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Rent increase notices and modification of the lease

Part of category Le saviez-vous?

Tuesday, 12 January, 2016

Generally speaking, leases for dwellings are renewed automatically at term for the same period of time and at the same rent, unless landlords advise tenants in writing that they want to increase the rent. For one-year leases ending on June 30, 2016, the notice can be given between January 1 and March 31, 2016. The period differs in the case of a rented room or if the lease is for a different duration.

Upon receipt of the landlord’s notice, the tenant has three options:

  • Accept the increase: no reply is necessary. The lease is renewed and the tenant pays the new rent as of July 1, 2016.

  • Refuse the increase, in which case the lease is renewed for another year. The tenant is not obliged to vacate the dwelling, but the new rent must still be determined.

  • Not renew the lease: the tenant vacates the dwelling at the end of the lease.

In the last two cases, the tenant is required to notify the landlord in writing of his or her decision within the month after receiving the notice. If the tenant does not do so, the lease will be renewed automatically, and the tenant will have to pay the new amount of rent as of July 1, 2016.

If a tenant refuses the increase , the landlord can, within the month following receipt of the refusal, file with the Régie du logement an application for fixing of the rent.

If a landlord does not submit an application to the Régie, the lease is renewed at the same rent and conditions.

Steps for modifying the lease and periods for giving notice
 

Step 1

Notice by lessor

Step 2

Lessee’s reply

Step 3

Application to the Régie du logement by the lessor

Lease of 12 months or more

Between 3 and 6 months before termination of the lease

Within 1 month after receiving the notice of modification

If the lessee fails to reply, he or she is deemed to have accepted the modification.

Within 1 month after receiving of the lessee’s refusal

Otherwise, the lease is renewed of right on the same conditions.

Lease of less than 12 months

Between 1 and 2 months before termination of the lease

Lease with an indeterminate term

Between 1 and 2 months before proposed modification

Lease for a room

Between 10 and 20 days before the termination of a fixed term lease or before the proposed modification if the lease has an indeterminate term

New immovable or an immovable recently converted for residential purposes

It is important to note that the lessee cannot refuse the rent increase for a dwelling if it is located:

  • in an immovable that was built five years ago or less or;
  • in an immovable whose use for residential purposes results from a change of destination that was made five years ago or less.

In the event of a refusal, the lessee must vacate the dwelling upon termination of the lease. However, for those restrictions to apply, they must be mentioned in the lease of the dwelling (section F of the lease – Restrictions on the right to have the rent fixed and the lease modified).

Models notices and replies are available on the Régie du logement Website, at www.rdl.gouv.qc.ca.

The Régie can also be reached by phone:

Montréal, Laval and Longueuil

514 873-BAIL (2245)

Elsewhere

1 800 683-BAIL (2245)

The Régie du logement is the tribunal with exclusive jurisdiction over rental housing in Québec.