Quebec Tightens Rules on Rent Increases

Summary#

• This Quebec bill would tighten the rules around rent increases for residential leases.

• It makes landlords go to the housing tribunal when a planned increase is over a set percentage, and it shortens the “new building” exemption from five years to three.

• Key changes:

  • Landlords must include more detail in the rent‑increase notice: the new rent in dollars, plus the increase in dollars and in percent.
  • If the proposed increase is above a threshold set each year, the landlord must ask the Tribunal administratif du logement (housing tribunal) to set the rent. If they do not, the lease renews at the old rent.
  • Even if a tenant says yes to an increase above the threshold, the tribunal process still happens.
  • The “newly built or newly converted” exemption from normal rent‑setting rules drops from 5 years to 3; during that time, very large increases still trigger the tribunal.
  • The tribunal will publish annual percentages used to set rents and the threshold that triggers a mandatory rent‑setting, with different thresholds by heating type (no heat, electric, gas, oil). For new/converted units during the 3‑year period, the threshold is 1% higher.
  • The housing minister can, for one year at a time, temporarily suspend parts of the percentage‑setting rules and put in place replacement rules if needed.

What it means for you#

• Tenants

  • Your rent‑increase notice will be clearer. It must show the new rent, plus the increase in dollars and percent.
  • If the increase is above the published threshold, you do not have to contest it. The landlord must ask the tribunal to set the rent. If they do not file in time, your lease renews at the old rent.
  • Even if you accept a rent increase above the threshold, the tribunal will still set the rent.
  • Thresholds will differ based on how your unit is heated. Watch the tribunal’s annual notice for the numbers.

• Landlords

  • You must provide a detailed rent‑increase notice. If your increase is over the threshold, you must apply to the tribunal within the set time. Missing the deadline means the rent stays as before.
  • A tenant’s acceptance does not bypass the tribunal if your increase is above the threshold.
  • For buildings heated differently (none, electric, gas, oil), different thresholds apply. New/converted units in their first 3 years have a threshold that is 1% higher.
  • The “new building/newly converted” lighter‑rule period shortens to 3 years.

• Owners of newly built or newly converted rentals

  • The exemption from the usual rent‑setting rules now lasts 3 years instead of 5.
  • During those 3 years, big increases still trigger a mandatory rent‑setting if they are above the specific (slightly higher) threshold.

• Everyone

  • The tribunal will set and publish the annual calculation percentages and the trigger threshold. The housing minister approves and publishes them and may adjust the rules for a single year in special situations.

• Timing

  • The law would take effect one month after it is approved. Notices sent before that cutoff follow the old rules. Leases signed before approval keep the old 5‑year rule for new/converted buildings.

Expenses#

No publicly available information.

Proponents' View#

• It protects tenants from sudden, very large rent hikes by making big increases go before the tribunal automatically.
• Clearer notices help people understand and verify what they are being asked to pay.
• Shortening the new‑build exemption to 3 years better balances tenant protection with the need to encourage construction.
• Different thresholds by heating type reflect real costs and make the system fairer.
• Letting the minister make one‑year adjustments adds flexibility in unusual times (for example, unexpected cost spikes).

Opponents' View#

• More mandatory tribunal cases could slow decisions and add backlog, creating uncertainty for both tenants and landlords.
• Extra paperwork and deadlines may burden small landlords and increase compliance costs.
• Lowering the exemption from 5 to 3 years could discourage new rental construction or upgrades.
• Removing “net income” from the calculation rules may ignore building‑specific realities, like high taxes or repairs.
• Allowing the minister to suspend parts of the rules for a year could add policy uncertainty and politicize rent setting.