The Quebec Rental Board’s approved rent increases for 2009-2010 reflect dramatic spikes in heating costs during the past year. In buildings with oil furnaces, where the costs are paid by the landlord, tenants are in for a whopping 5.1% hike. Where natural gas is used, the jump is a more moderate 1.8%, and 0.8% with electric heating. Where the tenants pay for their own heat, the increase is 0.6%.

These increases, however, represent only a portion of what a landlord may seek. The Rental Board has guidelines that allow for additional rent hikes based on repairs or improvements to the building. So, for example, if windows are changed or a roof is replaced, those costs, as well, are passed on to tenants.

Project Genesis, the storefront community organization that assists people on low income, handled about 800 in-person interventions related to rental increases last year, which is pretty typical. They encourage tenants to know their rights and to insist that landlords explain and justify whatever increase they demand. The Rental Board does require that any expenses being passed along to tenants be documented.

With most leases in Montreal due for renewal on July 1, tenants are beginning to receive notices of their new rents. Unfortunately, Project Genesis reports that it is common practice for landlords to ask for higher increases than they are entitled. Fortunately, many landlords expect their tenants to challenge the amount and are open to negotiation.

Taking into account the Rental Board’s suggested increase and whatever improvements of which they are aware, Genesis counsels tenants to refuse increases that appear unreasonable, while making clear their willingness to negotiate. If a landlord is reluctant to explain why they are asking for an increase above those approved by the Board, tenants have reason to be suspicious.

Project Genesis workers and volunteers are available to provide advice and information to tenants. They have a comprehensive tip sheet that details the rights and obligations of tenants and landlords. One of Genesis’ interns even developed software that calculates appropriate increases, taking into account repairs, insurance premiums, and municipal tax rates. Workers will review leases with tenants in order to explain their provisions. They also have the appropriate form letter to contest a proposed increase.

There is no question that this year will present challenges to tenants, particularly those who reside in oil heated buildings. Genesis does point out that the past year has been a difficult one for landlords, as they endured increased costs. The workers hope that, considering both parties are affected by the economic crisis, fairness will prevail and rents can be determined that will enable landlords to realize their costs and tenants to afford adequate housing.

 

Anybody with questions regarding leases can visit Project Genesis at 4735 Côte-Ste-Catherine Road (corner Victoria), or call 514-738-2036.

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Federation CJA allocated close to $140,000 to Project Genesis for 2008-2009.

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Federation CJA is a registered charitable organization pursuant to the Canadian Income Tax Act - Registration number: 106702251RR0001.
Federation CJA is a 501c(3) non-profit Community Organization - 98-018 3709.
All donations to Federation CJA are tax-deductible in full.