Ali Kamruzzaman has lived in the same apartment in Montreal’s Parc-Extension neighbourhood for 28 years with his wife, and they plan on staying despite the years of neglect he says has left his home in disrepair.
There are cracks in the ceilings and walls. Busted countertops. Warped cabinets that don’t close. Mould in the bathroom. The list goes on, which added to his shock when he received an unexpected notice from his new landlord: a $150 rent increase.
“They like to collect money, but don’t like to spend money,” the 70-year-old said.
He refused, and instead offered $50 — an amount that nearly doubles the provincially recommended rent increase given the amount he was already paying.
Kamruzzaman isn’t the only tenant in the area facing similar pressure.
A local housing advocacy group, the Comité d’Action de Parc-Extension (CAPE), says tenants of 18 neighbouring buildings have received rental increase notices of five to 20 per cent from two of the new landlords who rely on the same property manager.
Tenants across 18 buildings in Parc-Extension received significant rent increases from their landlords who use the same property manager. A neighbourhood housing committee says rents are reaching an all-time high in the area.
‘Enormous increases’
The landlords purchased the buildings last summer, which are located on L’Acadie and D’Anvers avenues, and Birnam Street.
CAPE has opened more than 50 files from tenants all looking to contest the landlords’ increases. Co-ordinator Amy Darwish said tenants’ offers are being refused, with counter-offers still falling in the $50 to $80 range which, she added, “are still enormous increases.”
She said people paying a lower rent, like $800 a month, are facing increases that go outside their budget, adding rent is at an all-time high in the borough of Villeray–Saint-Michel–Parc-Extension.
People who have lived in the area for decades are now making tough financial choices with the little money they have left after rent is paid, she said.
The organization showed CBC News examples of rent increases similar to that Kamruzzaman is facing.
For example, two renters were also told to pay $150 extra per month, representing a 20.58 per cent increase for one and an 18.75 per cent increase for the other.
Landlord defends rent hikes
Marc Lemieux is among the two building owners. He has more than half a dozen buildings on Birnam Street and D’Anvers Avenue. In total, the two landlords have more than 165 units, according to CAPE.
Speaking on behalf of himself and the second landlord, he said, when they bought the buildings, they were met with over 350 non-conformity notices over safety and security concerns issued by the City of Montreal.
Lemieux provided copies of the accountants’ ledger showing the amount invested in the buildings. The total amount invested is $3.1 million, but some costs are not taken into account by the calculation tool provided by Quebec’s housing tribunal, the Tribunal administratif du logement (TAL).
In total, $2.1 million in costs are used to justify the rental increases in accordance with the TAL calculator, he said. He said the average rent increase issued to tenants was nine per cent, and only a small number saw a 20 per cent hike because more work is needed on certain buildings.
This is Montreal16:10How to know if your rent increase is legit
Rent increases notices have gone out over the past few weeks and Montreal renters are deciding how to respond. This year, landlords and renters will be working with a new formula from Quebec’s Housing Tribunal that redefines what costs can be passed onto tenants. We’ll break down what’s changing and get answers to some of your questions about rent increases.
In all, 89 tenants were issued rent increases of between five and 20 percent.
“The problems were related to the heating,” Lemieux said in an interview.
“So we addressed these issues, we changed the furnaces, we secured access to all units, we installed surveillance cameras, we converted the factory-made panels to breaker panels. We adjusted the system, we replaced the windows. Then we implemented an extermination program.”
Reasoning needed for rent raise over 3.1%
Quebec’s housing tribunal recommended a 3.1 per cent rent increase for apartments that have not undergone major renovations at the start of the year — a figure well below 2025. For leases that renewed before April 1, the TAL recommended a rise of 4.5 per cent.
To arrive at the 3.1 per cent guideline — which landlords and tenants use as a reference point when negotiating rent increases — the tribunal relied on variations in municipal and school taxes and insurance costs.
Housing lawyer David Searle said it’s not uncommon to issue pricier increases, but the reasoning beyond 3.1 per cent must include proof of expense increases.
“The tenant has to be convinced that there was either work done or tax or insurance increases beyond 3.1 per cent that justifies such an increase,” said Searle.
There are many buildings in Montreal that require a lot of investment, he said, but if tenants feel the increase is unjustified, they should contest within 30 days. Otherwise, he added, maintenance and renovations come at a cost to everybody.
A lot of landlords and tenants do settle on rent increases because both parties face challenges when taking matters to the tribunal, said Searle, who encouraged people to pick up the phone and negotiate.
As for Kamruzzaman, he said he’s had similar disagreements with previous landlords, but he has always paid his rent on time since first moving in in the late 90s.
He said, when it comes to getting things repaired, his calls go unanswered. But when it comes to rent, he managed to reach an agreement of $50 extra per month.
