Tenants hoping for some relief will be disappointed. The Tribunal administratif du logement (TAL) has published its 2025 rent indexing rate grid, and the increase is expected to be substantial.
Financial strain will likely continue to grow for households. After a significant rise in 2024, the upcoming year is set to see the highest increase in recent decades, approaching 6%.
What is the rent increase rate for 2025?
On Tuesday, January 21, the Tribunal administratif du logement announced the rent adjustment percentage for 2025. The proposed increase is 5.9% for non-heated units, before any renovations.
For a unit with a rent of $1,000 per month, this translates to an extra $59 per month, or $708 annually.
After accounting for taxes and major renovations, the TAL recommends an adjustment rate of 8.5%.
Good to know
Contrary to common belief, there is no set rate for rent increases in Quebec. Although the TAL recommends a specific percentage each year, landlords have the option to propose a higher or lower increase than the suggested rate.
Why such an increase?
Under the Regulation on Rent Setting Criteria, the TAL's calculation formula takes into account various components of the Consumer Price Index (CPI), including:
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Electricity (CPI Electricity)
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Gas (CPI Natural Gas)
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Heating oil and other energy sources (CPI Heating Oil and Other Fuels)
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Maintenance costs (CPI Maintenance and Repairs by the Owner)
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Building-related service fees (CPI Services)
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Tenant-specific service fees (CPI Health Care Services)
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Management fees (CPI Rent)
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Net income (CPI Rent)
The calculation method has faced criticism from many tenants' associations, which argue that including inflation in the TAL's recommendations is problematic. They point out that this inflation is driven by rising housing costs, which are in turn influenced by inflation, creating a harmful cycle.
What was the percentage in 2024 and in previous years?
In 2024, the TAL recommended a 4% rent increase for non-heated units, which is 1.9% less than the 2025 suggestion but nearly double the 2023 recommendation of 2.3%.
Here’s a summary of the suggested basic rent adjustments for non-heated units in recent years:
| 2020 | 1.2% |
| 2021 | 0.8% |
| 2022 | 1.3% |
| 2023 | 2.3% |
| 2024 | 4% |
Despite the basic 4% recommendation in 2024, the actual average rent increase was 7.3%.
What is the maximum rent increase allowed in Quebec?
In Quebec, there is no set maximum for rent increases. Landlords can propose any increase they consider appropriate. Tenants, however, have the right to accept or reject the proposed increase if they find it unreasonable.
If there is a disagreement over the new rent amount, both landlords and tenants can appeal to the Tribunal administratif du logement.
What influences the price of rent?
The actual rent increase requested by a landlord can be influences by several factors, including:
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Energy costs
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Increases in municipal and provincial taxes
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Higher insurance premiums
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Repair or improvement work carried out
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Maintenance and management fees
These factors help explain why rent increases can vary from one unit to another. Regarding repairs, their cost can be allocated in different ways:
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If the repairs benefit only one tenant, only that tenant’s rent will be affected.
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If the repairs benefit all tenants in the building, the increase will be divided among the number of units.
A form to calculate a reasonable rent increase
Each year, the TAL provides landlords with a calculation form to help estimate a reasonable rent increase based on their specific situation. While not mandatory, this tool can assist in streamlining the process and in negotiations with tenants.
Forecasts aligning with the outcome
Even before the TAL's official announcement, discussions about the potential rent increase were already widespread.
As early as November 2024, Desjardins predicted a significant rent increase, citing the ‘’rent’’ components of the Consumer Price Index, which was 8,3% in the third quarter of 2024.
More recently, the Corporation des propriétaires immobiliers du Québec (CORPIQ) expected an increase of 5.8%, which closely aligned with the actual outcome.
The Tribunal administratif du logement (TAL): Its role in setting rents in Quebec
The Tribunal administratif du logement (TAL) is an institution in Quebec that oversees the relationship between tenants and landlords. Every year, it publishes its rent increase recommendations, based on the criteria set out in the Regulation on Rent Setting Criteria.
The percentage determined by the TAL is for guidance only; it is neither a maximum nor a minimum that must be followed.
Additionally, the TAL intervenes to regulate rent increases when they are disputed.
FAQ on rent increases
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Are rent increases regulated by law?
Yes. While the law does not set a specific rent increase amount, landlords cannot increase rent at any time or in any manner. They must provide written notice to the tenant within the legal timeframes and cannot increase the rent during the term of the lease.
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When must the landlord send the notice of increase?
The deadlines for sending the notice of increase vary according to the length of the signed lease:
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12-month lease or longer: 3 to 6 months before the end of the lease.
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Lease of less than 12 months: 1 to 2 months before the end of the lease.
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Indeterminate lease: 1 to 2 months before the requested change.
3. How much can a landlord increase the rent?
There is no predetermined limit to the rent increase. However, it must reflect the landlord’s increased costs, such as taxes, insurance, and maintenance expenses. In case of disagreement, the TAL can intervene to make a decision.
4. Can I refuse a rent increase?
Yes. If you believe the rent increase is excessive, you can refuse it. You can either negotiate with your landlord or take the matter to the TAL.
However, different rules apply for buildings that were constructed or renovated less than 5 years ago.
5. What is the deadline to accept or refuse a rent increase?
The tenant must notify the landlord of their decision within one month of receiving the renewal notice. The tenant can then:
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Not renew the lease and leave the unit
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Accept the changes
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Refuse the changes and:
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Attempt to reach an amicable agreement with the landlord
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Appeal to the TAL
If the tenant does not notify the landlord of their decision within the given timeframe, they are legally considered to have accepted the changes.
6. How can I tell if the increase is abusive?
To determine if a rent increase is abusive, it is important to assess whether it is justified by the landlord’s actual costs. To get a clearer idea, you can:
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Check the reasons for the increase.
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Request supporting documents from your landlord.
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Use the TAL's calculation tool.
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Compare the prices with similar units on the market.
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