My first plex: what to know before buying in 2026

Buying your first plex is more than just a real estate transaction. It’s often the first step toward financial independence, building wealth, and, for many, a retirement strategy. Here are the essential things to know before taking the leap this year.

What is a plex?

In Quebec, a “plex” refers to a building with stacked or side-by-side units, typically owned under a single owner, such as a duplex, triplex, etc. This format is popular for its income potential and relatively manageable scale for first-time landlords. These types of buildings represent a significant share of Quebec’s rental stock, which stands out in Canada for its large number of small residential buildings. According to the Canada Mortgage and Housing Corporation (CMHC), in 2023, nearly 44% of rental units in Quebec’s major urban centres were located in buildings with fewer than five units.

Understanding leverage

Buying a plex allows you to benefit from financial leverage through mortgage financing. By making a down payment (typically 20%), you can invest in an asset that increases in value over time. This 20% threshold is required to avoid mandatory mortgage insurance, which applies in most cases in Canada for down payments under 20%. In addition, rental income from the other units can help repay the mortgage and cover some of the operating costs.

 

Selection criteria

Before buying, location remains the top priority. Proximity to services and public transportation are key indicators. A neighbourhood in transition may offer great potential, but beware of municipal regulations or zoning changes that could impact profitability.

Also, assess the building’s condition: roof, foundation, plumbing, and electrical systems can lead to major expenses. A qualified building inspector is an essential ally at this stage.

Knowing the rules of the game

As a plex owner, you also become a property manager. That means understanding your rights and responsibilities, particularly those regulated by the Tribunal administratif du logement (TAL). Rent increases, rules around repossession or major renovations— are all regulated and must be well understood.

To support landlords, CORPIQ provides letter templates, advice from our real estate experts or partner law firms, and a suite of digital tools, including ProprioEnquête® to screen prospective tenants and Pronotif® to communicate with them in a certified way.

Living in your new plex

If you’re considering becoming an owner-occupant and the units in your plex are currently all rented, it’s essential to fully understand the rules surrounding the repossession of a rental unit. In fact, a valid repossession is only possible if the purchase is made alone or with your spouse. If you buy the property with another person, you won’t be able to repossess a unit unless you reach a mutual agreement with the current tenant. Furthermore, if the tenant meets certain criteria — related to age, duration of occupancy, and income — you may also be unable to repossess the unit. Before moving forward with your project, consult our experts to ensure your approach is feasible and complies with the law.

Financing: how to prepare

Your borrowing capacity will depend on your income, debt level, and the expected rental income  from the plex. A mortgage broker can help you find the best options, including government programs that may reduce your required down payment to 5% if you live in one of the units.

Anticipating costs and unexpected expenses

Even with reliable tenants, owning a plex requires planning. This is especially true given that Quebec’s rental stock is aging, with 71% built before 1980 (2023 Report, page 43). Beyond the mortgage, plan for a range of expenses and unexpected events.