Top 5 pitfalls to avoid when renewing a lease

When it comes to renewing a lease, it's essential to understand the legal obligations involved. To ensure your lease renewal is compliant and properly handled, here are five common pitfalls to avoid.

1. Assuming the lease doesn’t renew automatically

In Quebec, a residential lease automatically renews if the landlord does not send a notice of modification and the tenant does not send a notice of non-renewal within the prescribed time frame. As a result,  if you wish to increase the rent and/or change a lease condition, you must send the tenant a notice of modification within the required period. Otherwise, the lease will renew under the same conditions—except for leases longer than 12 months, which are only automatically renewed for a 12-month term.

2. Sending an incomplete renewal notice

A lease renewal notice must comply with article 1943 of the Civil Code of Québec and the Regulation respecting mandatory content of a notice of modification of the lease of a dwelling. It must be provided in writing and include all legally required information, such as the new rent amount, lease term, any proposed changes, and all other mandatory elements. Even if you hand-deliver the notice, make sure to get a signed acknowledgment of receipt from each tenant. CORPIQ offers its members tailored templates for both fixed-term and indeterminate-term leases. The Tribunal administratif du logement (TAL) also provides an official form.

3. Missing the deadlines to send the notice

To be valid, the lease modification notice must be sent within the following time frames:

• For leases of 12 months or more: between three and six months before the lease ends
  

• For leases of less than 12 months: between one and two months before the lease ends
  

• For leases with no fixed term: between one and two months before the intended date for the changes to take effect

4. Using an untraceable communication method

It is strongly recommended to use a method that provides proof of the notice’s receipt, such as Pronotif (provided the tenant has previously authorized email communications), registered mail, bailiff service, or hand delivery with a signed proof of receipt. These proofs are essential if the case ends up before the TAL. If using registered mail, ensure that if the tenant is absent during delivery, they actually retrieve the notice at the post office so you can obtain proof of receipt.

5. Waiting too long to open a case with the TAL after a tenant’s refusal

Remember that if the tenant refuses the proposed lease modifications, you have one month from the date you receive their refusal to file a request with the TAL to have the rent set and/or a decision made on the proposed changes. You may try to negotiate with the tenant during this period, but doing so does not extend the legal deadline to file. If you fail to submit your application within the one-month period, the lease will renew under the same conditions as the previous term.

Renewing a lease requires diligence, a clear process, and a solid understanding of the legal framework. By avoiding these five common mistakes and using the tools provided by CORPIQ, you’ll be in a strong position to manage lease renewals in full compliance. If you have any questions, feel free to contact our advisors or refer to our lease renewal checklist published in our PROPRIO magazine.