The yearly rent increase time period termination (31 Dec. 2006) is almost upon us.

As a tenant and landlord, it is important to be aware of all documents and procedures that will be required to adequately and accurately allow you to either prepare for the rent increase or know if the landlord is requesting an increase in line with accepted principles.

Firstly, obtain the following documents. These are not the forms necessary for 2007 but are similar and will be an excellent learning starting point:

1.) Calculation 2006 (on the Internet or from the rental board).

2.) Rent Increase press release 2006. (on the Internet or from the rental board).

3.) RN Form 2006 (Information required for the fixation of the rent; at the rental board only).

The calculation form will give you an overview of the types of information that can be included in the calculations to raise the rent to assist your accountant or yourself. For tenants, this form will allow you to know and verify the categories and 'plugged-in' amounts which contribute to rent increases.

Next, the Rent Increase press release is the first line tool so that the starting point in rent increases can be known. This shows “ballpark� percentages which, in the normal course of events, a too-great increase or a too-little rent increase will be more evident from the get go.

And thirdly, the RN Form, or the form necessary for the fixation of the rent. The RN Form is an amalgam of French and English terminology to shorten the longer English name. This is the form used by the landlord and which must be filed at the Régie du logement (rental board) for use at the rent increase hearing. When this is completed adequately, it permits the court and all persons connected to follow the logic of expenses incurred which contribute to the rent increase.

For a tenant, it is quite a useful tool when combined with the other two. It makes an easier job of tracing dollars expended in the upkeep of the building, or that which pertains to only one or specific units in a building.

All of the above is to point out what you need to know and have on hand to ensure the right increase amount is entered in the increase letter.

A very quick list of pointers is as follows:

a) All tax records. Both 2006 and 2007.

b) School tax records from the last two relevant years.

c) Insurance rates and payments 2006 and 2007.

d) Any and all repair costs and bills.

e) Expenditures which contribute to management and care of the building.

But I highly and absolutely recommend that tenants and landlords read the above-mentioned documents to ascertain the categories, specifics and relevance of your claimed expenditures. A rule of thumb is “If a cash outlay is for the benefit of a building, include it.� But read and follow the documents.

The information can be obtained from the Régie du logement (rental board) at www.rdl.gouv.qc.ca">www.rdl.gouv.qc.ca">www.rdl.gouv.qc.ca or 514-873-2245. Explanations, assistance etc., is available from the rental board, your lawyer, or ourselves.

So remember, get your info together now. There are legal time delays which must be respected.

Also, energy costs have been fluctuating wildly. Recently these are in a more reasonable range. Remember that the cost of energy will be averaged over the year, so a 20 percent increase will be divided on a monthly basis and will only form a part of the overall rent increase amount.



Evaluation contestation



This question was asked at the Clinic, and via e-mail several times: “How do we assist ourselves in the contestation process?�

You must file your contestation in the manner and time delays required by law. Please speak to the City for these details.

Next, you should speak to your neighbours. See what is going on with their buildings.

It is a realistic and practical fact that evaluators cannot visit every single building. However, they do have rules and guidelines that must be followed. We are all human beings. Little things (or big things) can slip by.

At the Clinic, the most important complaint was that similar buildings had wildly different evaluations.

The usual justification for disagreement with the evaluation was that one building had major renovations and the other did not.

Our evaluation quick list of pointers:

a) Photos of similar buildings.

b) Inside and outside photos if possible.

c) A history of evaluations.

d) Building permits (yours and others’).

e) Witnesses (both landlords would be great).

f) Floor plans.

g) Square footage proofs, etc.

h) Your complete list of renovations, repairs and proofs.

i) Speak to City. Follow all directions, forms, signings, legal delays, etc.

j) Countervailing expert witness (evaluator, building inspector etc.).



But please remember that there has been a North America-wide property boom, which is just now going bust. Consequently, evaluations do rise and with some justification. Prepare as well as you can. Be forthright and clear in any explanation. Your proofs and witnesses are the key.



