On January 21, 2025, the Tribunal administratif du logement (“TAL”) announced that it was proposing an average residential rent increase of 5.9% for the year 2025. This increase, more significant than in previous years, has raised concerns among both tenants and landlords, particularly regarding the rent determination criteria and the obligations of each party.
Each year, the rent adjustment proposed by the TAL is established according to the Regulation respecting the criteria for the fixing of rent, taking into account the actual expenses incurred for a building or a rental unit.[1] Rent increases are calculated based on changes in the prices of electricity, gas, repairs made to the rental unit, services, and rents, as per the Quebec Consumer Price Index (“CPI”).[2]
RIGHTS AND OBLIGATIONS OF LANDLORDS
The landlord has obligations towards their tenant, such as ensuring the peaceful enjoyment of the dwelling, maintaining its habitability, carrying out necessary repairs, and complying with safety and sanitation standards. These responsibilities are essential to protect the tenant.
More specifically, if the landlord intends to increase the rent, they are required to formally notify the tenant by sending a notice of rent increase and modification of another lease condition using the mandatory form available on the TAL website.
If the lease has multiple signatories, each tenant must be informed.
The notice may be delivered to the tenants through various means: by registered mail, email, or in person. It is recommended to use a method that provides written and official confirmation of receipt by the tenant, either through proof of receipt or against the tenant’s signature.
The written notice must comply with specific content requirements. In addition to the information already contained in the form, such as the deadlines to respond, it must list all modifications made upon lease renewal, including the rent increase.
The rent increase may be expressed in three ways:
- By indicating the proposed new rent amount in dollars,
- By specifying the increase amount in dollars, or
- By stating the percentage increase relative to the current rent.
The landlord must comply with the rent increase rate determined by the TAL for the current year. If the landlord intends to exceed the suggested increase rate set by the TAL, they must provide a valid justification, such as substantial renovations or a significant increase in operating costs. In such cases, the landlord must ensure they can demonstrate that the increase is reasonable and proportionate, should the matter be brought before the TAL.
The deadline for sending the notice depends on the duration of the lease[3]:
| TABLE OF NOTICE PERIODS | |
| Lease type | Notice period |
| Lease of 12 months or more |
3 to 6 months before the end of the lease |
| Lease of less than 12 months | 1 and 2 months before the end of the lease |
| Lease with an indeterminate term | 1 and 2 months before the proposed modification |
| Lease for a room | 10 to 20 days before the end of a fixed term lease or before the proposed modification if the lease is of indeterminate term |
RIGHTS AND OBLIGATIONS OF TENANTS
The tenant has one month from the receipt of the notice of rent increase and modification of another lease condition to respond. A response template for the tenant is available for this purpose on the TAL website[4].
The tenant who has received the rent increase notice has three options:
- Accept the lease renewal with the proposed modifications,
- Reject the modifications while renewing the lease under the current conditions, or
- Decide not to renew the lease and vacate the property at the end of the lease term.
(A) Acceptance of New Terms
If the tenant does not respond within the prescribed period, they will be deemed to have accepted the new terms proposed by the lessor.
(B) Refusal of New Terms
A tenant may refuse the modifications proposed by the landlord and renew the lease under the same conditions.
If a tenant refuses the changes proposed by the landlord, they may be required to vacate the property at the end of their lease in certain specific cases. This applies particularly if[5]:
- The property is part of a housing cooperative and the tenant is a member.
- The apartment is located in a building that was built or renovated less than five years ago. If the lease was signed after February 20, 2024, the landlord must specify in the lease what the maximum rent they can charge will be for the next five years. This means the tenant knows from the start how much rent they will have to pay during this period, and this amount cannot increase beyond a certain threshold during those five years.
(C) The Tenant Decides to Vacate
If the tenant does not receive any notice regarding a rent increase or lease modification within the prescribed time, and if they wish to vacate the property at the lease’s expiration, they are required to inform the landlord within the time limits specified in the table above. Failing to do so will result in the lease being automatically renewed under the same conditions.
HOW IS A RENT INCREASE CALCULATED?
Before deciding to accept or refuse a rent increase, it is important to understand the factors that may be considered in determining the rent adjustment. A rent increase may be justified by rising expenses and costs borne by the landlord, such as municipal taxes, insurance premiums, energy costs, maintenance and service fees, building management costs, inflation, significant renovation work, etc.
A rent calculation tool is available to both landlords and tenants to help determine whether the rent increase is reasonable. This tool serves as a simple indicator; however, in the event of a dispute, the TAL is not obligated to apply it.
