Housing and Property

Renewing a Residential Lease and Rent Increases

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Quebec has laws about renewing leases and rental increases. Landlords must follow specific rules before they can raise the rent or change the terms of a lease.

The door of an apartment in Montreal.

Is a lease renewed automatically?

Yes. When a residential lease ends, it is automatically renewed on the same terms unless the landlord has taken steps to change the terms.

The tenant, but not a sub-tenant, benefits from this automatic renewal.

What does a landlord have to do to change parts of the lease when it is renewed?

A landlord who wants to change a lease – for example, to increase the rent – must send a written notice to the tenant. The deadline for sending this notice depends on the type of lease.

Example: Claude is a landlord. He wants to notify his tenants that their monthly rent will increase by $10 per month.

Length of Lease

Deadline for Notice

Example

Fixed term lease of 12 months and up

3 to 6 months before the lease ends

If the lease ends on June 30, 2025, then Claude must send his notice to the tenants between January 1, 2025, and March 31, 2025.

Fixed term lease of less than 12 months

1 to 2 months before the lease ends

If the lease ends on November 30, 2025, Claude must send his notice to the tenants between September 30, 2025, and October 31, 2025.

Indeterminate term

1 to 2 months before the proposed change to the lease

If Claude wants to implement the change to the lease on May 30, 2025, he must send his notice to the tenants between March 30, 2025, and April 30, 2025.

When is a notice of rent increase legally valid?

A notice of rent increase must contain all this information:

  • the proposed rent increase, which can be written down as the new rent, the increase in dollars, or the increase as a percentage,
  • the length of the new lease if the landlord wants to change the length,
  • any other proposed changes,
  • the tenant’s three options for responding to the notice and what happens if they don’t respond,
  • the tenant’s rights, duties, and options if they refuse the changes, including how much time they have to refuse.

Note: the notice must also be written in the same language (French, English, etc.) as the lease and sent to the tenant’s address as indicated on the lease.

For landlords, the Tribunal administratif du logement (TAL) has a model notice for rent increases and other changes to the lease.

What happens if a notice of rent increase does not respect the law?

It could happen that a landlord sends a notice that does not match the sample notice of rent increase provided by the TAL.

For example, the notice could give the impression that the tenant has two choices: accept the rent increase or move out. Or, the notice might not say that the tenant has one month to refuse the rent increase in writing.

Whatever the notice looks like, a tenant who wants to refuse the rent increase should send a letter to the landlord saying so, within one month of receiving the landlord’s notice.

In some cases, the TAL has decided that a notice that does not respect the law is not valid and that the landlord cannot get the proposed rent increase. But in other cases, the TAL has decided that these notices are valid, because the tenant did not suffer any harm because the landlord did not respect the law.

The validity of a notice that does not respect the law is therefore decided case-by-case. For a notice to be found not valid, the tenant must suffer harm and must be acting in good faith (that is, the tenant does not intend to take advantage of the situation).

It is a good idea to assume that the notice is legally valid: don’t count on the possibility of it being found not valid.

How can I tell whether the rent increase is justified?

Contrary to popular belief, there are no fixed rent increases. Several factors can affect the amount of increase in rent:

  • energy costs,
  • increases in municipal property taxes or in school taxes,
  • changes in the cost of insurance,
  • major repairs and improvements like repairing the roof or the heating system or putting in a pool,
  • maintenance costs for building upkeep like snow removal, painting, minor repairs, or plumbing upkeep.

For major repairs that benefit all the tenants of the building, the increase in rent will be shared by all the tenants. However, repairs that only take place in your neighbour’s unit should not affect your rent.

The TAL’s website has a calculation form for tenants and landlords (French only). It lets them come up with an acceptable rent increase for each rental unit. The calculation form is not a legal requirement. It is meant to be used as a negotiation tool for landlords and tenants. The form lists the various expenses the TAL will take into account if it has to set the rent.

When I receive a notice to change my lease, what are my options?

After receiving a lease modification notice, you have one month to send the landlord one of these responses in writing:

  • You don’t wish to renew the lease and will leave when it ends. 
  • You accept the changes. The lease will then be renewed with the proposed changes.
  • You refuse the changes. The lease will be renewed, but the landlord can go to the TAL for a decision on the proposed changes.

Important! If you don’t write to the landlord to refuse the changes, you’re considered by law to have accepted them. For this reason, it’s very important to let the landlord know if you disagree with any proposed changes.

However, in certain situations, you must leave your apartment at the end of the lease if you refuse the changes. These are the situations:  

  • Your apartment is located in a housing cooperative of which you are a member.
  • Your apartment is located in a building that was built or started being used for rental housing in the last five years.

This restriction must be mentioned in Section F of your lease. In addition, if your lease was signed on February 21, 2024, or after, and concerns a new building, the lease must also mention the maximum rent that the landlord can require you to pay during the first five years that the building is used for rental housing.

What can my landlord do if I refuse the rent increase?

If you refuse the rent increase or any other change proposed by the landlord, and renew your lease, the landlord has three options:

  • Do nothing. In that case, your lease will be renewed on the same terms you had before.
  • Try to negotiate a friendly agreement with you. Remember that it is always possible to settle things this way.
  • Ask the TAL to set the rent or to rule on the change to the lease that was refused. The landlord must apply to the TAL within one month of getting your notice of refusal.

If the TAL accepts the landlord’s rent increase, it is important to know that you cannot change your mind and cancel the lease renewal, unless your landlord agrees.

What can I do if I have not received any notice of changes to the lease?

If you have not received a notice from the landlord indicating a rent increase or other type of change, you can renew your lease as it is or notify your landlord that you will be leaving.

If you want to stay, no notice is necessary. The lease will be renewed automatically on the same terms as the previous lease.

If you want to leave, send your landlord written notice that you’re not renewing the lease. The TAL has a model notice you can use.

If the lease does not have a set length, the tenant must give a written notice one to two months before leaving. If the lease is for 12 months or more, the tenant must give notice to the landlord three to six months before the end of the lease. For example, for a lease ending on June 30, the notice must be given to the landlord between January 1 and March 31.

I live in the rental unit, but I haven’t signed the lease and the tenant died or left. Can I stay?

In certain cases. Here are the requirements for each situation:

The Tenant Leaves

You can stay and become the tenant if you meet these three requirements:

1. You are

  • the tenant’s married or civil union spouse,
  • the tenant’s de facto partner (not married or in a civil union) who has lived with the tenant for at least six months,
  • the tenant’s close relative, or relative by marriage or by civil union, who has lived with the tenant for at least six months.

2. You continue living in the rental unit.

3. You send the landlord a written notice identifying yourself and stating that you want to exercise your right to stay in the unit. This notice must be sent within two months of the tenant’s departure. You can use the model “Notice of cessation of cohabitation” on the TAL’s website.

The Tenant Dies

You can stay and become the tenant if you meet these three requirements:

1. You lived with the tenant at the time of the tenant’s death.

2. You continue living in the rental unit.

3. You send the landlord a written notice within two months of the tenant’s death. In the notice you must identify yourself and state that you want to exercise your right to stay. You can use the model “Notice of lessee’s death“.