Residential landlords in Quebec face tighter rent increase margins for 2021, particularly if their buildings are centrally heated with gas or oil. Newly released guidelines from the provincial Tribunal administratif du lodgement (TAL) outline appropriate rates for various components of shelter costs in relation to 2020 thresholds, including an 11.3 per cent discount on the portion attributable to gas and a 21.6 per cent cut for heating oil or other sources of energy covered in the rent.

Rents for 2021 will also factor in slightly lower electricity costs, as the acceptable rate nudged down 0.3 per cent from last year. The TAL does allow upward increments for maintenance, service and management costs, but all more modest than last year’s allowed increases.

For 2021, landlords can pass through a 2.3 per cent increase for capital expenditures. That has shrunk from the 3 per cent increase allowed in 2020.

Under provincial rules, landlords and tenants are free to negotiate and agree to any rental rate. However, the stated rent increase margins will be taken into consideration when rent-related disputes are adjudicated at the TAL.

CORPIQ (Corporation des propriétaires immobiliers du Québec) will host an online seminar for English speaking landlords on Jan. 26 to delve further into this year’s announced rates.