Quebec's rent increase rules are changing in 2026— Here's what that means for tenants
Are you due for a rent increase?
The current method for calculating rent increases has been around since the 1980s and relies on over a dozen annual economic indicators tracked by Statistics Canada.
A major overhaul to how rent increases are calculated in Quebec takes effect January 1, 2026, and it's going to change the way landlords and tenants handle annual hikes.
The new rules come after the Tribunal administratif du logement (TAL) suggested a historic 5.9% rent increase in January 2025, the highest recommendation in 30 years.
That eye-popping figure pushed the CAQ government to announce reforms back in April, though tenant rights groups criticized the changes at the time.
The old system is getting simplified
The current method for calculating rent increases has been around since the 1980s and relies on over a dozen annual economic indicators tracked by Statistics Canada.
Starting in 2026, that gets whittled down to just four key factors:
- Inflation: Measured using Quebec's Consumer Price Index, averaged over the past three years instead of a single year.
- Municipal property taxes and services: Based on the change between the reference period and the following year, proportional to each unit.
- School property taxes: Calculated annually and added to the final calculation only if it exceeds the inflation rate.
- Fire and liability insurance premiums: Factored into the overall calculation.
More renovation costs will justify rent hikes
The new regulations also lay out a detailed list of major renovations that landlords can use to justify raising rent, including:
- Roof or foundation repairs
- Major kitchen or bathroom renovations
- Door and window replacements
- Energy efficiency upgrades
- Safety system updates to meet current standards
What this means for tenants
The reform doesn't automatically mean higher or lower rent increases, but it does change how disputes get handled at the TAL.
The calculations are now more structured and technical, which could make it harder to understand or challenge a proposed increase without clear information from your landlord.
One tenant-friendly rule: landlords must now deduct any subsidies or financial aid they received for renovation work. That's designed to prevent tenants from paying for costs that were already covered by government programs.
The takeaway? Always ask for a detailed breakdown of any proposed rent increase.
What this means for landlords
For property owners, the biggest change is more clarity and predictability.
The list of recognized major renovations makes it easier to justify certain rent increases before the TAL. Rules around taxes, insurance, and added services are also better defined now.
However, landlords will need to work within tighter calculations and must subtract any financial assistance they received before increasing rent.
Special rules for seniors' residences
Private seniors' residences will follow a separate calculation. The portion of rent tied to care services will be adjusted using a health services index rather than general inflation.
This article is adapted from "La hausse des loyers va être mieux réglementée dès 2026 - Voici comment ça t'impactera," which was published on Narcity.
