Rent Control Regulations to Change on January 1st
The Quebec government is set to change rent control regulations starting January 1st. These changes aim to simplify rent increase calculations and enhance predictability for tenants. The new rules come in response to a proposed historic rent increase of 5.9% by the Tribunal administratif du logement (TAL) in January 2025, which faced severe backlash from consumer advocacy groups and political parties.
New Criteria for Rent Increases
Previously, rent increase regulations were based on 13 different criteria. The new framework now narrows this down to four key factors:
- Variation in property taxes
- Changes in insurance premiums
- A 5% proportion of capital expenditures (for maintenance and repairs)
- The average Consumer Price Index (CPI) over the past three years, encompassing all goods rather than just housing costs
Notably, landlords undertaking significant repairs and renovations must only account for the amount repaid during the year, with a 20-year amortization period. Additionally, any municipal or government financial aid received must also be factored in.
Impact on Suggested Rent Increases
According to the Regroupement des comités logement et associations de locataires du Québec (RCLALQ), these adjustments could limit the TAL’s suggested 2025 rent increase to 4.5%.
Changes for Private Senior Residences
Private senior residences (RPA) will also see changes in how they calculate rent increases. These establishments are required to separate the rent increase associated with housing from that related to services provided, such as personal assistance, nursing care, and meal preparation. In this case, the increase must be calculated based on the CPI related to healthcare services.
Reactions to the New Regulations
Opinions on the regulation changes are divided. The RCLALQ warns these modifications might accelerate rent increases. They criticize the law’s shift of financial burdens for capital expenditures onto tenants, which traditionally should be the responsibility of property owners. The organization advocates for rent increases to be tied to operating costs rather than capital expenses, and they suggest instituting a cap similar to Ontario’s approach.
Conversely, the Corporation des propriétaires immobiliers du Québec (CORPIQ) welcomes the government’s initiative. Spokesperson Éric Sansoucy characterized the changes as crucial for balancing the interests of both tenants and landlords. CORPIQ also calls for the development of new tools to modernize buildings in the coming years, emphasizing the need for decarbonization efforts.
