Rent Setting Criteria: Necessary Increases, but Reflective of the Current System’s Shortcomings
Press Releases
Due to the calculation method for rent setting criteria used by the Tribunal administratif du logement (TAL), past recommendations for rent increases have not kept pace with inflation, leading, since the early 2000s, to a gap of up to 20% between recommended increases and inflation.

This year, while the suggested rent increases are significant—much like last year—they are necessary and reflect the accumulated shortfall caused by an inadequate calculation method that fails to align with the evolution of real costs.
Beyond its complexity, the current method has several shortcomings and should be adjusted regarding the calculation of net income and capital expenditures for major renovations. Alongside failing to meet the objective of "promoting the maintenance and improvement of the housing stock," this method generates misunderstanding among stakeholders and causes gridlock at the TAL over rent-setting disputes.
CORPIQ advocates for a reform of the rent-setting criteria to ensure the method is more balanced, fair, and widely understood. Such a revision must mitigate abrupt impacts for tenants while ensuring landlords have all the necessary resources to maintain the sustainability of the rental housing stock.
A Necessary Revision to Achieve Balance and Protect the Rental Market
While the latest CMHC report suggests that pressure on the rental market may ease, significant challenges remain in preserving the rental housing stock and maintaining affordability.
Quebec faces a major challenge: the aging of its housing stock in a context where a large portion of rental buildings were constructed before 1979. It is therefore essential to remove barriers to modernizing the rental stock, ensuring the durability and quality of housing while maintaining affordability. A revision of the rent-setting criteria is imperative:
- Revise capital expenditures for major renovations to reduce the amortization period to 15 years;
- Revise the calculation of net income by replacing it with the general Consumer Price Index (CPI), considering that it reflects the loss of purchasing power for both tenants and landlords, with a 3-year moving average. This calculation method would help smooth variations from year to year.