Rent Increase Regulations Could Impact Tenants Across Province
A proposed regulation may lead to a potential uptick in rental costs for tenants as landlords seek to cover building repair and renovation expenses.
Former Minister of Housing, France-Élaine Duranceau, unveiled a draft regulation on Sept. 3 that could alter rent-setting regulations, sparking concerns among tenants.
Following the conclusion of the consultation period last week, the fate of the regulation hangs in the balance.
Under the proposed rules, landlords post-renovation could impose a 5% increase in rent to account for maintenance and renovation costs, aiming to spread out capital expenses over a 20-year period.
Historical data from the Ministry of Housing reveals that the depreciation rate has varied annually, ranging from 2.4% to 4.8%, with the most recent rate at 4.8%. This rate is subject to fluctuations based on prevailing interest rates.
The Administrative Housing Tribunal (TAL) is contemplating a new method for calculating rent hikes, considering the average Consumer Price Index (CPI) from past years. This approach would shift away from the existing system tied to housing-related inflation.
This marks the second proposal on rent adjustments presented by France-Élaine Duranceau, with a previous version similar to the current one put forth in April but not pursued further.
A petition opposing the regulation has garnered support from approximately 15,000 individuals, reflecting widespread apprehension about the potential impact on renters.
