Changes coming on how rent prices are calculated in Quebec

The Quebec government says it is simplifying the way rent prices are calculated by making changes to current regulations. The new rules will come into effect on Jan. 1, 2026.

At the start of each new year, as of Jan. 1, landlords can send a notice of lease modification to tenants whose leases end on July 1.

Quebec says modernizing the method used to calculate rent is part of a series of measures implemented under the Quebec Housing Strategy.

Adding that the amendments include ways so tenants and landlords can better understand the calculations, in hopes of having better transparency, and keeping cases out of the Quebec Rental Board.

“After more than 40 years without a major revision, it was necessary to modernize the method for calculating rents to better reflect today’s economic and social realities. With the new method, we are offering tenants and landlords a clearer, simpler, and better-defined tool,” said Caroline Proulx, Minister Responsible for Housing and Minister Responsible for the Status of Women in a press release.

“They will now be able to rely on a predictable calculation that better reflects changes in the cost of living, while promoting the maintenance of Quebec’s housing stock. This is a major step forward that will facilitate agreements while ensuring that increases remain justified and reasonable for tenants.”

Housing advocates at the Regroupement des comités logement et associations des locataires du Québec (RCLALQ) denounced the changes, calling them an attack on tenants’ rights.

“This regulation does little to correct the meagre regulatory framework that has allowed the housing crises to rage unchecked since 2020,” said Émile Boucher, a community organizer at RCLALQ. “The minister is neglecting her responsibilities to tenants: to rebalance the rental market, she should decree an immediate freeze on rent increases until measures ensuring real control in Quebec are put in place.”

RCLALQ says the changes will create an “inflationary spiral.”

“The CAQ has refused to hear or respond to criticism of its regulation, which will allow increases of at least three per cent in 2026. Once again, without effective rent controls, we know that the actual increases will be much higher,” said Shannon Franssen, interim coordinator at RCLALQ.

The changes to the Regulation respecting criteria for setting rents include:

• Replacing the calculation of operating revenues and expenses with the average change in the general consumer price index (CPI) for Québec over a three-year period;

• Maintaining the healthcare component of the CPI for Quebec for the indexation of expenses related to personal services in private seniors’ residences, while providing for separate indexation for the base amount;

• Taking into account all assistance related to the addition of new services as well as taxes and insurance.

• Encouraging landlords to maintain their properties by accelerating the recovery time for investments associated with capital expenditures through the introduction of a fixed threshold of 5 per cent;

• Including a list of the types of work considered to be capital expenditures.

Several webinars on the changes will be offered starting Jan. 9, 2026. They are open to everyone; simply register on the Quebec Rental Board website.