What is the rent increase limit in Quebec?

With rent prices steadily rising in nearly every part of the country, many Quebec renters are likely wondering how much they can expect their rent to increase by this year. Unlike other Canadian provinces, Quebec doesn’t have clear limits for rent increases, leaving many renters and landlords wondering how much is permitted and what constitutes an unreasonable increase. To answer your questions, liv.rent has compiled this guide for renters and landlords to better understand Quebec rent increase laws.

Does Quebec have a rent increase limit?

Unlike other provinces such as B.C. and Ontario, Quebec does not set a hard cap on rent increases. Instead, the province’s rental board, the Tribunal administratif du logement (TAL) provides landlords with a recommendation based on landlords’ typical expenses for similar properties.

Tenants have the right to refuse rent increases in Quebec, however, if the increase is deemed reasonable, the TAL may still permit the landlord to raise the rent anyway.

How rent increases are calculated in Quebec

Calculations factor in several different costs, and differentiate between heated and unheated units when recommending an increase percentage. When deciding how much to raise rent by, landlords should factor in the following:

• Energy costs
• Increases in municipal property taxes or in school taxes
• Changes in the cost of insurance
• Major repairs and improvements: repairing the roof or the heating system, putting in a pool, etc.
• Maintenance costs (upkeep of the building: snow removal, painting work, minor repairs, upkeep of the plumbing, etc.)

To provide a standardized guideline for rent increases, the TAL offers an online Calculation for Rent Increase tool where landlords can fill in information about their income and expenses for each property

What is Quebec’s rent increase limit for 2024?

For 2024, the TAL advised tenants to expect an average rent increase of 4.0% for unheated units. This is a notable bump from the 2.3% recommended increase in 2023, likely due to the steep rate at which rent prices have increased across Canada.

Again though, this is provided just as a rough guideline. Any rent increase amount is considered legal so long as it is provided using the proper written notice and accepted by the tenant.

How landlords can increase rent in Quebec

Landlords must provide tenants with three to six months’ written notice before the end of their lease if they plan to increase rent. The written renewal notice must clearly state the new terms of the lease, with a deadline by which tenants must respond.

The lease automatically renews under the same terms if no rent increase notice is received. If a rent increase notice is given, tenants have one month to respond. In this case, they have three options:

• Accept the rent increase and renew the lease
• Notify the landlord that they plan to move
• Refuse the rent increase and remain in the rental unit

Not responding to the rent increase notice means that the tenant accepts the increase. In this case, the lease will be renewed with the increase applied.

What happens if a tenant refuses a rent increase

If a tenant refuses a rent increase in Quebec, the landlord may try to negotiate a mutually agreeable increase, or request that the TAL set the new rent. Landlords have one month to complete this process and set a new rent price. Until this process is complete, the lease proceeds with the current rent price.

Tenants have one month to respond to the notice of increase, and can do so using a standardized form.

Quebec rent increase resources

Renters and landlords can learn more about the rules surrounding rent increases with the following resources.

• Monthly Montreal Rent Report – liv.rent
• Rent Increase Regulations – Tribunal administratif du logement
• Rent Increase Calculator – Tribunal administratif du logement
• Rights and Obligations of the Lessor and Lessee – Gouvernement du Québec

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