Rental property in Quebec · Law and taxation
A plex is sold on a yield figure and lived on a set of rules. The Civil Code governs the lease, the Administrative Housing Tribunal governs how leases end, and the Canada Revenue Agency and Revenu Quebec govern what is left in your pocket.
The numbers to remember
- One month: the most rent a lessor may exact in advance, with no deposit on top (art. 1904).
- 4%: the Class 1 capital cost allowance rate that applies to buildings, per the CRA.
- Two months' notice within six months of the death: the deadline to resiliate a deceased tenant's lease (art. 1939).
- Three years: the suspension of eviction for subdivision, enlargement or change of destination since the Act assented to on June 6, 2024.
- 90 days: below that, a rental is a short-term rental for CRA purposes, and non-compliance denies the deductions.
The principle behind all of it
In Quebec the residential lease is of public order on the essentials. A clause that contradicts the law does not become valid because someone signed it, and an owner who inherits a non-compliant practice genuinely inherits it. On the tax side the logic is symmetrical: what you deduct today is often recaptured at sale.
Every page in this guide
- Rental income tax in Quebec: the two forms most owners forget one of
- Capital cost allowance on a rental property: the 4% that comes back at sale
- Repair or improvement: the CRA test that decides your deduction
- Security deposits are illegal in Quebec: article 1904, word for word
- Death of a tenant in Quebec: the lease does not die with them
- Roommates in Quebec: by default your roommate owes only their share
- Subdividing or enlarging a dwelling: eviction is suspended for three years
- Converting a rental property to divided co-ownership: the ten steps
- Non-compliant short-term rental: the CRA now denies the deductions
Where this actually lands: at purchase, not after
These rules have one thing in common. They are not discovered while managing a building, they are discovered while buying one. A lease carrying a void clause, a deposit that was never lawful, a dwelling occupied by a succession, a subdivision project the law has suspended: each of those is sold along with the building.
That is why we read the leases, the building's tax position and the history of notices before making an offer on a plex, never after acceptance.
Three habits before buying a rental property
- Ask for every lease and its schedules, not just the rent roll. The clauses hide in the schedules.
- Have the tax modelled before the offer, including the seller's CCA position and what you intend to do with your own.
- Check what the law still permits for your plan. Repossession, eviction and conversion rules have changed and keep changing.
Sources: the official English version of the Civil Code of Quebec (legisquebec.gouv.qc.ca), the Administrative Housing Tribunal (tal.gouv.qc.ca), Canada Revenue Agency guide T4036 Rental Income and Revenu Quebec, consulted 11 September 2026. This page informs; it is neither legal nor tax advice. For a specific situation, consult a notary, a lawyer or an accountant.
Update, 13 September 2026
Two parties propose opposite directions on residential leases. See rent control and its effect on a plex owner and the five platforms compared.
Short-term rental: the full Quebec rules
Renting by the night falls under a regime separate from the residential lease. See the 2026 short-term rental rules.
Published by the Loaa & Manseur team, number one team at RE/MAX Platine in 2024 and 2025. Tell us about your project.