Duranceau’s Rent Reform Takes Effect January 1

Bassyonni

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Duranceau’s Rent Reform Takes Effect January 1

New rent reform measures introduced by France-Élaine Duranceau will become effective on January 1. This reform changes the way rent increases are calculated in Quebec. The new methodology received criticism from tenant advocacy groups for its potential impact on renters.

Duranceau’s Rent Reform Details

The newly implemented calculation method is simpler for tenants to understand. It will be based on a three-year average of the general Consumer Price Index (CPI).

Key Changes in Rent Calculation

Fixed Rate for Renovations: From January 1, landlords making renovations can pass costs onto tenants at a fixed annual increase of 5%. This amount will be amortized over 20 years.
Revised Tribunal Recommendations: The Administrative Housing Tribunal (TAL) will halt annual recommendations for rent increases. It will only provide updated CPI averages from January’s end and the two preceding years.
Private Residence Rates: A specific rate for private residences for seniors (RPA) will also be disclosed.

Calculation Tools Available

Tenants can utilize TAL’s online calculator to adjust these figures to their situations, considering factors such as taxes, insurance premiums, and renovation costs.

Impact on Renters

Last year, the previously used calculation method resulted in an average rent increase of 5.9%, marking a record high in four decades. Had the new calculation been in place, this rate would have been reduced to 4.5%. However, tenant organizations fear that the fixed charge for renovations might lead to less favorable outcomes for renters.

The cumulative effect of these changes may be particularly challenging for vulnerable groups, including seniors and young tenants, in their search for affordable housing.

Government’s Objectives

Duranceau indicated that the reforms aim to encourage landlords to renovate properties while addressing the chronic underfunding of renovations. The government hopes to enhance safety and livability standards in housing.

As these new measures take effect, their true impact on the rental market and the lives of tenants in Quebec will become clearer in the coming months.