The long awaited official numbers have been released and I must say, I am pleasantly surprised.
For the most part the TAL (formerly Régie du logement du Québec) stands to represent and protect the tenants in Quebec. However this year it seems as though landlords are not being completely trampled over. The average increase in rent ranges between 2.3% for units rented without heating/electricity included and all the way up to 7.3% for units that are rented with heating included (percentages vary depending on the type of heating). This is not counting any ameliorations to the building, or increase in municipal and school taxes which could see the rental increases range from as high as 4.5% to 9.5% depending on the heating scenario’s.
If we use a rental amount of $1,000, and go with the logic that your units municipal and school taxes did raise by the province wide average of 5%, and you did no work to your unit or building you can see your rental income for this unit go to $1,029$ per month (increase of 2.9%). I understand as a property owner that this does not account for the added expenses/increases you may get hit with throughout the year as a property owner, but we can argue that we have seen much lower and much less favourable for the property owner.
If you are planning on raising one of your tenants rent, we strongly advise that you visit the TAL’S website and use their calculator to get an exact calculation for the rental increase per unit. When presenting your tenant with their increase you should always make sure to print out your TAL calculations and give them a copy so that they know you have not overstepped your boundaries as an owner and to properly avoid any bickering / potential case with the TAL.
Being a property owner has long been the route to financial freedom, and if you are looking for a team of realtors that can assist you with the purchase or sale of your revenue property, wether it be multi unit residential or commercial, feel free to reach out and ask us any questions you may have.