Calculation of the 2014 rent increases

MONTRÉAL, Jan. 24, 2014 /CNW Telbec/ - The Régie du logement has established the applicable percentages for the purpose of calculating the 2014 rent increases, in accordance with the Regulation respecting the criteria for the fixing of rent. The percentages enable the amounts attributed to each component of the calculation to be determined on the basis of the actual expenses incurred for the building or dwelling in question.

Table: Applicable percentages

Rent component 2013 2014
Electricity 0.2 % 1.3 %
Gas -6.8 % 1.0 %
Heating oil and other sources of energy 5.4 % - 0.5 %
Maintenance 4.2 % 4.3 %
Service costs 2.2 % 1.1 %
Management costs 1.2 % 1.2 %
Net income 0.6 % 0.6 %
Capital expenditures 2.6 % 2.6 %

A calculation tool is available on the Régie's website at http://www.rdl.gouv.qc.ca. In addition to this electronic form, entitled Calculation 2014/How to agree on the rent, the website provides a printable PDF version of the form.

These tools result in a precise calculation of the rent, by taking into account the variation in municipal and school taxes, insurance, major improvements and all the building's operating costs. The paper version of the form will be available at our 26 offices and service locations as of the second week of February.

In this way, the Régie du logement provides landlords and tenants with a basis for discussion in order to encourage agreement on a rent increase.

For example, using the new percentages for the net income, maintenance, service, management and energy components, the Régie indicates below estimated average basic increases for 2014. These estimates were obtained by using, for each category of expenses, the new percentage that applies for 2014, based on the cases submitted to the Régie du logement in 2012 and 2013.

Dwellings heated with Estimated increases
(excluding taxes and capital expenditures)
electricity 1.1 %
gas 1.1 %
heating oil 0.6 %
Unheated dwellings 0.8 %

CAUTION: The estimates do not take into account the specific features of each building. The operating expenses for a building may justify a variation in rent that differs from the estimates. The same applies to adjustments attibutable to increases in municipal and school taxes and insurance.

Therefore, for a calculation that applies to a specific building, the calculation tools provided for that purpose must be used. Furthermore, when rent is fixed by the tribunal, the legal calculation is made on the basis of the building's operating expenses, not on average estimates.

Note that specific rules apply to residential rent increases. Explanations of these rules are found on the Régie's website, as well as models that can be used for notices of rent increase and replies to such notices.

The Régie can also be reached by phone:

Montréal, Laval and Longueuil area
514 873-2245

Elsewhere
1 800 683-2245

SOURCE Régie du logement

For further information:

Denis Miron - 514 864-5914 or 514 873-6575
denis.miron@rdl.gouv.qc.ca