As of October 31, 2023, the estimated rate for the first months of 2023 for major work as prescribed by the Administrative Housing Tribunal (TAL) would be 4.7% based on an estimate of the first 10 months.
The actual and final percentage will be known once the 12 months of 2023 have been compiled, i.e. in January 2024.
If with this estimate (over 10 months), we calculate, with the current method we would have $3.92 for every $1000.00 of work done, 21 years for a return on investment.
For the year 2023, the rate for major work was 3.8%: $3.17 for every $1000.00 of work done, 26 years for a return on investment.
The positive way to look at this situation is to say that we are moving away from a 50-year return on investment like in 2022. But we are still at double the payback time that we recommend.
The Association des Propriétaires du Québec (APQ) is calling for major work to have a return on investment of 10 to 12 years.
Since this change does not appear to be part of Bill 31, nor of the proposed amendments, and that no regulations have been tabled to this effect, it would be very surprising if the rent increase calculations were different in 2024, the same rates established according to a 40-year-old method.
Major work: 21 years left before amortization in 2024?
