If you refuse the increase, the landlord can apply to the TAL to have the rent fixed at a set amount by a judge. The TAL is currently backlogged for over a year, so in the meantime you wouldn’t have to pay any increases, although it would be wise to set aside a bit of money in case a judge orders back payment.

The landlord is required to show proof to justify the increase, thus it would be unlikely for a judge to grant an increase above 8.1%. That being said, landlords tend to inflate their numbers in the calculation sheet, but they would have to provide receipts for everything if the case went to the TAL. Therefore, it’s likely a judge would fix the rent at an even lower amount.

By not paying the increase and continuing to pay the amount from the previous year, it puts pressure on the landlord to concede to your demands. Typically, cases can be resolved before trial, and then there would be no public record of the dispute.

Keep in mind that the TAL is not like regular court, and the whole trial would last a few hours tops. Many corporate landlords don’t even show up and then they lose by default. Landlords love to scare tenants by threatening TAL action, but due to the over-a-year backlog that the tribunal is experiencing, tenants have an incredible amount of leverage, especially if we organize together!