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| Verdun, QC H3E 1V6 |
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| http://www.oocities.org/alis_nita |
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NITA’S COMMENTS ON METROPOLITAN STRUCTURES (MSI) INC.’S PROPOSED RENT INCREASES |
Please, advise neighbours of the contents of this message, but
NEVER POST IT ON THE LANDLORD'S PROPERTY
(this includes lobbies, elevators, laundry rooms, and bulletin boards)
VERDUN, January 30 /NITA/ - Following last Wednesday’s announcement by the Régie du logement (Québec Rental Board) of its annual rent adjustment factors, the Nuns’ Island Tenants Association (NITA) is now in a position to express its opinion on what constitutes a reasonable increase for “Fixation 2007” (that is, for leases due for renewal between April 2nd, 2007 and April 1st, 2008).
Tenants of Metropolitan Structures (MSI) Inc. (“MSI”) whose leases expire on June 30th of this year, have, for the most part, received their rent increase notices approximately 10 days ago. MSI is asking for a 2.75% increase. NITA considers such an increase too high, in most, if not all, cases.
NITA reminds tenants that in Québec, landlords and tenants are free to negotiate yearly the renewal terms of their leases, including an increase or decrease of rent. When the two parties cannot come to an agreement, our legislation provides a framework to “fix” the rent. Should a tenant refuse a rent increase, the landlord has one month from reception of the tenant’s notice to this effect to file an application with the Régie du logement, who will then fix the rent according to its criteria, a process which we’ll refer to as “Fixing of rent 2007”. The Régie applies its annual adjustment factors to the landlord’s revenues earned, and specific expenses incurred, in the reference period (essentially, the preceding calendar year, i.e. 2006, for 2007 rent increases).
In light of the Régie’s 2007 adjustment factors, NITA expects that the Régie will grant MSI increases (for the majority of units that did not benefit from major repairs in 2006) in the following ranges:
- 0.6% to 0.9%, for gas-heated dwellings;
- 1.5% to 1.9% for electric-heated dwellings;
- 0.8% to 1.0% for dwellings where heating is not included.
Let’s also recall that MSI’s residential complex is composed of 3,100 units: 2,813 (i.e. more than 90%) are gas-heated; 231 apartments are electric-heated; and 56 townhouses are heated at the tenant’s expense. To arrive at these figures, NITA uses a consistent and conservative methodology in estimating the landlord’s expenses, and also relies on publicly available information (including municipal and school taxes, as well as expenses declared by SMI in “Fixing of rent” hearings in prior years). “To the best of our knowledge, our estimates over the past decade have always been in line with the increases eventually determined by the Régie,” stated Mr. Jacques P. Anfossy, NITA’s Secretary and acting President.
NITA encourages tenants to negotiate their increase, but in order to do so, both parties must make an enlightened decision, and understand the process. Of course, negotiations can involve other issues, including improvements to the dwelling, for example, and “that is why NITA believes that it is ultimately up to each tenant to accept or refuse any given offer,” added Mr. Anfossy.
Again this year, NITA would have wished that MSI had waited until after the Régie published its annual adjustment factors before sending out their May, June, and, to a greater extent, July 1st renewal notices, especially since our legislation allows for these notices to be sent between six and three months before the end of the lease. To send these notices before publication of the annual adjustment factors is to deprive several hundred clients of the full month that they would otherwise have to reflect and make an enlightened decision. In addition, NITA wishes that SMI would furnish its tenants, in the month that they have to decide, the information used in the fixing of rents. This would allow everyone the leisure of having all the required information in hand, and would also be in line with the Régie’s position, as evidenced by the worksheet that they provide landlords and tenants to negotiate such an agreement.
NITA also wishes to remind tenants that they have one month from the date of reception of the landlord’s renewal notice to reply. Faced with such a notice, the tenant has three choices:
- not renew the lease;
- renew the lease, but refuse the proposed modifications (including the rent increase);
- renew his lease and accept the proposed modifications.
A tenant who does not reply within a period of one month is deemed to have accepted the increase (and/or any other proposed modifications). Further, this delay is absolute, even if negotiations are underway.
NITA recommends tenants use the reply form suggested by the Régie, available at
http://www.rdl.gouv.qc.ca/en/pdf/avisaug_ang(2003-01)_p2.pdf (or in French at
http://www.rdl.gouv.qc.ca/fr/pdf/avisaug(2003-01)_p2.pdf) or from NITA, and to use a method of delivery that provides proof of reception (such as Registered Mail or hand-delivery with an acknowledgement of receipt).
Since each case is different, NITA is available to answer all questions from members. The Association can be reached, preferably by e-mail, at alis_nita@yahoo.com, or by phone at (514) 767-1003. In addition, tenants are encouraged to visit NITA’s website, at http://www.oocities.org/alis_nita, for further information.
Source : Nuns’ Island Tenants Association (NITA)
NITA (Nuns' Island Tenants Association) is a non-profit organization, staffed by volunteers, founded in February 1993, whose aim is to inform, to represent and to defend the rights of all Nuns' Island tenants.