Everything you need to know about lease renewals
Did you just receive a lease renewal notice? Have some questions? Browse this article to learn more about this regulated process. From modified conditions to rent increases, we’ve got all the info!
What is lease renewal?
In Quebec, lease renewal – or lease extension – occurs automatically on the same terms when the lease ends. It is generally renewed for the same length, except if the term of the lease is more than 12 months.[1]
However, the landlord may make certain changes (e.g., rent, heating, or parking). In this case, they must send a notice of rent increase and modification of another condition of the lease to each tenant.[2]
Lease renewal: deadline for giving notice
The deadline varies depending on the type of lease and its duration. For leases of 12 months or more, give 3 to 6 months’ notice. For leases of less than 12 months, give 1 to 2 months’ notice. Visit the Tribunal administratif du logement website to learn more.
What should be included in a lease renewal notice?
The notice must state the proposed changes including rent, length of the lease, and services provided. It must notify the tenant that they must respond within one month.[3]
The tenant can respond in three ways:
- Accept the lease renewal and the changes
- Decide not to renew the lease and leave the apartment when the lease ends
- Refuse the changes but renew the lease
A tenant who refuses a rent increase or changes to the lease is not required to leave the premises. In this case, the lease will be renewed with an issue and both parties will have to come to an agreement or file an application with the Tribunal administratif du logement.[4]
Not responding to a renewal notice is equivalent to accepting it. If a tenant refuses a condition or decides to move out, they must inform the landlord by completing the lessee’s response to a notice of rent increase and modification of another condition of the lease form or a Notice of non-renewal of the lease.[5]
How do I know if a rent increase is valid?
There are no fixed rent increases.[6] However, the landlord must respect the foundations of the Civil Code of Québec that take operating expenses into account:[7]
- Property and school taxes
- Insurance premiums
- Electricity and heating costs
- Maintenance expenses
- Service and management fees
Major repairs and improvements (e.g., roofing, doors, and windows) can also affect rent increases.
Thinking about leaving your dwelling? It’s best to do things in the right order, so make sure you find a new apartment before notifying your landlord!
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See also:
Joint tenancy: benefits, obligations and lease
Rent-to-own: an answer to home ownership?
What is the percentage of the 2023 rent increase?
[2] https://www.tal.gouv.qc.ca/en/renewal-of-the-lease-and-fixing-of-rent/changing-a-condition-of-the-lease
[3] https://www.tal.gouv.qc.ca/en/renewal-of-the-lease-and-fixing-of-rent/changing-a-condition-of-the-lease