MONTREAL, Jan. 28 /CNW Telbec/ - In Quebec, landlords and tenants are
free to agree on a rent increase that both deem satisfactory. If they cannot
reach an agreement, the Régie du logement offers them, on its Web site, the
fixing of the rent method that it applies when it has to fix the rent
increase. Based on that method, the Régie releases every year averages
estimated accordingly with the Regulation respecting the criteria for the
fixing of rent.


    To estimate quickly the rent increase, the energy source used for heating
must be considered and also the major repairs and improvements made by the
landlord in the dwelling or the building in 2007.

    1 - Operating costs
    The first table presents the                                     No tax
    basic increases when there               Heated dwellings      variation
    is no variation of municipal                               --------------
    and school taxes and no major            with electricity         0.8%
    improvements.                                    with gas         0.5%
                                                     with oil         1.3%
                                         Non heated dwellings         0.7%

    If there is a tax increase,   Heated dwellings        tax increase
    0.7% must be added for each                      ------------------------
    tax increase of 5%. For       with electricity   + 0.7% = 1.5%
    instance, for a dwelling              with gas   + 0.7% = 1.2%
    heated by electricity                 with oil   + 0.7% = 2.0%
    when taxes have           Non heated dwellings   + 0.7% = 1.4%
    increased by 5%,                                 ------------------------
    the estimation
    is of 1.5% (0.8% + 0.7%).
    If the tax increase is
    of 10%, then the average
    estimation is of 2.2%
    (0.8% + 1.4%). A tax
    decrease will have the
    opposite effect.

    The Régie reminds that each fixing of the rent case is treated
    specifically. There may be a gap between those average estimations and
    the result of a calculation made for a particular building due to the
    degree of importance of the operating costs from one building to another.


    Adjustment rate applied to major repairs and improvements: 4.3 %

    It means that each $1000 spent for major repairs and improvements brings
an additional increase of $3.58 per month and that increase has to be divided
by the number of dwellings that did benefit from the expense.


    Following is an evaluation of a rent increase for a dwelling which rent
    is of $600 per month.

    The dwelling is heated by the tenant and the taxes of the building have
    increased by 5%. The increase due to the operating costs is of:

        0.7 % + 0.7 % = 1.4 % (percentage applicable to the rent)
        Increase = 1.4 % x $600 = $8.40

    Also, in 2007, the landlord made some major repairs and improvements by
    renovating the kitchen of that dwelling to the amount of $3000.
    We must add :

        3 x $3.58 = $10.74

    The total increase:

        $8.40 + $10.74 = $19.14, rounded off to
        the nearest dollar: $19.00


    With a few clicks, the electronic version of the form Calculation 2008 /
How to agree on the rent allows a more precise calculation of the rent
increase. It is located on the Régie's Web site at
The paper version of that form will also be available during the second week
of February.

    To reach the Régie du logement :

    Montreal, Laval and Longueuil areas
    (514) 873-2245

    Other areas
    1 800 683-2245
    -%SU: TAX
    -%RE: 1

For further information:

For further information: Jean-Pierre Le Blanc, (514) 873-6575

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Régie du logement

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