Each year, the Tribunal administratif du logement (TAL) publishes its indices and guidelines for calculating rent increases. These guidelines are not an absolute legal cap — a landlord can ask for more, and a tenant can accept or contest. But they're the reference the court uses in disputes.
This article describes the TAL's official method, the F notice procedure (lease modification), required deadlines, and the most frequent mistakes that void an otherwise justified increase.
The TAL's official method
The TAL doesn't set a single percentage for all of Quebec. It publishes a formula that accounts for several expense categories specific to each building:
- Evolution of municipal and school taxes
- Evolution of building insurance
- Evolution of energy costs (if provided by landlord)
- Evolution of maintenance and repair costs
- Evolution of other operating expenses
- Major work performed (capitalization amortized over years)
F notice: the mandatory procedure
To modify the rent (up or down) or any other condition at renewal, the landlord must send a written notice called the 'lease modification notice' — commonly the F notice.
Required content of the F notice
- Current rent and proposed new rent
- Effective date of modification
- Any other proposed modification (term, services, etc.)
- Mention of tenant's right to refuse and seize the TAL
- Notice date and landlord's signature
F notice deadlines
| Lease type | Notice deadline before term |
|---|---|
| 12-month or longer lease | Between 3 and 6 months before end |
| Lease under 12 months | Between 1 and 2 months before end |
| Indeterminate lease | Between 1 and 2 months before modification |
Tenant's right to respond
Once the F notice is received, the tenant has one month to respond in writing. Three options:
- 1Accept the modification — the lease renews on new terms.
- 2Refuse and leave — they notify the landlord they'll vacate at lease end.
- 3Refuse and stay — they notify the landlord they refuse the modification but want to stay. The landlord who wants to maintain the increase must seize the TAL within one month to request rent setting.
Calculating a defensible increase: practical method
- 1Gather documents: tax bills (municipal and school) for current and prior year, insurance invoices, energy bills if applicable, maintenance and repair invoices, major work invoices.
- 2Compute variation of each expense category per unit.
- 3Apply current-year TAL indices and guidelines (published in January on the TAL website) to each category.
- 4Sum the weighted variations to get the justifiable increase percentage.
- 5Apply that percentage to current rent to get the new rent.
- 6Document the calculation — you must present it to the TAL if contested.
Mistakes that void the increase
- 1F notice sent out of window — lease renewed at current terms.
- 2F notice without mention of tenant's right to refuse and seize the TAL — contestable form defect.
- 3Increase applied mid-lease without an indexation clause — void, the lease stays fixed for its term.
- 4Increase applied verbally, with no written notice — no legal effect.
- 5Calculation based on a media percentage without building-specific documentation — fragile if contested.
- 6Retaliation alleged by tenant (increase deemed disguised eviction) — can be voided by the TAL.
Special cases
New unit (Clause F)
A unit in a building under 5 years old can be excluded from TAL rent-setting rules if a Clause F is properly included in the initial lease. The exemption expires 5 years after first occupancy.
Major work mid-lease
For major work (extensive renovation, significant transformation), a specific increase may be justified — but requires a separate procedure and respects the tenant's right to remain.
Assignment or new tenant
On a new lease with a new tenant, rent can be freely negotiated at signing — but Annex G must disclose the lowest rent paid in the last 12 months (except new units < 5 years).