Plex · Rent increase · 2026
Three point one percent, and many nuances: what the TAL recommends, what it lets you add for work, taxes and insurance, and the exact calendar that decides whether an increase holds or falls.
Since January 1, 2026, the Tribunal administratif du logement applies a new rent-increase method built on four variables instead of the previous thirteen criteria: the three-year average of Quebec's consumer price index (3.1% for 2026), capital expenditures (up to 5% of the cost of major work per year, amortized over 20 years), the change in municipal and school taxes and the change in insurance premiums, the last two only for the part exceeding inflation. The base rate is therefore 3.1% for leases renewed after April 1, 2026, versus 4.5% for those renewed on April 1 or earlier (still under the old method), and 6.7% for the "services" portion in seniors' residences; in 2025 the average recommended increase was 5.9%, the highest in thirty years. The landlord sends the notice of modification three to six months before the end of a twelve-month lease; the tenant has one month to refuse (in writing) or leave; if they refuse, the landlord has one month to ask the TAL to set the rent, otherwise the lease renews at the old rent. A new building or one whose use changed less than five years ago (clause F) escapes rent setting; a new tenant can contest a rent higher than the previous lease (clause G) within ten days of signing, or within two months if section G was not filled in.
| Variable | 2026 rule | Example on a $1,200 rent |
|---|---|---|
| Base indexation (Quebec CPI, 3-year average) | 3.1% for leases renewed after April 1, 2026; 4.5% for those renewed on April 1 or earlier (old method) | +$37.20 a month |
| Capital expenditures (major work: roof, windows, structure, renovated unit) | Up to 5% of the cost of the work per year, amortized over 20 years, shared among the units concerned | $24,000 roof on a triplex: $1,200 a year, ≈ $33 a month per unit |
| Municipal and school taxes | Only the increase beyond inflation is shared among the units | Depends on the roll and the municipal budget |
| Insurance premiums | Same principle: share beyond inflation | Variable |
| "Services" portion in a seniors' residence | 6.7% | On the services portion only |
The TAL's official calculator is updated every January; the figures above are those published for 2026. In 2025 the old method gave 5.9% for an unheated unit; the three-year moving average now smooths high-inflation years.
| Step | Deadline (12-month lease) | If missed |
|---|---|---|
| Notice of lease modification (TAL form, amount and date) | 3 to 6 months before the end of the lease (for a lease ending June 30: between January 1 and March 31) | The lease renews on the same terms |
| Tenant's reply | 1 month after receipt: accepts, refuses in writing and stays, or leaves | Silence = acceptance of the increase |
| Landlord's application to the TAL to set the rent | 1 month after the refusal | The lease renews at the old rent |
| TAL decision | Several months; the rent set is retroactive to the renewal date |
Clause F: a building built or whose use changed five years ago or less is not subject to rent setting if the clause is in the lease; the tenant can refuse the increase and leave, not contest it. Clause G: the landlord must state in the lease the lowest rent paid in the previous twelve months; the new tenant can apply to set the rent within ten days of signing, or within two months on learning the section was not filled in or was false, and the TAL can lower the rent. Since 2024, increases above the recommendations must be justified with documents (invoices, tax bills, policies). A plex bought with very low rents therefore only "returns to market" at the TAL's pace or when tenants leave voluntarily, which must be reflected in the price paid (see the return calculation).
3.1% base for leases renewed after April 1, 2026 (4.5% before), plus a share of major work (up to 5% of the cost per year) and of tax and insurance increases beyond inflation.
Between three and six months before the end of the lease; for a lease ending June 30, between January 1 and March 31.
File an application to set the rent at the TAL within a month of the refusal, with supporting documents; otherwise the rent stays unchanged.
Not to rent setting for five years if clause F is in the lease; the tenant can refuse the increase and leave.
The plex file: plex forecasts 2027 (French), welcome tax on a plex (French) and the RénoPlex grant.
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Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
24 hours' notice before a showing, six months for a repossession notice, an eviction indemnity of one month per year from 3 to 24 months, and 10 days or 3 months for major work: every Tribunal deadline is gathered in our landlord and tenant guide.
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