New Quebec rent increase rules take effect as July 1 looms

As hundreds of thousands of Quebec leases flip on July 1, new rules for rent increases take effect that simplify the calculation process and give tenants clearer ways to challenge hikes.

Quebec's old rent increase formula, in place since the 1980s, relied on more than a dozen economic indicators. The new version cuts that down to four: Quebec's Consumer Price Index averaged over three years, municipal property taxes and services, school property taxes when increases exceed inflation, and fire and liability insurance premiums. For current 2026 lease renewals, the basic guideline is 3.1 per cent.

Landlords must now provide an official list showing which major renovations can justify higher increases—roof or foundation work, major kitchen or bathroom renovations, replacing doors and windows, energy efficiency upgrades, and safety system improvements. Tenants can compare their landlord's claims against this official list instead of just accepting explanations.

A significant new rule: if landlords received grants, subsidies, or public funding for renovations, they must deduct that amount before calculating rent increases. This prevents tenants from paying for work that taxpayers already helped fund. Landlords are required to be upfront about any government assistance when renovation-based increases are proposed. If you're signing a new lease or renewing, ask for a full written breakdown of how your landlord reached their number.