Every year at this time, the TAL (Formerly known as Régie du logement du Québec) releases a calculator/grid as well as a percentage on how much you can increase your tenants rental payments so that things can be done properly and protect the interests of both the tenant and the landlord. They issue these guidelines as a way to prevent rental increases that are inflated, as well as give the owner of the property the duty to divulge why they are increasing the rent as to stop greedy property owners from raising rent without investing into the buildings they own.
Once you use the grid/calculator to prepare a fair and justified increase of rent, you must present this increase as well as your grid and calculations to your tenants and they have the right to accept or refuse your rental increase. They can refuse even though your grid is perfectly calculated and justified, just like some tenants accept increases without justification or calculation grids.
Our advice? – As a property owner it is your duty to cover your behind as no one will do it for you We suggest that not only do you create your grid and calculate your increases properly, that you do so every year and you keep digital and paper copies for as long as your tenant remains your tenant. We also recommend that you sign the document with your tenant to make sure that you have an acknowledgement of receipt. Far too often property owners are busy and send these notices by mail or certified mail without communicating with our tenants or explaining to them why exactly we are raising the cost of living. We believe that by visiting your tenants in person, sending them a digital copy + getting them to sign a paper copy and explaining to them exactly why they are being increased goes a long way for your arguments, your relationship with your tenant and your defence should the tenant decide to refuse your increase!
Step by step process:
1. Download the grid/calculation sheet here: https://www.tal.gouv.qc. ca/fr/actualites/detail?code= diffusion-des-pourcentages- applicables-a-la-fixation-de- loyer-2024
(Please note official version should be released by January 18, 2024)
2. Take the time to sit down, and properly fill out the calculation sheet to be able to get to the correct amount per unit, per building.
3. Print a copy of each calculation sheet for every unit you own and save a digital copy.
4. Contact your tenants and set up in person meetings of 30minutes to go over the increases and have them sign the documents (not to accept but to acknowledge delivery and explanation)
5. Let your tenants know they have 30 days from the time and date of signature to respond to your rental increase.
6. Wait for the response.
We believe that by following these steps, your tenants may refuse your increase and start a file at the TAL, but you are well protected and follow your duties as an owner and that will serve you well if they do decide to refuse your increase.
Please note that we do still suggest that you do all your own research with the TAL to better understand your obligations as a landlord! You can always contact us for more information!