Willow BergeronFour months after Quebec's new rent calculation formula came into force on January 1, 2026, roughly 1.5 million tenant households across the province are receiving their first rent increase notices calculated under the new system — and many are shocked by the numbers. The reform, designed by then-Housing Minister France-Élaine Duranceau and now being administered under her successor Karine Boivin Roy, replaced a 40-year-old 13-variable system with a streamlined 4-factor model. The 2026 baseline rate set by the Tribunal administratif du logement (TAL) is 3.1%, based on a 3-year average of Quebec's consumer price index. But a controversial renovation clause has tenant advocates — and their lawyers — raising alarms.
The backstory deepened in recent weeks when Le Devoir published a cabinet memorandum Duranceau sent to Quebec's Council of Ministers on March 27, 2025 — two weeks before her public announcement of the reform. In it, she explicitly acknowledged the new formula "could have an upward effect on rents for housing that has undergone renovations" and warned that "tenants, and particularly vulnerable tenants such as seniors or young people, could be impacted." Nearly 15,000 tenants signed a petition demanding the regulation be withdrawn. It wasn't. Duranceau was moved to the Treasury Board in Premier Christine Fréchette's April 21, 2026 cabinet reshuffle — but her rent reform remains firmly in place.
The Renovation Clause: Why Tenants Are Worried
The old rent calculation system treated renovation costs as one factor among many, with limited pass-through to tenants. The new system introduces a fixed-rate mechanism: landlords can pass on capital expenditure costs to tenants at a rate of 5% per year, amortized over 20 years. There is no ceiling on the renovations that qualify.
Tenant advocacy groups, including RCLALQ, argue this creates an uncapped avenue for rent increases in buildings where landlords undertake significant renovations — regardless of whether the work directly improves conditions for the sitting tenant. Landlord associations, including CORPIQ and APQ, counter that the reform restores balance to a system that had become difficult to navigate, particularly for smaller independent landlords.
The TAL's 2025 recommended increase rate was 5.9% — the highest in 30 years — which was the immediate catalyst for the reform. The 2026 rate of 3.1% reflects the three-year CPI averaging built into the new formula.
What Are Your Rights as a Quebec Tenant in 2026?
Receiving a rent increase notice does not mean you must accept it. Quebec tenants have specific rights under the Civil Code of Québec and the TAL system that govern every stage of the process.
The landlord must give proper notice. For a lease renewal with a rent increase, the landlord must give written notice at least 3 months before the lease ends for a 12-month lease, or at least 1 month before the end for a shorter lease. If your landlord misses the notice period, the increase may not be valid.
You have the right to refuse the increase. When you receive a notice of rent increase, you can refuse it in writing. You must do so within one month of receiving the notice. If you do not respond, the law deems you to have accepted the new amount.
The TAL adjudicates disputes. If you refuse the increase and the landlord disagrees with your refusal, the landlord must apply to the Tribunal administratif du logement within one month of your refusal. The TAL will then determine a fair rent increase based on the new 4-factor formula. The burden is on the landlord to justify their proposed increase with documentation — including invoices for any renovation work they are seeking to pass on.
Renovation costs must be documented. If your landlord is relying on the 5% renovation amortization to justify a higher-than-formula increase, they must provide you with documentation of the work performed and its cost. You are entitled to request this information as part of the TAL process.
Eviction for renovations is separate and regulated. So-called "renovictions" — evictions so landlords can renovate and re-rent at higher prices — remain subject to strict rules in Quebec. A landlord must obtain authorization from the TAL to evict a tenant for major work, and must pay three months' compensation plus moving costs. Tenants also have a right of first refusal to return to the unit after renovations at the pre-renovation rent, adjusted for the increases that would have applied had they stayed.
What If You Have Already Accepted an Increase?
Accepting a rent increase in writing — or by default (failing to refuse within one month) — creates a binding contractual obligation. However, if you accepted under misinformation — for example, if the landlord did not disclose the basis for the increase — a lawyer can assess whether the agreement can be challenged.
More commonly, tenants who accepted an increase and later discover the landlord applied the renovation clause incorrectly may have grounds to contest the methodology at the TAL during a subsequent lease renewal.
When to Consult a Legal Expert
Navigating Quebec's rental tribunal system is not trivial, particularly for tenants unfamiliar with administrative law procedures. A legal professional specializing in housing law can help you in three concrete ways: reviewing the increase notice to confirm it was properly issued, preparing your written refusal and supporting arguments for a TAL hearing, and representing you before the TAL if necessary.
You may also want legal advice if you believe your landlord has applied the new renovation formula incorrectly, or if you are facing a renoviction. If you own property in Montreal and are affected by the 2026 municipal tax changes alongside rising renovation costs, a legal consultation can help you understand the full financial picture from both sides of the landlord-tenant equation.
Expert Zoom connects tenants and landlords in Quebec and across Canada with housing law specialists who can assess your specific situation and advise on the most effective course of action.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Tenant and landlord rights vary by province. Consult a qualified legal professional for advice specific to your situation.
