The lease renewal season promises to be tense, with a sharp increase in rent due to inflation recently. This year, the rent increase will be about 5.9%. I bought my first rental property in 2001 and know from experience how important it is to know the rights of both the owner and the tenant when renewing the lease annually.Advice for tenants
My landlord sends me a notice of rent increase and change to another term of the lease when it is renewed. Do I have the right to refuse the increase if I consider it unreasonable?
You have 30 days to refuse it, and otherwise the lease will be automatically renewed. To do so, simply notify your landlord in writing, in the space provided by the new text that must be added to the notice of modification. You should be offered three options: accept; refuse and renew the lease; or refuse and leave the accommodation. You also have the right to refuse any changes if the notice is sent after the prescribed deadlines, i.e., between 3 and 6 months before the expiry of your lease.
I refused a rent increase. Who must take steps to bring a price-fixing case before the Administrative Housing Tribunal (TAL)?
This is the responsibility of the owner. “The landlord will have another month [after your refusal] to file the application for determination with the Administrative Housing Tribunal. If the court concludes that the increase calculated by the landlord was adequate and that the landlord had provided you with the relevant calculations and documents during the negotiation, the court may require you to also pay the file opening fee of $90 when the monthly rent exceeds $600.
Tips for Owners
I don’t know how to calculate the rent increase. How to do it?
There is an online calculation form, which is offered to you by the Administrative Housing Tribunal (Tribunal administratif du logement – TAL). The calculation grid for the increases, which will take effect as of July 2025, will be published when the increase suggested by the TAL is announced, so on Tuesday. You will be able to enter your expenses and calculate the recommended increase. This indicator, which is not mandatory, can help you determine the increase you will present to your tenant in the notice of modification of their lease.The recommended rent increase is 5.9% for 2025.
I want to send a notice of lease change to my tenant. How should I proceed?
The period for sending a notice of lease renewal begins 6 months before the end of the lease and ends 3 months before the end of the lease. In other words, for a lease that is renewed on July 1st, the mailing period is from January 1st to March 31st. After this date, the tenant is entitled to refuse any modification.
It is important to have proof of receipt of the notice. The notice must be given in person with the tenant’s signature, the acknowledgement of receipt or by registered mail, in particular. Sending the notice by phone, text message, regular mail or email is not valid.
I have heard that the tenant’s choices, upon receipt of the notice, must be specified. Is this true?
Yes, the notice of modification of the lease must include a new mandatory text, since December 26. The TAL asks that the three options available to the tenant be included when receiving the notice. The rights and obligations of each person in relation to the document must also be included. If you don’t include it… The renewal notice is not valid! Although the landlord can formulate this text on his own, the Administrative Housing Tribunal provides an example.
My tenant doesn’t understand why the price of his rent has increased. What is the best advice to follow?
I prefer to personally give the notice to my tenants and discuss it with them. It’s not a game of secrecy because the tenant has a powerful weapon: to say ‘no’. Thus, the owner has the advantage of being transparent and explaining the basis of the calculations. If both parties agree, any increase is legal.
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