Duranceau Rent Reform Takes Effect on January 1

The Duranceau rent reform will officially take effect on January 1. This new method for calculating rent increases was introduced in Quebec by France-Élaine Duranceau during her tenure as Minister of Housing. It has faced criticism from tenant advocacy groups. The reform simplifies the calculation by using a three-year average of the general Consumer Price Index (CPI).

Key Changes in Rent Calculation Method

Starting January 1, property owners who undertake renovations will have the option to pass renovation costs onto tenants at a fixed rate. This fixed increase will be set at 5% per year, instead of fluctuating with the economy, amortized over 20 years. This change marks a significant shift in how rent hikes are determined.

Administrative Changes

• The Administrative Tribunal of Housing (TAL) will no longer provide yearly recommendations for rent increases.
• Instead, TAL will release updated average CPI figures by the end of January each year, reflecting the previous two years.
• A specific rate for private residences for seniors (RPA) will also be published.
• Tenants can use TAL’s online calculator to adjust their rent calculations based on taxes, insurance premiums, and renovation costs.

Previous and Projected Rent Increases

Last year, the recommended average rent increase reached 5.9%, a level not seen in 40 years. Following this, Duranceau announced a review of the calculation method in April. According to the Quebec Housing Corporation, if the new method had been in place, the previous rent increase would have dropped to 4.5%.

However, tenant groups argue that the fixed renovation cost could ultimately disadvantage renters. Previously, renovation expenses were spread over a longer period, resulting in smaller monthly impacts. Duranceau has acknowledged this potential issue in discussions submitted to the Council of Ministers, warning that vulnerable tenants, including seniors and young individuals, could be affected in their quest for affordable housing.

Despite these concerns, Duranceau advocates for these measures to encourage property owners to invest in renovations, addressing the chronic underfunding of repairs necessary for safety and livability.