Lease renewal in 11 questions

With lease renewals on the rise at this time of year, our consulting services team have compiled the 11 most frequently asked questions on the subject.

1. What changes came into force on January 1, 2026, with respect to lease renewal?

On January 1, 2026, three regulations came into force: one amending the residential lease form and two having a direct impact on lease renewal.

First, the Regulation respecting the criteria for the fixing of rent was amended. This means that the rent increase calculator is no longer based on the same criteria for landlords who send their notices as of January 1, 2026. For those who sent their rent increase notices before January 1, 2026, the former rent-setting criteria continue to apply.

In summary, the new calculator takes into account:

• a base rent percentage, calculated from the Québec Consumer Price Index (CPI), using a three-year moving average in order to stabilize increases and avoid significant year-to-year fluctuations;

• increases in municipal and school taxes, as well as insurance premiums, when their variation exceeds the base percentage applicable to the rent;

• capital expenditures at a rate of 5% (major renovations); and

• expenses resulting from the implementation of a service or the addition of an accessory or an appurtenance.

The Tribunal administratif du logement (TAL) has published an information sheet summarizing these changes and the transitional measures, available here (in French only).

CORPIQ will also unveil the new criteria during an event on January 22, 2026, for which you may register here.

Second, the Regulation respecting the mandatory content of a notice of modification of a residential lease now specifies that when the lease includes services tied to the tenant personally (for example, in seniors’ residences), the renewal notice must indicate the amount or percentage corresponding to the increase in the portion of the rent attributable to the cost of those services. A template for this purpose is available on the CORPIQ website, in the “Letter and Form Templates” section.

If you do not offer services tied to the tenant personally (for example: nursing care, meal services, domestic assistance, etc.), these new requirements do not apply to your leases.

 

 

2. What is the purpose of a lease renewal notice?

Landlords often view the lease renewal notice, commonly referred to as a ‘’notice of rent increase”, as a simple tool to increase rent. While it can indeed be used to adjust the rent annually, it also allows landlords to modify, add, or remove conditions and/or services in the lease.

For example, this notice may include a clause intended to:

• change the lease term;

• add a clause prohibiting smoking in the dwelling;

• remove a parking space, etc.

If no renewal notice is sent to the tenants and they do not indicate their intention to vacate the premises during the renewal period, the lease will be automatically renewed under the same conditions and at the same rent (section 1941 of the Civil Code of Québec).

Important note: Except for the exceptions provided for in section 1944 of the Civil Code of Québec (sublease exceeding 12 months or death of the tenant), a landlord may not send a notice of non-renewal. Tenants have the right to remain in the dwelling, and it is up to them to decide whether or not they wish to renew the lease. If you are in one of these situations, note that notices of non-renewal must also be sent within the usual renewal period. CORPIQ also provides notice templates for these more specific situations, if needed.

 

 

3. When must I send the lease renewal notice to my tenants?

Refer to the back of your lease or to the table below to identify the specific dates to be respected based on the lease term. For example:

• For a standard lease from July 1 to June 30, the notice must be sent between January 1 and March 31 (3 to 6 months before the end).

• For a short-term lease (less than 12 months) ending on June 30, the notice must be sent in May (1 to 2 months before the end).

• For an indeterminate-term lease where you wish to increase the rent as of July 1, like your other tenants, the notice must also be sent in May (1 to 2 months before the proposed modification).

Be careful: A renewal notice sent outside the prescribed period will be considered invalid. However, a tenant may not claim that your notice was late if you have proof that it was sent within the time limits prescribed by law.

To determine which calculation grid to use to calculate your rent increase, you must first identify the reference period applicable to your lease renewal. To do so, refer to the calculation tools available on the TAL website. For example, for leases renewed as of April 2, 2026, the 2026 calculation tool will apply for rent fixation.

 

 

4. What are the best ways to deliver a lease renewal notice?

It is essential to obtain proof of receipt from each tenant. Tenants have one month to respond to the notice; failing which, they are deemed to have accepted the modifications.

The recommended methods of delivery are:

• Hand delivery with acknowledgment of receipt (see the template available on the CORPIQ website, if needed);
  
  

• Registered mail with signature (note that if the tenant does not collect the mail, another proof will be required);

• When tracking your letter on the Canada Post website, ensure that the signature is indeed that of your tenant. If not, you must obtain additional confirmation of receipt by another means (text message, email, etc.). It may happen that the signature does not appear on the Canada Post website, in which case you must contact them to view it.
  
  

• Certified email via Pronotif, provided that prior authorization for electronic communication was obtained through the CORPIQ lease annex or during an initial transmission directly on the platform.

• You must ensure that each tenant has a valid email address. Therefore, two tenants cannot use the same email address in this case.
  
  

• Bailiff (CORPIQ provides a list of partners).

Avoid verbal renewals: “Words vanish, writing remains.” If you use email or another messaging service, ensure that each tenant confirms receipt of the document.

 

 

5. Must I send a renewal notice to each tenant?

Yes. Each tenant must receive a renewal notice and acknowledge receipt. For example, if two tenants are named on the lease, a notice delivered by hand must be signed by both tenants. One signature is not sufficient. It is therefore impossible to send a single registered letter to multiple tenants, since only one person can sign for receipt of the envelope.

 

 

6.  Is there a fixed percentage for rent increases in Québec?

No. Each year, the TAL publishes scenarios and a fictitious average, which are often a source of confusion. Landlords may propose an increase they consider reasonable. If the tenant accepts it, it is valid. In the event of a dispute, if the landlord is unable to reach an agreement with the tenant, the landlord must file an application to modify the lease with the Tribunal administratif du logement to have the rent fixed.

