Increase in property taxes: Nightmare for home owners
Montreal, November 15, 2023 --- The Association of Property Owners of Quebec (APQ) is aware of the announcements from the city of Montreal and Laval which addresses tax increases of more than 4%. For Montreal, it is an increase of 4.9% on average, and 4.8% for Laval.
Unfortunately, contrary to popular belief, home or building owners are not the only ones affected by these increases, which happen to be the largest in many years. Indeed, the current (current, but outdated) Administrative Housing Tribunal's rent-setting calculation method transfers this increase directly to tenants.
For the 2024 increase calculations, we are sorry to hear that the calculation grid submitted by the Administrative Housing Tribunal (TAL) will be the same as previous years. A calculation method more than 40 years old.
The owner must do the actual calculation with the help of the RN Form and this calculation includes the difference between the amount of taxes from the previous year and that of the current year. Which means that in 2024, we must take the amount of the 2024 municipal taxes minus the 2023 municipal taxes to obtain the difference.
“The calculation method transfers any tax or insurance increase 100% to tenants. A responsibility that is imposed on landlords who are singled out when they send their rent increases.” according to Martin Messier, president of the APQ.
In Montreal the increase would be $254 for an average plex, but $254 spread over 2 units is a significant increase to send to tenants and it does not include other major costs and expenses.
“It is important to wait to receive your tax bill before calculating your 2024 increases because a large part of the increase to be sent will be due to this 4.9% increase.” according to Martin Messier, president of the APQ.
Also, the APQ will once again hold its APQ rent-fixing clinic on January 20, 2024 and will help landlords make their increase calculations.