Info CORPIQ (video)
A few days after the unveiling of the different scenarios of the Tribunal administratif du logement (TAL) concerning the possible rent increases for the year 2023, I will not hide from you that the Corporation des propriétaires immobiliers du Québec, CORPIQ, has been on all forums to explain the repercussions of the announced scenarios, but especially to make sure that the general public and the tenants have access to good information.
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I am speaking to you today to tell you that 2023 is certainly one of the years where the increase will be the highest in the last decade. At the same time, it's not surprising because inflation increased to 7% over the last year in the construction sector. So, in a way, the scenarios announced by the Tribunal ensure that everyone is doing their part; owners and tenants are absorbing part of an economic situation that is not easy. We could point out that in the construction sector, we have experienced an inflation rate of 7% and the previous year it was 22%, so it's been two years in a row that maintenance, renovation costs, materials and labour have been higher. You are therefore called upon to adapt to circumstances that are not easy for rental owners.
Now the increases for 2023, I reiterate, what is announced by the Tribunal administratif du logement (TAL): 2.3%. This percentage does not include the municipal tax increases which are at an all time high this year throughout Quebec, it also does not include the increases in insurance premiums and especially the challenges related to your investments in major renovations which have a direct impact on the rent increases that you will be able to grant to your tenants this year. You also know that you have until March 31st to send your notices. We recommend that you make your calculations carefully and make sure that you have in hand the increases and differentials with last year. For municipal and school taxes, there is a calculation formula that can help you on the CORPIQ website. If you have any questions or concerns, you can communicate with our teams to this effect.
Over the next few days, it is important to follow the process recommended by our advisors at CORPIQ, but above all, make sure you always have a dialogue, both in writing, but also by explaining the increases this year, which are among the highest in recent years. In spite of the inflation that also affects you, we don't live on a desert island, so essentially, I think it's an opportunity to exchange and find the right compromises and especially to make sure that the rental stock remains interesting so that you, as a landlord, also find the right environment and the right compromises.
Please know that CORPIQ will continue to explain these issues over the next few weeks and we will make representations on your behalf because we obviously consider that there are changes that must be made to the calculation formula. As you know, in terms of renovation, the calculation formula discourages investments in capital assets that, for the year 2023, will be amortized over 26 years when we know that these investments often have a shorter life span than that. These calculation methods really need to be updated. This is why we are making representations to the Quebec government to review and promote them, but above all to keep our rental stock as attractive as possible, both for tenants, but also for you because you want to do your job as a landlord in the best possible way.
So on that note, I wish you a nice day and above all, if you have anything to say, know that your association is there for you. Thank you.