repairs and improvements
- Adjustment 2,9 %:
It means that each $1000 spent for major repairs and improvements brings an increase of $2,42 per month and that increase has to be divided by the number of dwellings that benefit from the expense.
The Comité logement Lachine-LaSalle can help you estimate your rent increase. Every Tuesday from 10.00 to 16.30 two volunteers are available. Please call for information at 514 544-4294.
