There are a number of ways to change a lease , including increasing the rent the tenant has to pay. However, the landlord cannot increase the rent at any time or in any way. Indeed, the law provides a framework for this process in order to avoid any abuse.
When the landlord can increase the rent
Under the Civil Code of Québec, tenants are entitled to automatic renewal of their fixed-term lease when it ends. For example, if a 12-month lease ends on June 30, it will in principle be automatically renewed from July 1 (i.e. the next day) to June 30 of the following year. Thus, leases follow one another year after year without the tenant having to do anything to ensure that they keep a roof over their heads. If you have any questions, schedule a consultation with a tenant lawyer .
It should be noted that a lease can be for an indefinite period. In this case, it is never renewed, but can be terminated, i.e. cancelled.
The law provides that the rent of a fixed-term lease can only be changed at the time of renewal of the lease. The new rent will therefore only start to apply after the renewal. For an open-ended lease, the end of which is uncertain, the landlord must determine the day on which the increase will take place.
Under the same section, the landlord must have previously sent a notice to the tenant informing them of their intention to increase the rent. The time frame for sending this notice varies depending on the length of the lease:
| Duration of the lease | Notification Deadline |
| Lease of 12 months or more | 3 to 6 months before the end of the lease |
| Lease of less than 12 months | 1 to 2 months before the end of the lease |
| Open-ended lease | 1 to 2 months before the scheduled day of the rent increase |
Notice of Rent Increase
The notice of rent increase sent by the landlord to the tenant must be in writing as required by the Civil Code.
The Code also specifies how the amount of the increase is to be indicated in the notice, and requires a reference to the time allowed to the tenant to notify the landlord of its refusal:
The notice of change to increase the rent must indicate in dollars the proposed new rent, or the increase in dollars or as a percentage of the current rent. This increase may be expressed as a percentage of the rent to be determined by the court, if the rent is already the subject of an application for fixing or review.
The notice must also indicate the proposed term of the lease, if the landlord proposes to change it, and the time allowed for the tenant to refuse the proposed amendment.
In addition, the notice must inform the tenant of the three choices available to him following its receipt:
- Accept the proposed increase;
- Refuse the increase, not renew the lease and vacate the unit at the end of the lease;
- Deny the increase and renew the lease.
In fact, some landlords omit to include the third option in order to make their tenants believe that they can only accept the increase or leave the unit.
It is recommended that the tenant respond to the landlord’s notice even if it does not comply with the requirements of the law. In some cases, the Tribunal will find that the notice is valid despite its non-compliance because the tenant had not suffered any prejudice as a result of the non-compliance.
To calculate a rent increase, the Tribunal considers, among other things:
- Increases in property and school taxes;
- The increase in the price of insurance;
- Maintenance costs;
- Management fees; and
- Major expenses relating to the entire building or dwelling concerned.
The Tribunal administratif du logement has created a simplified tool for estimating the value of the rent increase. This tool takes into account the various expenses that the landlord has incurred for the dwelling and the building in which it is located.
It has also made available a sample rent increase notice for landlords to use.
In order to complete these calculation tables, the tenant can ask the landlord to provide him with the financial information of his building. However, the latter is not obliged to do so before opening a file with the Administrative Housing Tribunal. It is also possible to obtain information related to the taxes that the landlord must pay by visiting the land roll website of the city where the building in question is located.
Each year, the Tribunal also provides tenants with clues to calculate their rent increases. These indicia are the same as those used by the Tribunal during the hearings on the fixing of rent.
It should be noted that the rent increase is not governed by a legal maximum or a fixed rate, but rather must be determined according to several elements, including the expenses incurred in maintaining the dwelling and the building in which it is located.
Lack of notice of rent increase
If the landlord does not give notice of a rent increase and the tenant does not want to renew the fixed-term lease or wants to terminate the lease indefinitely, the landlord must send a notice to the landlord himself, as required by the Civil Code. This is done within the same time frame that the landlord must meet when sending a notice of rent increase, which depends on the length of the lease in question.
A template for a notice of non-renewal, which informs the landlord of the non-renewal of the lease, is available on the Tribunal’s website.
Tenant’s response
Under the first paragraph of article 1945 of the C.C.Q., the tenant must notify the landlord within one month of receiving the notice of rent increase of his refusal to increase the rent or of his decision not to renew the lease, if it is for a fixed term, or to terminate it, if it is for an indefinite term. It is important that the tenant send his response to the landlord within this time limit because, otherwise, the same section provides that failure to respond within the time limit means that the tenant has accepted the rent increase proposed by the landlord.
Thus, if the tenant accepts the rent increase proposed by the landlord, it is not necessary to send the tenant a response informing the landlord.
The Tribunal has also developed a template for responding to the rent increase notice.
Our lawyers help you with: Tenant Law, Landlord Law, Abandonment of Housing, Pets, Rent Increase, Filing Application, Rent Deposit, Rodent Infestation, Sale of Housing
Tenant’s refusal
When the tenant refuses the rent increase proposed by the landlord and renews his lease, the Civil Code stipulates that the tenant may apply to the Tribunal within one month of receiving the response to have the rent fixed. If the landlord does not apply to the Tribunal within this period, this means that he accepts that the rent will not be increased. This means that the rent will remain the same for the next lease.
The landlord can also suggest that the tenant negotiate to reach an amicable agreement. This option is less costly and less stressful for both parties. Under the Code of Civil Procedure, negotiation does not imply waiver of the right to take legal action.
However, a tenant who refuses the suggested modifications, including the rent increase, must vacate his or her dwelling at the end of the lease in the following cases:
- When the dwelling is located in a housing cooperative and the tenant is a member;
- When the dwelling is located in a building that was built or changed use five years ago or less.
For buildings built or that have changed use in the last five years or less, it is important to note that if the lease was signed after February 20, 2024, and the building was ready to be rented after that date, the landlord must indicate in the lease the maximum rent he will be able to charge in the five years following the date on which the building was ready to be rented. If he fails to do so, he will not be able to require the tenant to vacate if he refuses the increase.
The RN form
The necessary information form, also known as the RN form, available on the website of the Administrative Housing Tribunal, is a document that contains all the information necessary for the calculation of the rent increase made by the Tribunal.
It is important not to confuse this form with the calculation tool made available to the public by the Tribunal. Indeed, this tool, completed and filed with the Court in the context of litigation, does not meet its obligation imposed by law. It is therefore necessary to ensure that the RN form is completed and submitted to the Tribunal.
When the landlord makes an application to the court to set the rent, the landlord is obliged to provide this form to the tenants who are the subject of the application. The tenant has 90 days from the date of the submission of this form by the Court to serve a completed copy of this form on the tenant and to file proof of such notification with the Court. If the Tribunal fails to do so within the prescribed time limit, the Tribunal closes the file.
If you have any questions about your rent increase situation, our team of lawyers will be able to answer your questions during a phone, virtual or face-to-face consultation. For more information, we invite you to contact us without delay.