LEGAL

Lease renewal in Quebec: what every owner needs to know

By La Griffe Immobilière · Property management in Quebec

Lease renewal is one of the most regulated operations in rental management in Quebec. A mistake in timing or procedure can be costly. Here is what every plex owner absolutely needs to know.

Deadlines: a rule that cannot be negotiated

In Quebec, the notice period for renewal depends on the duration of the lease:

• Lease of 12 months or more: notice between 3 and 6 months before the end of the lease
• Lease of 6 to 12 months: notice between 1 and 2 months before the end
• Lease of less than 6 months: notice between 1 and 2 months before the end
• Weekly lease: notice between 1 and 2 weeks before the end

Rent increase: how should it be calculated?

You may propose a rent increase at renewal. Each year, the TAL publishes a recommended adjustment rate based on inflation and operating costs. The rate is not mandatory — you may propose more — but the tenant can refuse and contest before the TAL.

To calculate an increase that can be justified, you should take into account:

• Increases in municipal and school taxes
• Rising energy costs (if heating is included)
• Major improvement work completed
• Changes in mortgage interest rates

The tenant’s right to refuse

The tenant has the right to refuse any change to the lease terms, including a rent increase. The refusal must be sent within one month of receiving the notice. If you cannot reach an agreement, the TAL decides.

Repossession of a dwelling: strict rules apply

If you wish to recover a unit for yourself or a close family member, very strict rules apply. The notice must be sent at least six months before the end of the lease and must meet precise conditions. A mistake in this process can invalidate your request.

Why delegate lease renewals

Lease renewals are time-consuming and highly procedural. A professional manager ensures that all notices are sent on time, that rent increases are calculated and documented properly, and that any refusals are handled in accordance with TAL rules.