Find a lawyer for a wrongful rent increase

Rent increases in Canada are governed by the Civil Code. As a result, landlords can’t increase their rent as they see fit. However, there are several essential criteria that influence the final rent rate. One of these is inflation, which has an impact on the price of rent and consequently reduces the availability of affordable housing. How to deal with an abusive rent increase with the help of a lawyer?

Overview of rent increases in Canada

Rent increases do not have to be abusive, as they are governed by a series of Canadian laws.

What causes a rent increase?

Inflation– in other words, the rising cost of materials – is the main cause of rent increases. The costs of heating production, renovation work and maintenance (snow removal, energy expenses, piping maintenance, painting, etc.) have also doubled. Added to this is inflation in services, municipal and school taxes, and insurance. These factors have pushed up the cost of rent.

Every year, all tenants receive a rent increase notice. The average increase is between $40 and $80.

The Régie du logement: the main indicator of rent increases

Under leasehold legislation, the Régie du logement du Québec, also known as the Tribunal Administratif du Logement, is responsible for setting the annual percentage rent increase. It presents landlords with the rate to be applied. As a general rule, the Régie proposes an average increase of around 1.2% for an unheated dwelling, compared with 1.0% for a dwelling heated by electricity.

In addition to the Régie du logement’s proposal, the rental market in the neighborhood or city, as well as overall recommendations, have an impact on rent rates.

When does a rent increase become abusive?

The Régie du logement website features a rent calculator. The tool integrates into its database the elements (municipal taxes, school taxes, insurance, maintenance costs, building operating costs, etc.) likely to change the annual rent increase. It helps landlords to determine a reasonable amount, and tenants to identify abusive increases. At the same time, the tool avoids the risk of breach of lease.

Despite the recommendations of the Régie du logement, no fixed rate is imposed on landlords. However, the TAL rent calculation grid provides for an average rent increase. Consequently, a rent that exceeds the average index becomes an illegal rent increase.

How does the landlord increase the rent?

Rent increase procedures comply with regulatory standards set out in the Quebec Civil Code.

Send a notice of rent increase

Article 1942, paragraph 1 of the C.C.Q. requires landlords to send their tenants notice of any modification to the lease, rent increase or change in condition. The landlord is entitled to only one modification every 12 months.

The notice of increase is sent to the tenant in writing. The deadline for sending it depends on the length of the lease:

• • between 3 and 6 months before the end of a lease of 12 months or more;

• • between 1 and 2 months before the end of a lease of less than 12 months;

• • 10 to 20 days before modification of the request for a one-bedroom lease.

The owner may use the notice to announce other changes.

What does the rent increase notice contain?

Article 1943 of the C.C.Q. sets out the information to be included in the notice of rent increase. In accordance with rent regulations, it mentions :

• • the new amount or the percentage increase over the current rent;

• • the proposed duration of the lease if the landlord is changing the duration of the lease;

• • the tenant’s deadline for accepting or refusing the suggested rent increase;

• • other lease modifications.

The landlord sends a written notice in the same language as the lease. The letter is sent to the tenant’s address given in the lease. In case of difficulty, the TAL provides a model rent increase notice.

What does a tenant do without a rent increase notice?

Article 1946 of the C.C.Q. states that a tenant who has not received a notice of lease modification is entitled to renew his or her lease under the same conditions. If the tenant wishes to remain in the dwelling, the lease will be renewed under the same conditions.

If they do not, they can submit a notice of non-renewal. The TAL provides a model notice of non-renewal of the lease. The notice must be sent between one and 2 months before departure, in the absence of a fixed term in the lease.

How do I contest an unfair rent increase?

The tenant is not obliged to accept the rent increase, especially if it seems unreasonable. So what can you do?

Send a letter to the landlord

Article 1945 of the Civil Code of Quebec sets out the tenant’s rights, including the right to refuse a rent increase. The tenant must send a letter to the landlord within one month of receiving the notice.

The letter declares the tenant’s decision to move, accept the increase or refuse the increase while remaining in the dwelling.

If the tenant fails to respond to the notice, he/she accepts the rent increase. The lease is then renewed under the new conditions, and any form of opposition becomes impossible.

Waiting for the landlord’s reaction

Tenants who refuse a rent increase must notify their landlord in writing. Receipt of the letter leads to 3 scenarios:

• • the landlord accepts the refusal and takes no further action; the lease is renewed under the same conditions as the previous lease;

• • the landlord initiates a negotiation procedure to reach an amicable agreement; the agreement is set down on paper;

• • the owner goes to the TAL for a decision on the next step.

The law prohibits the landlord from evicting the tenant because of his refusal.

Request TAL intervention

After receiving the tenant’s letter of refusal, the landlord has one month to react. He can request the intervention of the TAL if negotiations have ended in failure. The tribunal will then determine the rent increase on the basis of its calculation grid.

If the landlord requests the TAL’s intervention, he files an application to fix the rent. His application is accompanied by notification of the rent-setting application by registered mail, bailiff or in person to his tenant. He then submits proof of notification of the application to the TAL within 45 days. He collects the calculation form from the TAL, fills it in and submits it to the TAL 90 days after receipt.

Attend the court hearing

The TAL summons the 2 parties to a hearing. It hears the evidence and the claims of each party. Its analysis will determine whether the rent increase is abusive or regulatory.

Using a lawyer to contest an unfair rent increase

At any stage in the process of contesting a rent increase, the tenant is entitled to call on the services of a lawyer.

Why call in a lawyer for an unfair rent increase?

Lawyers excel in the legal field. They are a reliable and credible source of legal advice and information. They possess a high level of technical expertise and are able to resolve even the most complex legal issues.

Lawyers represent their clients in court. In addition to representing his clients, he is also an excellent advisor. He explains his clients’ rights and finds answers to their legal questions.

Which lawyer should I contact to contest an unfair rent increase?

General lawyers can handle a variety of real estate disputes. However, it is advisable to seek the help of a specialist, in this case a lawyer specializing in housing law.

The expert represents his client if the case is brought before the TAL. In addition to contesting a rent increase, the housing lawyer’s remit also includes enforcing tenants’ rights, tenant harassment, claims for repair work, rent control and lease termination.

What are the lawyer’s duties in a case of unfair rent increase?

In a case involving the refusal of an abusive rent increase, your housing lawyer will actively listen to you in order to understand your situation, whatever the context.

He also plays the role of legal advisor. As an expert in rental law, he will clear up any grey areas in the case.

He also becomes the link between landlord and tenant, and attends every rental mediation. He can also put in writing the agreements signed by the 2 parties.

Conclusion

To avoid an abusive rent increase and protect your rights as a tenant, it’s in your interest to seek the advice of a housing lawyer. He or she will provide you with all the legal advice you need to get out of the dispute. He or she will also advise you on the best way to resolve the dispute.