Quebec rental board approves 3.1% base rent hike

Quebec’s rental board approved a 3.1 % rent hike for leases renewing after April 2, a decision tenant-rights groups say will lead to “significant” increase.

Quebec’s rental board, the Tribunal administratif du logement (TAL), has approved a 3.1 per cent base rent hike for leases renewing after April 2, a decision tenant-rights groups say will lead to “significant” increases.

The board underscored that the method of calculating rent was revised for 2026, but said the old formula still applies to notices sent before Jan. 1, while the new base rate applies to those issued on or after that date.

Tenants’ rights group le Regroupement des comités logement et associations des locataires du Québec swiftly denounced the decision.

“This regulatory change does not provide any lasting solution to the housing crisis and does nothing to alleviate the excessive burden already borne by tenants,” the group said in a press release.

The TAL also introduced a new applicable percentage of 6.7 per cent for services offered in private seniors’ residences.

The group further criticized the new rent-control method, calling it a missed opportunity to strengthen protections in Quebec and noting that it is based on four components.

“Among these, the base rate—calculated based on inflation over the past four years—is the central element. Currently set at 3.1 per cent, this is the highest rate in the last 20 years, except for 2024 and 2025,” the group emphasized.

“In addition, the new regulations allow five per cent of renovation expenses to be added to the rent increase, which is unprecedented given that since 2008, this percentage has generally been around 3 per cent.”

In 2025, the board authorized a 4.5 per cent rent increase and six per cent for services offered in private seniors’ residences.

“Finally, the new rules also allow for the addition of property tax and insurance increases when they exceed the base rate, as will be the case for several municipalities in Quebec, including Montreal,” the group said.

The TAL said landlords and tenants are free to agree on a rent increase that both parties consider satisfactory. If they cannot come to an agreement, the landlord has one month after the tenant’s response to petition the board for a change to the lease and request rent determination.

“Otherwise, the lease will be renewed under the same conditions. It is important to note that special rules apply in the case of a building that has been constructed or has undergone a change of use within the last five years, as well as to low-rent housing or housing rented by a cooperative to one of its members.”

A report published last month by the Canada Mortgage and Housing Corporation shows overall rents in Montreal rose 7.2 per cent in 2025, while units that turned over to a new tenant increased by an average of 17 per cent.

The rental board also provides tools for calculating rent increases, based on the criteria the TAL applies in the event of a rent-determination request.

“Without a registry and without real rent control measures, tenants have no chance of seeing the situation improve in the near future. The affordability crisis will continue, with many tenants going deeper into debt and relying more and more on food banks in order to keep their apartments,” the group said, noting that tenants have the right to refuse an increase and remain in their homes.

With files from the Canadian Press.