Please remember that the following figures are only suggested and the true rent increase, following the Régie du logement (rental board) regulations, is specific to each individual dwelling. This specificity means that side-by-side apartments, substantially the same or even almost identical, could have legal rent increase rates that are not the same.

Why can this be so?

- The dwelling could have had repairs that did not occur to the other.

- The other dwelling could have been renovated differently.

- The legal ownership could be under different laws.

- Rent increases in the past could have been at different rates.

So your home could possibly have a dissimilar rent from another 'equal' dwelling.

Another lesser-known but important factor is that the rent adjustments put out by the Régie have several components. These are the rate adjustments in the press release, the tax increases factored in and divided among all tenants and spread out monthly over the term of the 12 month lease, insurance rate increase, major repairs amortized, etc.

Jean-Pierre LeBlanc, director of communications for the Régie, was interviewed this week, and he pointed out to me that “the rent increase is not 'cut-in-stone'. It may be different for each tenant.”

Now, what you’ve all been waiting for: rent adjustments for 2007:

- Electrically heated dwelling (heat included with the rent): 1.1 per cent.

- Gas heated dwelling (heat included with the rent): 0.4 per cent.

- Oil heated dwelling (heat included with the rent): 1.4 per cent.

-Non-heated dwelling (tenant pays own heat costs): 0.8 per cent.

Variations in taxes are not counted in the above rates. Tax increase will be extra.

A rule of thumb, provide by the Régie, is that for every 5 per cent tax increase, divided among all tenants, and spread out over the 12 months of the lease, an additional increase(0.7 per cent) will be approximately as follows:

Rent adjustment rates with tax increase example:

Electric heat: 1.1% + 0.7% = 1.8%. With tax increase 5%.

Gas heat: 0.4% + 0.7% = 1.1%. With tax increase 5%.

Oil heat: 1.4% + 0.7% = 2.1%. With tax increase 5%.

Non-heated: 0.8% + 0.7% = 1.5%. With tax increase 5%.

Now you can see why I stated earlier that a rent increase is absolutely not 'cut-in-stone'.

Your individual rate of increase for any specific dwelling can be and most probably will not be the same. Consult the City for individual tax increases.

I will now address several concerns that both tenants and landlords have had at the Westmount Legal Clinic.

What is the rate of increase for any major repair?

This rate is 4.2 per cent. It translates to an additional increase in rent, for every $1,000 spent, of $3.50 per month factored in and divided among all tenants and spread out monthly over the term of the 12 month lease. This may not seem like much and a quick calculation says that a landlord would need 20 years to recoup his investment.

LeBlanc underlined that this rate “is subject to a yearly, increase similar to compound interest,” so that the 4.2 per cent becomes a hidden, for example, 4.4 per cent the next year. That is the rate of return on a major repair is increased each year in a similar fashion as compound interest increases interest payable on accrued capital. It does not decrease, so the landlord will have a larger major repair increase in each succeeding lease built upon and added to the former major increase rate. Instead of major repairs, as on first sight requiring 20 years for recuperation, compound interest reduces this time period.

And, of note, and an important point if there are complaints about this rate, is that when have you ever heard of any landlord reducing rent after the major repair has been paid for. It just does not happen. A rent increase can thus be added to a completely paid for repair.

Landlords do not share any increase in equity. Nor is a part of the profit when a building is sold. A competent landlord purchases a building such that little or no risk occurs to the mortgage. A bank will not loan or will limit cash availability to an 'at-risk' building investment. This is part of the all-round safety net accorded to real estate investments.



Q. The building taxes have gone up tremendously. As a landlord I will have a difficult time.

A. Taxes can usually be paid in installments. A landlord gets all increase in taxes back from tenants. If interest payment should happen, related to installment paying, consult your accountant. Tax deductions exist. Management costs are factored into any rent increase.



Q. I am a tenant and there has been a lot of work done to the garage, and I mean a lot. I do not have a car. Do I have to pay for this?



A. This would appear to be a major repair on the part of the landlord. Normally, a major repair, related to the whole building is amortized and every tenant has his own part to pay, as per the rules of the rental board. It is divided between all tenants.

If you do not have a vehicle, and the garage repair is not related to common areas, you can be reasonably certain that your rent will not be increased related to the garage repairs.



Q. What are the choices a tenant has when the increase notice arrives?

A. The choices a tenant has to answer a rent increase notice are as follows:

- Agree to rent increase and any other lease modification via registered mail.

- Disagree with either or both increase or modification via registered mail.

- Accept either one of the above, but not the other, via registered mail.

- Not answer. The lease is renewed as in the landlord’s letter.

- Not accept the increase. Not renew your lease via registered mail.

Whatever choice you make, you must keep a copy, and have proof the landlord received your reply. Registered mail is preferred but a copy of your response, signed and dated, received by the landlord, is sufficient.

If your landlord does not put in his letter of increase, an option to renew but not agree to the proposed increase, it is a very easy indication of a less than honest rent increase letter.

Some unscrupulous landlords give only two choices—renew the lease and accept the rent increase or cancel your lease move out. Not honest and not all your valid legal rights. It is usually done on purpose, systematized, year after year. I have examples of this. Please send me others via fax, email, or drop them off at the clinic.



Q. What are the rules regarding notification of rent increase?

A. On a one-year lease the rent increase notice can be sent three to six months before the start of a 12 month lease. The tenant has one month to respond. If the tenant does not answer, the lease is renewed as in the notice. The tenant must notify landlord to cancel (not renew) the lease.

Advice to all concerned.

Use the Calculation Form from The Régie du logement (Rental Board).

Fill it out and give it to the tenant or provide a blank copy to the landlord.

Get the annual Rent Adjustment amounts from the rental board. Include it with notices or response letters.

Negotiate in good faith with the landlord or tenant. You can do it. Give it a shot.

If you are a landlord and must go to court to decide the rent, you must use the annual 'RN Form' only available from the rental board to assist in the decision. Get it and complete the form.

Information relating to all of the above may be obtained from the rental board at 514-873-2245 or www.rdl.gouv.qc.ca/english">www.rdl.gouv.qc.ca). The 'Calculation 2007' is on the website or available in hard copy in early February. The 'RN Form 2007' will be ready at the rental board, but not on the website, very soon. Other telephone numbers of use for municipal and school taxes are Westmount 514-989-5234, www.westmount.org">www.westmount.org">www.westmount.org), FAQ. English and French School Board taxes 514-384-1830 Ext. 5034. www.cgtsim.qc.ca">www.cgtsim.qc.ca">www.cgtsim.qc.ca).





This is a general overview only. Please seek legal counsel or come and see us for expert advice or from a government source as required. Ted Wright is coordinator of Westmount Legal Clinic, every Wednesday at 3:30 p.m. at the Westmount YMCA, 4585 Sherbrooke St. W. Send questions to tedquestions@yahoo.ca, via fax to 514-277-8403, or P.O. Box 48101, Montréal, Qc., H2V 4S8. Please provide a phone number to verify identity. Your name will not be published without your permission. Mr. Wright contributes to various media in Canada, both print and electronic. Should you wish personal, more extensive assistance, professional fees may apply.