Repossession of a dwelling



For any legal repossession which will take effect on 1 July 2007, the time delay expiration to send a legal letter is fast approaching.

In a one year lease, the last day to send the letter of repossession is Dec. 31.

There is no law which says you must wait until the last moment. The letter can be done at any time as long as you do follow the legal delay, i.e. do not send the letter after Dec. 31, or it will not be legal.

Without getting too much into the particulars, a landlord has the right to repossess his children or his parents or even an ex-spouse. There are limitations, exclusions and rules to follow. Please consult your lawyer, The Régie du logement or a legal clinic.

Remember that this is an exception to the normal right to remain in the premises (Article 1936 CCQ). This law is both an affirmation of property rights and also a reasonable limitation to abuse by a landlord, which harms society as a whole.

Should a landlord illegally complete a repossession and never move in or never have had the intention of moving in or go directly to a new tenant then damages and penalties may occur.

We have an on-going case right now. The particulars are that a dwelling was repossessed. It was re-rented to students. The increase in rent from one tenant (the repossessed) to the next (the students) was $500 per month. The former tenant (the repossessed) has a new rent for a similar apartment, in the range of $600 per month. It has now been approximately 16 months since the bad faith repossession and two tenants later.

When it gets to court, just the damagers for the first repossessed tenant will be in the range of $12,000, and this does not include future damages (limit $60,000).

The proofs do exist. The landlord is in bad faith. He will pay in court. He may even get punitive and exemplary damages.

The landlord obviously did not act in good faith. He availed himself of a lawyer. His lawyer made an offer to the bad faith repossessed tenant.

I was personally shocked when I saw the amount offered. Wait for it… $1,500.

The tenant has suffered and will suffer financial damages in amounts greater than $12,000 and the lawyer made an offer of only $1,500. Totally unrealistic in the circumstances. This landlord may suffer penalty and damages up to $60,000.

If this landlord had arrived at our doorstep one year ago, I would have said to start with an offer of $10,000. Proof does exist which clearly shows the landlord acted in bad faith. He will most probably suffer from accepting this advice.

When you check the rise in evaluation and the raises in rent he has done, you see why the landlord acted illegally and without morality. He will pay through the nose when it gets to court, but also will probably end up with profit when the building is sold. The law and its penalties, are, in my opinion, out of date with the times and amounts awarded for bad faith.

Nonetheless legal rights do exist for landlords. It is dramatically worth the time and effort to follow the law. We have two legal repossessions, signed, sealed and monetary compensation agreed upon, since September.

So then if you are a landlord be aware of the following:

a) You have rights to a legal repossession.

b) Respect the legal delays pertinent to the lease term.

c) You will most probably need to pay a legal indemnity.

d) You will be awarded this repossession by the court (Régie du logement).

If you are indeed acting in good faith, do not fear the law. It is there both to assist and protect your rights. Just get the right info and use it. You’ll be happy you did.

At the legal clinic, we have had a hand in negotiations which ended litigation in a few similar or different cases. The amounts settled upon were: ($10,000, $15,000, $8,000, $20,000, $22,000, and $20,000 and $5,000) These were under different circumstances, but in light of reality and proofs, a good choice was made. You see the variation in amounts and circumstances. The law was used to terminate or avoid litigation.







This is a general overview only. Please seek legal counsel and or expert advice as required. Ted Wright is coordinator of the Westmount Legal Clinic, every Wednesday at 3:30 p.m. at the Westmount YMCA, 4585 Sherbrooke. Send questions to tedquestions@yahoo.ca or via fax to 514-277-8403, or P.O. Box 48101, Montréal, Qc., H2V 4S8. He contributes to various media in Canada, both print and electronic. Should you wish personal, more extensive assistance, professional fees may apply.

Extensive e-mailing requires a great deal of time. He may also be heard on the Know Your Rights legal show Saturdays at 2:30 p.m. on CINQ-FM, 102.3.