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| Verdun, QC H3E 1V6 |
| FAX: 514-995-2773 | |
| http://www.oocities.org/alis_nita |
|
ANOTHER RENT INCREASE ? |
3% RENT INCREASE???
I’ve gotten a rent increase notice asking for 3%. Is this excessive?
Depending on several factors, the answer will vary. However, after discussions with Metropolitan Structures Inc. (MSInc), NITA estimates that MSInc’s proposed increase of 3% for 2004 is reasonable and justified, for MSInc tenants living in gas-heated dwellings (the majority of MSInc’s units are gas-heated).
This being said, there are exceptions. Tenants are especially urged to attend our workshops or contact us if they are in one of the following categories:
- They have more than one year’s fixing of rent pending (e.g. 2002 and/or 2003);
- They live in an electrically-heated or unheated dwelling;
- They live in a dwelling that underwent major repairs or renovations in the past years.
Should I always accept 3%? Is there a “magic” figure?
NO! Rent increases are arrived at in one of three ways:
- Acceptance of the landlord’s offer;
- Negotiation between the parties; or
- Fixing of rent by the Régie du logement.
Tenants should bear in mind that the fixing of the rent by the Régie is a mathematical exercise based on several factors that vary from year to year, and vary from one building to the next.
Without getting too technical, the Régie takes into account some revenues and expenses of a building (or the whole of the landlord’s properties, in MSInc’s case). It then applies adjustment rates for specific categories, which are only set at the end of January of every year. It also takes into account the increase (or decrease) in school and municipal taxes, and insurance premiums, between the prior year and the year for which the rent is being fixed. It is also important to note that major repairs and renovations are divided amongst the dwellings in those specific buildings that benefited from those repairs.
While the Régie does publish average increase rates, as it did on January 22nd, it is important to understand that these are provincial averages. For example, the Régie estimates average increases of 3.1% for gas-heated dwellings for 2004. However, based on individual circumstances, a 2% increase for one building can be excessive, while a 5% increase for another can be reasonable.
I’ve read your explanations, but still want to contest my rent increase. How do I go about this?
- You must respond to the Landlord, in writing, within one month of receiving your renewal notice. Since you must be able to prove your refusal, you should either hand-deliver it and obtain a receipt, or send it by Registered Mail.
- Your letter must state that you are renewing your lease, but refuse the proposed modification(s).
Is negotiation possible?
Negotiation is actually encouraged by both NITA and the Régie. You are invited to contact NITA prior to entering into negotiations with the Landlord. However, it’s important to keep in mind that you have one month from the date of reception of your renewal notice to advise the Landlord of your refusal.
Help NITA help you… keep us informed.
The above explanations are simplified. However, NITA makes more detailed and updated information available through its website and e-mail. Make sure you’re on our mailing list.
Contact NITA (E-mail prefered):
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NITA - February 2004