As is the case every year, the period for rent increases has arrived. This can often lead to tension between landlords and tenants, so it’s important to understand the relevant legal information to avoid unnecessary stress.
What is allowed when it comes to rent increases? What are the rights and responsibilities of both tenants and landlords? Here are the answers to these questions.
The rent increase notice for a residential lease
When a lease is being renewed, the landlord typically requests a rent increase. To do so, they must provide the tenant with a renewal notice, specifying the proposed increase in one of the following ways:
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The new rent amount
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The amount of the increase
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The percentage increase
Dates and deadlines to respect according to the law
The rent increase notice must be delivered following these legal timelines:
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For a lease of 12 months or more: between 3 and 6 months before the lease ends.
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For a lease shorter than 12 months: between 1 and 2 months before the contract expires.
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For an indefinite lease: between 1 and 2 months before the proposed change date.
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For a room lease: between 10 and 20 days before the lease ends.
Once the renewal notice is received, the tenant has 30 days to either accept or decline the proposed rent increase. If no response is given, the lease will automatically renew with the proposed increase.
What is the maximum amount for a rent increase in Quebec?
Contrary to common belief, there is no set maximum amount for a rent increase in Quebec. However, the increase must be considered reasonable.
Each year, the Tribunal administratif du logement (TAL) provides a suggested increase rate based on various factors, to assist in facilitating negotiations between tenants and landlords.
What is the recommended percentage for rent increase in 2025 in Quebec?
In 2025, the TAL recommends a rent increase rate of 5.9%. This rate applies to non-heated housing, before taxes and major renovations are factored in.
This percentage is based on the Regulation on Rent Setting Criteria, which takes into account various components of the Consumer Price Index (CPI).
What criteria is this based on?
The recommended rent increase rate is determined based on several components of the Consumer Price Index (CPI), including:
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Electricity
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Gas
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Oil and other energy sources
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Maintenance costs
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Building-related service fees
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Tenant-related personal service fees
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Management fees
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Net income
Rent increase due to major renovations
When significant improvements or renovations are made to a dwelling or building, a landlord may apply an additional rent increase. This applies to work that involves repairing or modifying key building elements, such as:
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The roof
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Insulation
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Plumbing
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Foundation repairs
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Floor varnishing
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Etc.
The rent increase will then be calculated to reflect the capital expenses incurred, based on the applicable rate set by the TAL.
Can a landloard demand a higher rent increase?
Yes, a landlord can request a rent increase higher (or lower) than the recommendation provided by the Tribunal. However, if the proposed increase is deemed excessively high, it is likely that the tenant will contest it, especially if it lacks proper justification.
Calculating the rent increase in 2025
To assist in determining a fair and reasonable rent adjustment, the tribunal administratif du logement offers an online calculation tool (in french only). By entering specific data, both tenants and landlords can get a clearer idea of what the rent increase should be.
The landlord must provide the following information:
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Property details (address)
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Property income:
- Monthly rent
- Other income from property operations
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Operating expenses of the property:
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Municipal and school taxes
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Insurance
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Energy costs
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Maintenance costs
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Building-related services
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Management fees
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Service fees related to tenants (for senior residences, if applicable)
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Major repairs and improvements related to property or dwelling, if applicable.
Can a rent increase be refused?
Yes, a tenant has the right to refuse the rent increase proposed by their landlord. Regardless of the amount stated in the notice, the tenant can contest it and cannot be evicted for doing so.
Tenant: How to refuse and contest a rent increase?
To make the refusal legally valid, the tenant must respond to the notice sent by the landlord. The tenant can:
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Refuse the proposed increase and choose to renew the lease.
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Decide not to renew the lease and move out at the end of the term.
In either case, the tenant must inform the landlord within one month of receiving the notice.
If the tenant refuses the increase but wishes to remain in the dwelling, two outcomes are possible:
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The landlord and tenant may reach an amicable agreement that works for both parties.
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If no agreement is reached, the dispute can be brought before the Tribunal administratif du logement (TAL).
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The amicable agreement
A tenant can contest a rent increase notice and still wish to remain in the dwelling. In such cases, both the tenant and landlord should first try to reach an agreement on the increase without resorting to the Tribunal.
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Going to the TAL
If the parties cannot reach a mutual agreement after multiple discussions, the case can be taken to the Tribunal administratif du logement (TAL). The responsibility to take action then lies with the landlord, who must submit a request to modify the lease within one month of the tenant’s refusal.
In this request, the Tribunal will provide the landlord with the necessary form to set the rent. The landlord must then submit detailed information about the property’s income and savings within 90 days.
Afterward, both parties will be summoned for a hearing. The landlord must provide supporting documents to justify the rent increase, such as:
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Bills
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Account statements
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Any documents that confirm their financial situation
Additionally, the landlord must send a copy of the form to the tenant and prove this submission to the Tribunal.
What can the Tribunal’s decision be?
After reviewing the case, the Tribunal will issue a written decision and send it to both parties. It will also determine the new rent amount.
If the Tribunal rules in favour of the landlord, any arrears owed by the tenant since the lease renewal will be due within one month. For example, if the rent increased by $20 per month over the past four months, the tenant would owe a total of $80.
Additionally, either party has the right to appeal the Tribunal's decision. The person filing the appeal must demonstrate that an error was made and must submit their request within one month of the Tribunal’s ruling.
An exception for buildings less than 5-years-old
If you live in a building that is less than 5-years-old, different rules apply. If your landlord has marked the appropriate box in section F of the lease, they are legally allowed to increase the rent by any amount they choose.
In this case, the tenant cannot contest the increase before the Tribunal. If the tenant refuses the increase, they must leave the dwelling at the end of the lease.
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