A significant development could reshape the landscape of our industry. The long-awaited bill on housing, Bill 31, was tabled last Friday, and it carries implications that we, as investors and landlords, need to understand.

Q: What changes does Bill 31 propose regarding lease assignments?

A: If passed, Bill 31 will make it easier for landlords to refuse a tenant’s request to assign their lease. Currently, a serious reason is required for such a refusal. However, under the new bill, landlords will have the power to terminate the lease outright.

Q: Why is this change important?

A: This change addresses complaints from several landlords about tenants using lease assignments to limit rent increases. Housing Minister France-Élaine Duranceau argues that controlling rent increases should not be the responsibility of tenants.

Q: How does Bill 31 affect the F clause?

A: Clause F, already present in leases for new units, allows landlords to raise rents without being subject to the Housing Administrative Tribunal’s grid. Bill 31 stipulates that landlords will need to indicate the maximum rent for the next five years in the lease, providing tenants with greater predictability.

Q: How does Bill 31 aim to limit abusive evictions?

A: If a tenant receives an eviction notice and does not respond before the deadline, the default position will be that the tenant refused the notice. It will then be up to the landlord to demonstrate that the eviction request meets the criteria.

Q: What changes does Bill 31 propose regarding compensation for evictions?

A: Landlords who evict tenants will be required to compensate them with one month’s rent for each year of continuous residence in the dwelling, up to a maximum of 24 months. This is a significant increase from the current compensation of three months.

Q: Who bears the burden of proof in eviction cases under Bill 31?

A: The burden of proof will shift to the landlord in cases where a tenant believes they have been evicted for invalid reasons. If the bill is passed, it will be up to the landlord to show that they have acted in accordance with the law.

In summary, Bill 31, if passed, will introduce significant changes to lease assignments, rent increase regulations, and eviction procedures. Call Votre Equipe Immobilier to make the most of these changes that could greatly impact the commercial real estate landscape.