Renewal of the lease and fixing of rent

Rent increase

At the time of the renewal of the lease, a lessor is free to ask a rent increase that he deems just and reasonable in his notice that he remits to his lessee. The lessee has the right to accept or to refuse that increase within one month following the receipt of the lessor’s notice.

In order to help the parties in reaching an agreement on the rent increase, the Tribunal puts at their disposal an online calculation tool (in French only) of the rent increase which is done by using the rules established in the Regulation respecting the criteria for the fixing of rent that is in force at the Tribunal administratif du logement. The lessor enters the data pertaining to his building, then submits the results to his lessee in order that both reach an agreement on the rent increase. Please refer to section Calculation for rent increase.

In the case when both parties cannot reach an agreement on the rent increase (or on any modification of the lease), the lessor will have to file an Application to modify the lease at the Tribunal administratif du logement, within the month following the answer of refusal by the lessee.

When that application will be filed, the Tribunal will remit to the lessor the form Necessary information regarding the fixing of rent. The lessor will have to enter in it the revenue and expenses of the building by taking into account the given dates. Later on, the Tribunal will send a notice of hearing to both parties and the lessor will have to have on hand all the necessary vouchers (invoices, bills, etc.).

Please note that there are important time limits to respect. Take a look at section Changing a condition of the lease.