Rent increase 2024: Higher rates which reflect an increase in the costs of a building and an unprecedented wave of refusals
Montreal, January 16, 2024 --- The Association of Quebec Landlords (APQ) is aware of the announcement of the 2024 increase rates issued by the Administrative Housing Tribunal (TAL) today which unfortunately is never good news for owners, especially with a method that does not take into account the reality of the market. However, we must anticipate an unprecedented wave of refusals of rental increases by tenants, tenants who are encouraged to refuse without taking the time to analyze the situation or discuss with their landlord.
“Contrary to what will be conveyed in the coming days, even if the rates planned for calculating rent increases are higher this year, such as 4.8% for major works for example, this figure is however far, very far away from being considered “enrichment" for a home owner. This meager 4.8% or $4.00 increase for $1,000.00 of work carried out, represents almost 21 years to have a return on investment!" according to Martin Messier, president of the APQ.
Yes, the rates for the 2024 calculation purposes have increased for several expenditure items, but this also means that the bills received and paid in 2023 by home owners have experienced an equally significant increase. The rates issued are based on the Consumer Price Index (CPI) which is directly linked to inflation.
These 2024 rates are also a missed opportunity to restore a certain balance between the obligations and expenses of owners and the calculations for setting rent. In fact, Bill 31, An Act to amend various legislative provisions relating to housing, did not address this aspect and no regulation was tabled to correct this financial nonsense.
“For a second consecutive year, the rates of increase are higher. However, these rates are only an illusion, they remain clearly insufficient to maintain a healthy and modern real estate stock.” added Martin Messier, President of the APQ. Many owners have seen the profitability of their building destroyed by the increase in their mortgage payment with the rise in interest rates even. The method used by the TAL for rental increases does not take this into account, according to Martin Messier president of the APQ"
It is unfortunate that in 2024, the message to homeowners will still be the same, due to a lack of the Government’s desire for change. The APQ is issuing a reminder to owners: “Please note, to make your calculations you must take into account ALL your expenses and even increases in municipal, school and insurance taxes.”
"Owners, do not rely on a general rate or estimates for the whole of Quebec, take the time to calculate for each accommodation what amount you will be entitled to."
Two APQ tools are available to support you:
APQ Rent Fixing Clinic
Free online or in-room training from 10 a.m. to 3 p.m. Saturday January 20, as well as help with calculating increases online from January 22, 2024. Full details at https://www.apq.org /events/list/rent-fixing-clinic-apq/
APQ Calculator for you
The Association of Property Owners of Quebec (APQ) always makes available the “Calculo APQ” calculation tool.
With this calculation tool, you can easily carry out your rent increase and delivery date calculations. After the calculation, you will be able to receive the automatically generated documents by email in order to keep your calculations and directly print your notices according to your choice of increase.
Download the APQ application which is available on Google Play (Android), App Store (Apple, iPhone, iPad) and Microsoft (Windows 10) to do your calculations: https://www.apq.org/application-apq/
Rent increase 2024: Higher rates which reflect an increase in the costs of a building and an unprecedented wave of refusals
