The method used to issue rent increase rates to the Administrative Housing Tribunal (TAL) has never changed since the 1980s. So, with the announcement of the Consumer Price Indices (CPI) from January to June 2024, the APQ can estimate the 2025 rates with half of what it was last year.
What we are seeing is that major work has increased to 5% (0.2%), but this rate will certainly be lower than 4.8% (the 2024 rate) because the Bank of Canada has indicated that interest rates will no longer increase but on the contrary will gradually decrease. So, this 5% rate should be reduced by December 31, 2024.
For the rate related to maintenance, it is down sharply (from 7.5% to 1.8%).
Regarding heating oil, the rate has become positive again, going from -10% to 1.4%.
The winter/spring 2024 parliamentary session concluded in June with two new laws affecting the rental world (Bill 31 and Bill 65), but neither addressed the method of setting rent. Even if it is the complete overhaul of the calculation that must be done, the amortization period of the return on investment for major work should at least be changed. Discussions on this subject took place during the detailed study but no amendments were tabled.
The Association des Propriétaires du Québec (APQ) hopes that a by-law will be tabled to correct this situation before the next period of increase.
| Taux TAL 2025 (estimé) | Taux 2024 | |
| Électricité | 2,2 % | 2,8 % |
| Gaz | -6,7 % | -7,3 % |
| Mazout | 1,4 % | -10,0 % |
| Entretien | 1,8 % | 7,5 % |
| Services | 3,5 % | 5,3 % |
| Gestion | 6,1 % | 5,6 % |
| Revenu net annuel | 3,1 % | 3,9 % |
| Travaux majeurs relatifs à tout l'immeuble | 5,0 % | 4,8 % |
What we are seeing is that major work has increased to 5% (0.2%), but this rate will certainly be lower than 4.8% (the 2024 rate) because the Bank of Canada has indicated that interest rates will no longer increase but on the contrary will gradually decrease. So, this 5% rate should be reduced by December 31, 2024.
For the rate related to maintenance, it is down sharply (from 7.5% to 1.8%).
Regarding heating oil, the rate has become positive again, going from -10% to 1.4%.
The winter/spring 2024 parliamentary session concluded in June with two new laws affecting the rental world (Bill 31 and Bill 65), but neither addressed the method of setting rent. Even if it is the complete overhaul of the calculation that must be done, the amortization period of the return on investment for major work should at least be changed. Discussions on this subject took place during the detailed study but no amendments were tabled.
The Association des Propriétaires du Québec (APQ) hopes that a by-law will be tabled to correct this situation before the next period of increase.