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Tenants - Your rights during a lease

Renewing a Residential Lease and Rent Increases

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.

Is the lease renewed automatically?

Yes. In principle, residential leases are renewed automatically.

The tenant, and those who have the right to maintain occupancy of the dwelling, can benefit from the automatic renewal of the lease. To learn more about who has the right to maintain occupancy of the dwelling and about the conditions that they must meet, see the question: "I live here, but I haven’t signed the lease and the tenant died or left. Can I stay?"

Subtenants do not benefit from the automatic renewal of a lease.

What must the landlord do if he wishes to modify certain aspects of the lease upon renewal?

If a landlord wishes to modify a lease - for example, to increase the rent - he must send a written notice to the tenant. The delay in which he must send this written notice depends on the type of lease in question.

Click here to consult our table.

When is a notice of rent increase legally valid?

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 on 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.

What happens if a notice of rent increase does not comply with the law?

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 1 month 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 1 month of receiving the landlord’s notice.

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 prudent to proceed as if the notice were legally valid and not to count on the possibility of asking for it to be declared invalid.

How can I determine whether or not the rent increase is justified?

Contrary to popular belief, there is no fixed rate for rent increases. The rate that the Régie du logement provides every year is just an estimate that varies according to the type of dwelling.

Several factors also affect the amount of increase in rent. For example:

  • Energy costs
  • Hikes in municipal property taxes or in school taxes
  • Variations in insurance premiums
  • Major repairs and improvements: repairing the roof or the heating system, putting in a pool, etc.
  • Maintenance costs. These costs are for the upkeep of the building: snow removal, painting work, minor repairs, upkeep of the plumbing, etc.

With regard to major repairs that benefit all of the tenants of the building, the increase in rent will be apportioned in accordance to the number of dwellings. However, repairs that only take place in your neighbour’s dwelling should not affect the amount of rent that you pay.

The Régie du logement’s website provides your landlord with a calculation form  (http://www.rdl.gouv.qc.ca/en/calcul/calcul.asp). Once filled, this form allows him to come up with an acceptable amount of rent increase for each dwelling. The calculation form is not mandatory. It is meant to be used as a negotiation tool between landlords and tenants. The form enumerates the various expenditures considered by the Régie du logement’s Commissioners to fix the rent.

When I receive a notice modifying the lease, what are my options?

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.

What can my landlord do if I refuse the rent increase?

If you refuse the rent increase or any other modification proposed by the landlord, he can:

  1. Decide not to do anything at all. In that case, your lease will be renewed on the same terms and conditions that you had before.

  2. Try and negotiate a friendly agreement with you. Remember that it is always possible to settle things amongst you.

  3. Ask the Régie du logement to fix the amount of rent or to rule on the modification to the lease that was refused. The landlord has one month following the receipt of your notice of refusal to apply to the Régie.
Should the Régie du logement accept the landlord’s rent increase, it is important for you to know that you cannot change your mind and cancel the lease renewal unless your landlord agrees.

What should I do if I have not received any notice of modification to the lease?

If you have not received a notice from the landlord indicating a rent increase or other type of modification, you can choose to renew your lease at the same conditions or advise your landlord that you will be leaving your dwelling.

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.

If there is no fixed term established in the lease, the tenant must give a written notice from 1 to 2 months before vacating the dwelling. If the lease is for 12 months or more, the tenant must give notice to the landlord from 3 to 6 months before the end of the lease. Therefore, for a lease ending on June 30, the notice must be given to the landlord between January 1st and March 31.

I live here, but I haven’t signed the lease and the tenant died or left. Can I stay?

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 (partner) who has lived with him for at least 6 months;
  • the tenant’s close relative, or relative by marriage or by civil union, who has lived with him there for at least 6 months;

2. You are still living in the dwelling and

3. You send the landlord written notice identifying yourself and stating that you wish to exercise your right to maintain occupancy. This notice must be sent within 2 months of the tenant’s departure. You can use the model "Notice regarding the cessation of cohabitation  (http://www.rdl.gouv.qc.ca/en/pdf/803a9312.pdf)" available on the website of the Régie du logement (PDF document).

If the tenant dies

You can stay if:

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

2. You are still living in the dwelling and

3. You send the landlord a written notice identifying yourself and stating that you wish to exercise your right to maintain occupancy within 2 months of the tenant's death. You can use the model "Notice regarding the death of the tenant  (http://www.rdl.gouv.qc.ca/en/pdf/804a9312.pdf )" available on the website of the Régie du logement (PDF document).

Useful Links :

  1. Régie du logement website  [http://www.rdl.gouv.qc.ca/]