A landlord has no alternative but to ask for the setting of the rent when a tenant refuses the proposed rent increase. The owner must pay the costs of the request to the Rental Board for the opening of the file.
Sometimes, a tenant will systematically refuse any rent increase, year after year, without ever trying to negotiate the increase by mutual agreement. A tenant can in bad faith refuse an increase of 5.00$ to force the landlord to make a request for setting of the rent and thus to incur legal expenses. In certain circumstances, the landlord can ask that the tenant be ordered to reimburse his legal expenses
THE FACTS
In a recent Rental Board decision (1), the evidence was to the effect that the tenant had had the opportunity to examine the landlords supporting documents. The landlord did not receive any request from the tenant although the the landlord had offered him the opportunity to consult the supporting documents.
The tenant made no request, and took no steps to access the relevant information concerning the setting of the rent and didn't seek to negotiate the rent increase.
Thus, the absence of initiative of the tenant definitively put an end to any possible negotiation. However, the tenant's refusal to negotiate cannot be interpreted as a flat refusal preventing the landlord from demonstrating to the Court that he tried to negotiate with the tenant by in particular giving him access to the relevant data for the setting of the rent.
THE LAW
As regards refunding of the expenses paid by the landlord for the setting of the rent, the rule established by the Rental Board is to the effect that the landlord must bear the costs incurred in at the time of a request for setting of the rent.
However, the Rental Board sitting in revision (2), after having made an overview of the jurisprudence on this question established the criteria of applicable exceptions where the landlord can recover his costs:
“This Court concurs with all points raised in the decisions cited and is of the view that in order to successfully recover his costs the landlord must:
- the landlord must first of all establish that he tried to negotiate with the tenant by in particular giving him access to the relevant data for the setting of the rent, and this before submitting his request, then,
- the lessor must obtain, by the rendered decision, an increase at least equal to the one requested in his notice”.
The Rental Board Review Panel also stressed that the above-mentioned criteria are cumulative insofar that it falls upon the applicant, in fact the landlord, to establish to the satisfaction of the Court these two factual elements if he is to recover his expenses.
A RECENT DECISION BY THE RENTAL BOARD
Recently, according to the Rental Board, a negotiation is the search for an agreement centered on material or quantifiable interests. It follows that it implies a voluntary participation of each party with the aim of coming to a negotiated agreement.
According to the evidence presented at the hearing, the landlord tried to negotiate with the tenant by giving him access to information supporting the setting of the rent but the tenant systematically refused any increase in rent and any attempt to negotiate.
The Rental Board concluded in these terms.
“The Court thinks that the first criterion established by the case law is met.
The second criterion is also met since the increase requested by the landlord is equal to the adjustment of the rent calculated and granted by the Court.
Consequently, the Court grants the landlord reimbursement of the costs of the request in the amount of 57.00$, that is to say 51.00$ for the filing of the request plus 6.00$ for its notification (3)”.
1. Propriété Bella Vita Inc Inc. v. H. Itani. R.L. 31 110404 013F. On October 17, 2011.
2. A. Rossi Buildings v. Bradley. R.L. revision. Montreal. 31 040416 297 V 041221. On February 1,
2007.
3. Opus Citare note 1. Page 2.
Sometimes, a tenant will systematically refuse any rent increase, year after year, without ever trying to negotiate the increase by mutual agreement. A tenant can in bad faith refuse an increase of 5.00$ to force the landlord to make a request for setting of the rent and thus to incur legal expenses. In certain circumstances, the landlord can ask that the tenant be ordered to reimburse his legal expenses
THE FACTS
In a recent Rental Board decision (1), the evidence was to the effect that the tenant had had the opportunity to examine the landlords supporting documents. The landlord did not receive any request from the tenant although the the landlord had offered him the opportunity to consult the supporting documents.
The tenant made no request, and took no steps to access the relevant information concerning the setting of the rent and didn't seek to negotiate the rent increase.
Thus, the absence of initiative of the tenant definitively put an end to any possible negotiation. However, the tenant's refusal to negotiate cannot be interpreted as a flat refusal preventing the landlord from demonstrating to the Court that he tried to negotiate with the tenant by in particular giving him access to the relevant data for the setting of the rent.
THE LAW
As regards refunding of the expenses paid by the landlord for the setting of the rent, the rule established by the Rental Board is to the effect that the landlord must bear the costs incurred in at the time of a request for setting of the rent.
However, the Rental Board sitting in revision (2), after having made an overview of the jurisprudence on this question established the criteria of applicable exceptions where the landlord can recover his costs:
“This Court concurs with all points raised in the decisions cited and is of the view that in order to successfully recover his costs the landlord must:
- the landlord must first of all establish that he tried to negotiate with the tenant by in particular giving him access to the relevant data for the setting of the rent, and this before submitting his request, then,
- the lessor must obtain, by the rendered decision, an increase at least equal to the one requested in his notice”.
The Rental Board Review Panel also stressed that the above-mentioned criteria are cumulative insofar that it falls upon the applicant, in fact the landlord, to establish to the satisfaction of the Court these two factual elements if he is to recover his expenses.
A RECENT DECISION BY THE RENTAL BOARD
Recently, according to the Rental Board, a negotiation is the search for an agreement centered on material or quantifiable interests. It follows that it implies a voluntary participation of each party with the aim of coming to a negotiated agreement.
According to the evidence presented at the hearing, the landlord tried to negotiate with the tenant by giving him access to information supporting the setting of the rent but the tenant systematically refused any increase in rent and any attempt to negotiate.
The Rental Board concluded in these terms.
“The Court thinks that the first criterion established by the case law is met.
The second criterion is also met since the increase requested by the landlord is equal to the adjustment of the rent calculated and granted by the Court.
Consequently, the Court grants the landlord reimbursement of the costs of the request in the amount of 57.00$, that is to say 51.00$ for the filing of the request plus 6.00$ for its notification (3)”.
1. Propriété Bella Vita Inc Inc. v. H. Itani. R.L. 31 110404 013F. On October 17, 2011.
2. A. Rossi Buildings v. Bradley. R.L. revision. Montreal. 31 040416 297 V 041221. On February 1,
2007.
3. Opus Citare note 1. Page 2.