Quebec housing groups worry about new plans for how rent increases are calculated

Housing advocates in Quebec are concerned about the new reno and repair rules for landlords.

Housing groups in Quebec are sounding the alarm about how rent increases are calculated because soon, tenants could be on the hook for more of the costs of building repairs and renovations.

This year, the recommended rent increase in Quebec was just under 6 per cent, the highest the province has seen in decades.

Housing groups like Project Genesis worry it’s about to get worse for tenants.

“Action is needed that is going to protect tenants. And this is going in the completely wrong direction. It is protecting landlords’ investments,” said Margaret van Nooten, a staff member of Project Genesis.

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They’re concerned about changes to the rules for setting rent in Quebec, laid out in a recent draft regulation by former housing minister France Elaine Duranceau.

Part of the rent increase goes to building repairs and renovations, and if it passes, landlords will be able to pass on 5 per cent of those costs to the tenant. Even though it would be amortized over 20 years, it’s a higher increase than previous years and some feel the extra burden is squeezing renters who are already having a tough time making ends meet.

“We feel that it is sort of becoming this snowballing effect that is going to have an even greater impact on rising rents,” said van Nooten.

In previous years, calculating what a landlord could pass on for repairs followed a complicated formula.

Amelia Benattia, spokesperson for new housing minister Sonia Bélanger, said making it 5 per cent will be simpler for everyone and will lead to fewer cases before Quebec’s housing tribunal.

“If we do not reinvest in what already exists, some housing units are at risk of becoming uninhabitable and leaving the market,” said Benattia. “In this context, even if we build more, we would not actually increase the supply of available housing.”

The head of the Quebec Landlords’ Association (APQ) said he’s happy the government is simplifying the process but said the 20-year amortization period doesn’t make sense, especially for repairs like replacing water heaters.

“It does not take into account the interest and the fact that we have to change them every ten years. So, for some of the repairs that we’re going to make, it doesn’t compute,” said Martin Messier, president of the APQ.

Consultations on the draft have ended.

The housing ministry said it’s now analyzing the recommendations made by community organizations.