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Renewing a residential lease and rent increase
You're enjoying the beautiful May weather on your balcony when your landlord pays you a visit. He has come to tell you that, starting July 1, your rent will go up to $630 from $580 per month. That’s a $50 monthly rent increase! You wonder if you can refuse. Is this verbal notice valid? If you refuse the increase, does it mean that you have to move out? How are you supposed to inform your landlord of your refusal? Also, isn’t it a little late for him to be telling you about this?

The Civil Code of Québec imposes conditions on your landlord if he wishes to raise your rent or modify any other terms of your lease. In this Infosheet, Éducaloi explains the steps to follow, the periods within which notices must be sent, your right to refuse, and the recourses made available to you by the Régie du logement.
In principle, residential leases are renewed automatically.

However, this applies only to those who have the right to maintain occupancy of the dwelling. This includes the tenant as well as the tenant’s legal or de facto (common-law) spouse. A relative or in-law who has been residing with the tenant for at least six months also has the right to occupy the dwelling. The resident who has not signed the lease must send proper notice to the landlord if she wants to maintain her occupancy of the dwelling. (See the question: "I live here, but I haven’t signed the lease and the tenant died or left. Can I stay?")

Subtenants and occupants other than those mentioned above do not benefit from the automatic renewal of a lease.
If a landlord wishes to modify a lease - for example, to increase the rent - he must send a written notice to the tenant.

  • For twelve-month leases, the notice must be sent at least three months but not more than six months before the term of the lease expires.

    Here's an example: Claude is a landlord. He wants to notify his tenants that their monthly rent will increase by $5 during the next term of the lease. If their leases will expire on June 30, 2000, then Claude must send his notice between December 31, 1999 and March 31, 2000.

  • For a lease of less than twelve months, the notice must be sent at least one month but not more than two months before the lease expires.

    For a lease of less than twelve months ending in November 2000, the landlord must send his notice to the tenants between September 30, 2000 and October 31, 2000.

  • Finally, for a lease with an indeterminate term, the notice must be sent at least one month but not more than two months before the modification is to take effect.
A notice of rent increase must contain the following elements:

  • the amount of the new rent proposed, the increase expressed in dollars, or a percentage in relation to the current rent;
  • the duration of the new lease if the landlord wants to change it;
  • any other modifications;
  • the amount of time the tenant has to refuse the rent increase.

Note: the notice must also be written in the same language as the lease and sent to the tenant’s address as indicated in the lease.

The Régie du logement has designed a sample notice of rent increase and of other modifications to the lease for use by landlords.
A landlord may send a notice that does not comply with the sample notice of rent increase provided by the Régie du logement.

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 state that the tenant has thirty days to refuse the rent increase in writing.

Whatever the case, a tenant who wishes to refuse the rent increase should send a letter to the landlord saying so, within 30 days.

In some cases, the Régie du logement has declared that a notice that does not comply with the law is invalid and that the landlord is not entitled to the proposed rent increase. But in other cases, the Régie du Logement has declared such a notice to be valid, because the tenant did not suffer any damage caused by the notice’s non-compliance with the law.

The consequences of a notice’s non-compliance are therefore determined on a case-by-case basis. In order for the notice to be declared invalid, the tenant must have suffered damage caused by the notice’s non-compliance and must be acting in good faith (that is, the tenant does not intend to take advantage of the situation). It is therefore more prudent to not rely on the possibility of requesting the notice to be declared invalid and to proceed as if the notice was given in compliance with the law.
The question isn't whether he has the right - rather, it's whether or not you agree with this increase.

If you disagree with the proposed change, you have 30 days to refuse it in writing.

Read the next question to find out how to refuse changes to your lease when you disagree with them.
After receiving a lease modification notice, you have one month to either:

  • notify the landlord that you will leave the dwelling;
  • notify the landlord that you accept the lease modifications. The lease will then be renewed according to the new conditions;
  • notify the landlord that you refuse the modifications. The lease will then be renewed, but the landlord can go to the Régie du logement for a ruling on the suggested modifications (see next question).

Keep in mind that if you don’t communicate your refusal to the landlord, you're considered to have accepted the new terms. It is therefore very important to let your landlord know that you disagree with his proposed changes.
If you object to the rent increase or any other modification, the landlord can, within one month following receipt of your notice of objection, ask the Régie du logement to fix the rent or rule on the modification to which you object.

Remember, however, that both parties can always try to reach a friendly agreement. The landlord may offer a lower rent increase that is acceptable to the tenant without having to go through the Régie du logement.

If, following your objection, the landlord doesn’t go to the Régie and doesn’t try to reach a friendly agreement, the lease will be renewed under its previous terms.
As a tenant, you can ask the Régie du logement to rule on whether or not the modifications are reasonable, so that you can prevent the changes or establish new conditions. Not all tenants have this option. For example, you cannot apply to the Régie du logement if:

  • you reside in a housing cooperative;
  • you reside in a recently constructed building or in a dwelling that has changed its destination within the five years following the date on which the building was ready for its intended use;
  • you reside in low rental housing, in which case the requested changes must be made in accordance with specific provisions. For more information, see the Infosheet entitled Low rental housing.
If you have not received a notice from the landlord indicating a rent increase or other type of modification, you can, if your lease has a fixed or indeterminate term, choose to renew or terminate the lease.

If you want to remain in your dwelling, no notice is necessary. The lease will be renewed automatically under the same conditions as the previous lease.

If you choose to vacate your dwelling, send your landlord a notice of non-renewal of the lease. The Régie du logement has designed a sample notice for this purpose.
Yes, in certain cases, based on the right to maintain occupancy.

If the tenant leaves

You can stay if:

1. You are:

  • the tenant’s spouse or civil union spouse;
  • the tenant’s de facto spouse who has lived with him for at least six months;
  • the tenant’s close relative, or relative by marriage or by civil union, who has lived with him there for at least six months;

2. You continue living in the dwelling and

3. You send the landlord written notice identifying who you are and stating that you wish to exercise your right to maintain occupancy. This notice must be sent within two months of the tenant’s departure. You can use the model "Notice regarding the cessation of cohabitation" available on the website of the Régie du logement (PDF document).

If the tenant dies

You can maintain occupancy if:

1. You lived with the tenant at the time of his death;

2. You continue living in the dwelling and

3. You send the landlord a written notice identifying who you are and stating that you wish to exercise your right to maintain occupancy within two months of the tenant's death. You can use the model "Notice regarding the death of the tenant" available on the website of the Régie du logement (PDF document).
Important
These questions and answers are for general informational purposes only. If you have a specific problem, consult a legal professionnal.
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