Tenants may seek assistance from a housing committee to help with the calculation. Additional free resources are also available below.
IN CASE OF DISAGREEMENT
As mentioned earlier, a tenant has the right to refuse a rent increase by sending written notice to the landlord within one month of receiving the rent increase notice. Upon receipt of the refusal notice, the landlord has one month to respond and may choose to:
- Take no action, in which case the lease will be renewed under the existing terms;
- Negotiate with the tenant to reach an agreement;
- Request that the TAL determine the rent.
Negotiation with the Landlord
In the event of disagreement, the landlord can attempt to negotiate directly with the owner.
If the parties reach an agreement, it’s best to put it in writing. Housing committees can also provide a model-written agreement.
Discussions can be between the two parties alone, or with the participation of a mediator or conciliator.
Choosing negotiation, mediation or conciliation allows the parties to find common ground. It’s a free, confidential and rapid solution. However, each party must agree to take part in the process, which is voluntary and can be terminated at any time.
In particular, the TAL offers a conciliation service that enables tenants and landlords to discuss and attempt to resolve any disagreements. A conciliator will be present to help the parties find a solution tailored to their needs and interests, rather than a decision imposed by the TAL.
If no agreement can be reached, the landlord can apply to the TAL to have the rent set.
Application to the Tribunal Administratif du Logement
If the tenant refuses the new lease conditions, the landlord, without prior negotiation, may submit an application to the TAL to determine the rent.
The landlord’s application must be filed within one month of the tenant’s refusal; otherwise, the lease will be renewed under the same conditions as before.[6]
Once the rent determination application is submitted, the TAL will provide the landlord with a form requiring the necessary information for rent determination. The landlord has 90 days to complete and submit this form. Within the same timeframe, the landlord must provide a completed copy of the form to the tenant and submit proof of notification to the TAL. Failure to meet this deadline will result in the closure of the file.
Before rendering a decision, the TAL must ensure that the tenant has an opportunity to present their case. The tenant will receive a notice informing them of the hearing date and procedures. However, if both parties agree or request it, the Tribunal may issue a decision without a hearing. In this case, the tenant will be given time to submit their arguments in writing.
When making its decision, the TAL must consider the standards established by the Regulation respecting the criteria for the fixing of rent[7]. According to the Regulation, the rent set by the TAL may be higher than the amount initially proposed by the landlord in the rent increase notice.
A decision rendered by the TAL is final and must be respected by both parties.
OTHER AVAILABLE RESOURCES :
TAL Information Service : Tenants can obtain information on their rights and obligations, as well as assistance with filing a request.
Housing Committees and Tenant Associations of Quebec (RCLALQ) : These committees provide personalized support to tenants. The RCLALQ website can help locate the nearest housing committee.
Défends-toit: A Montreal-based law firm specializing in housing law and tenant rights.
Hearing Preparation Service – Tribunal administratif du logement : The Jeune Barreau de Montréal offers free 20-minute consultations with a lawyer to help tenants prepare for a TAL hearing.
Important notes:
The information provided in this public legal education article is intended to provide a general understanding of the subject matter, does not constitute specific legal advice, and should not be construed as such. The above article represents the state of the law as of March 31, 2024.
As each situation is unique, we strongly recommend that you consult a lawyer for personalized legal advice tailored to your specific situation. We accept no responsibility for decisions made based on information contained in this article without prior consultation with a legal professional.
Article written by Lauréane Randrianantenaina and Chloé Kimenyi for Pro Bono Students of Canada
Verified by Carmelina Olivia Argento and Louise Thomas, coordinator of the YWCA Legal Information Clinic.
Réferences
[1] Tribunal Administratif du Logement, Calculation of the 2025 rent adjustment, online : <https://www.tal.gouv.qc.ca/en/news/detail?code=calculation-of-the-2025-rent-adjustment>
[2] Id.
[3] Tribunal administratif du logement, Changing a condition of the lease, online: https://www.tal.gouv.qc.ca/en/renewal-of-the-lease-and-fixing-of-rent/changing-a-condition-of-the-lease
[4] Tribunal administratif du logement, Tenant’s Response to the Notice of Rent Increase and Modification of Another Lease Condition, online : https://www.tal.gouv.qc.ca/sites/default/files/notices/TAL_810_E.pdf
[5] art. 1945 et art. 1955 C.c.Q.
[6] art. 1947 al. 1 et 2 C.c.Q.
[7] art. 1953 al. 1 C.c.Q.