Home / Blog / Drafting Guide: Lease Renewal and Rent Increase in Quebec

September 2025

Lease renewal is a decisive moment for both landlords and tenants. It's when the continuity of the tenancy and any potential rent increases are decided. These processes, governed by the Tribunal administratif du logement (TAL), require a strategic approach. This guide details the steps, official forms, and factors to consider for successful rental management in Montreal.

In Quebec, a fixed-term lease is automatically renewed at the end of its term unless one party objects. The conditions of the initial lease remain the same (rent, duration), unless you propose changes.

• Duration: The lease is renewed for a period of one year, or for the initial duration if it was longer than one year.

• Required Action: No action is required on your part if you want the lease to renew on the same terms.

The tacit renewal of a lease is not always in your best interest. That's why the law allows you to send a notice of modification to propose changes. This notice is a landlord's tool to adjust the rent, but it can also be used for other purposes. The notice may include adding a new appendix, modifying the terms of the building rules, adding or removing services (e.g., a parking space), or even changing the lease term.

For your notice to be legal, you must respect strict deadlines, depending on the lease term:

• Lease of 12 months or more: The notice must be sent to the tenant between 3 and 6 months before the end of the lease.

• Lease of less than 12 months: The notice must be sent between 1 and 2 months before the end of the lease.

• Indeterminate lease: The notice must be sent between 1 and 2 months before the date on which you want the modification to take effect.

Using the official TAL form (Notice of rent increase and modification of another condition of the lease - TAL_806) is the best way to ensure your process is compliant with the law. Here's how to fill it out precisely:

To avoid abusive increases, the TAL provides a calculation tool to justify the increase based on objective criteria. It is highly recommended to use this tool. By sending a copy of the PDF result to your tenant with the renewal notice, you demonstrate transparency and reduce the risk of a dispute.

The TAL regulates increases to protect tenants. An unreasonable increase can be refused. Several factors influence a legal increase:

To estimate a reasonable rent increase, compare it with the market using these resources. However, it's important to remember that the TAL calculator (previous section) takes precedence for justifying a rent increase, even if your rent is well below the market rate.

To ensure your notice is complete and professional, you should include:

• The completed renewal form (TAL_806).
• Any appendix or modified rules you are proposing.
• The PDF of the TAL's rent increase calculation tool, if you used it, to justify your request and demonstrate transparency.
• The tenant's response form (TAL_810) to facilitate their process.
• The Relevé 31: This is a mandatory form that you must provide to your tenant before the end of February each year. It indicates the amount of rent paid and is essential for the tenant to obtain their solidarity tax credit. You can produce and give it to them at the same time as the renewal notice. You can find more information on the Revenu Québec website. 
• A request for proof of insurance: If your building rules require it, this is the perfect time to ask your tenant for up-to-date proof of home insurance.

The law requires the notice to be sent in writing. Historically, registered mail was the safest method to prove sending and receiving.

• Registered mail: It offers proof of deposit and a signed acknowledgment of receipt from the tenant, which is the most secure method in case of a dispute. The Tribunal can recognize the date of the acknowledgment as the start date for deadlines.
• Email: Sending the notice by email can be convenient, but proof of receipt is less solid than a registered letter. It is recommended to ask the tenant to confirm in writing that they have received the notice. However, current case law favors in-person delivery (with a signature) or registered mail for formal notices.

Once the tenant receives your notice, they have one month to respond. If they don't respond within this period, they are considered to have accepted the proposed changes.

The TAL's response form (TAL_810) offers three clear choices:

⚠️ There are exceptions where the tenant cannot refuse the increase:

• If the dwelling is a new rental unit (built 5 years ago or less) and the lease specifies it. In this case, the tenant must accept the increase or leave the dwelling. The landlord does not have to justify the increase.
• A tenant cannot refuse a rent increase if the building is a housing cooperative and the tenant is a member.

👉 How Should the Tenant Send Their Response? 

The tenant must respond in writing. They can do so by mail or email. For their own security and to avoid any misunderstanding, it's highly recommended that they get a written confirmation from you to prove you have received their notice.

Lease renewal is more than a simple formality: it's an opportunity to adjust the rent based on your actual costs and the market. By respecting deadlines and rules, you secure your relationship with the tenant and avoid conflicts.

👉 Also read:

• The Quebec Lease Agreement: An Essential Guide for Landlords
• The Building Bylaw: An Essential Tool for Your Rental Management in Montreal

• Think about insurance: Check your home insurance premiums, as a significant increase is a solid justification for a rent hike with the TAL. Furthermore, at each renewal, don't hesitate to ask your tenant for up-to-date proof of insurance, especially if you have specified it in the lease or building rules.

• Documents are your ally: Keep all invoices for major work (roof, windows) and notices of municipal tax increases or condo fees to support your request.

• Don't underestimate dialogue: An open discussion with a reliable tenant to explain the reasons for the rent increase can often prevent a dispute and encourage renewal.

• Beware of indeterminate leases: In this case, the notice of modification must be sent one to two months before the modification's effective date, not the end of the lease.

• Don't confuse improvement and maintenance: Maintenance work (e.g., fixing a leak) cannot justify an increase, unlike major improvements that add value to the building.

1. Can the TAL refuse a rent increase? 

Yes. The Tribunal can refuse the increase if it is not justified by actual expenses or if it is considered unreasonable. The tenant can then decide to leave or stay at the same rent.

2. How can I prove the receipt of the renewal notice? 

The best proof is an acknowledgment of receipt or an email confirmation from the tenant. Sending it by registered mail with tracking is also a secure option.

3. Do the same notice and renewal rules apply if I want to repossess the dwelling to live in it or to house a relative? 

No, the rules are different. For repossession, you do not propose a rent modification, but a notice of non-renewal for repossession. You must generally send this notice more than 6 months in advance unless otherwise agreed upon.

4. I just bought a building. Can I increase the current tenant's rent? 

Yes, but the increase must follow the same rules as for other landlords. You must give notice within the deadlines and justify the increase based on expenses related to your purchase, such as new property taxes.

5. What happens if I forget to send the renewal notice? 

If you miss the deadline, the lease is automatically renewed under the same conditions, with no rent increase. You will have to wait until the following year to propose any modifications.