The Tribunal fixes the rent using a tool that, for 2026, takes into account:

• a base percentage calculated from the Québec CPI;

• increases in taxes and insurance when the variation exceeds the base percentage; 

• major work; 

• expenses resulting from the implementation of a service or the addition of an accessory or an appurtenance.

It is strongly recommended to use the calculation tool annually to assess your room for manoeuvre and strengthen your negotiating position.

 

 

7. What should I do if my tenant refuses the lease renewal notice?

In accordance with section 1945 of the Civil Code of Québec, the tenant has one month from receipt of the renewal notice to respond. If the tenant fails to respond within that period, the tenant is deemed to have accepted all modifications set out in the notice.

However, if the tenant sends you a written refusal within the one-month period, you should, within one month of receiving the refusal, file an “Application to Modify the Lease” with the TAL.

Note that it is always possible to negotiate with the tenant to reach an agreement in order to avoid going to tribunal. If so, it is essential to put that agreement in writing to protect yourself in the event of a dispute (see the template available on the CORPIQ website). However, never forget the deadline you have to file your application. This deadline does not restart with each new proposal by either party; it remains one month from the date the landlord receives the tenant’s refusal. If you miss this deadline and no agreement is ultimately reached, your lease will be renewed under the same conditions as the previous term (that is, without an increase or modifications). You will not be able to recover this increase during the following year’s renewal period.

Also note that if you receive the tenant’s response “after the deadline,” but the tenant is able to prove that the response was sent within the prescribed time, the response is still valid. For example, a landlord sends a renewal notice on February 15, and the tenant sends a refusal by registered mail on March 12. Although the landlord collects the letter at the post office on March 18, the tenant has still responded within the one-month period. However, the landlord’s deadline remains one month from receipt of the refusal to file an application if no agreement is reached (in this example, until April 18).

Important note: When referring to a one-month period, it means a calendar month from date to date, not 30 days (for example, from February 15 to March 15). This distinction is important, as several months do not have 30 days.

Furthermore, if you file your application with the Tribunal administratif du logement on the last day of your one-month deadline, you must ensure that it is submitted before 4:30 p.m. If it is submitted after that time, the application is deemed to be received on the next business day, and you will be out of time.

 

 

8. Can I include an expense that was overlooked the previous year?

As indicated above in Question 6, you may propose a rent increase that you consider reasonable, and if your tenant accepts it, it is perfectly legal. However, if the tenant contests the increase and you must go before the TAL to have the rent fixed, expenses from previous years cannot be taken into account for a new increase. Only those expenses that fall within the reference year of the calculation tool will be accepted.

For example, if I have the rent fixed for a lease renewed on July 1, 2026, and I use the 2026 calculation tool, which takes into account capital expenditures from the 2025 calendar year, I cannot include expenses incurred in 2024.

It is therefore also not advisable to attempt to split an expense over several years in the calculation tool. For example, if I incurred a major expense of $100,000 on my building in 2025 and attempt to include $50,000 in my 2026 calculation tool and the other $50,000 the following year in 2027: if tenants accept the increase this year but contest it the following year, the increase related to the second $50,000 cannot be taken into account and will therefore be lost.

 

 

9. Can I include an expense I forgot last year?

The RL-31 slip is used to report information regarding the occupancy of a dwelling as of December 31 of the relevant year. The information provided on this slip is used by the tenant or subtenant who applies for the solidarity tax credit in their income tax return.

It must therefore be provided to all tenants and/or subtenants who occupied your dwelling on December 31. If your tenant moved before December 31, they must obtain the slip from their new landlord with whom they were residing on that date.

This slip must be produced and provided to the tenant no later than the end of February. It is considered a best practice to send this slip together with the lease renewal notice. A CORPIQ article with all the details is also available here.

 

 

10. Does CORPIQ provide notice templates?

Of course! Visit the CORPIQ website, log into the member area, and click on “Letter and Form Templates” in your tools. There is a complete section on renewal notices for fixed-term and indeterminate-term leases, all compliant with the Civil Code of Québec and applicable legislation. Note that you must not remove the basic elements from our templates, failing which your renewal notice may be invalid, in accordance with section 1943 of the Civil Code of Québec.

In addition, landlords who are still awaiting a rent fixation judgment from the TAL, or those for whom Section F applies (buildings constructed five years ago or less, or whose residential use results from a change of use within the last five years), will also find a notice adapted to their situation on our website.

Important note: As of December 26, 2024, the Regulation respecting the mandatory content of a renewal notice came into force. This regulation states that the renewal notice must now reproduce the annex included in the regulation. It is therefore essential to use the new renewal notice templates and not to use templates previously saved on your computer or printed copies from prior years, which are now obsolete.

It is also important to note that CORPIQ and the TAL also provide a tenant’s response notice to the lease renewal notice; however, it is not legally mandatory to include it with your renewal notice. This tenant response notice should not be confused with the legal obligation to inform the tenant of the three response options in the renewal notice. Rest assured that these options already appear in our renewal notice templates.

Finally, if you have leases that include services tied to the tenant personally (for example, a seniors’ residence), ensure that you use a renewal notice template that specifies the amount or percentage attributable to personal services. This amendment came into force on January 1, 2026, and applies to notices sent as of that date. A separate notice for this purpose is available on the CORPIQ and TAL websites.