Rent increase notices and modification of the lease

MONTREAL, Jan. 14, 2015 /CNW Telbec/ - In Québec, the vast majority of leases have a one-year term ending on June 30. Since the lease renewal period has started, the Régie du logement wishes to remind the public of the rules applicable to rent increases for rental housing. The rules are the same when a landlord wishes to modify other conditions of a lease.

Generally speaking, leases for dwellings are renewed automatically at term for the same period of time and at the same rent, unless landlords advise tenants in writing that they want to increase the rent. For one-year leases ending on June 30, 2015, the notice can be given between January 1 and March 31, 2015. The period differs in the case of a rented room or if the lease is for a different duration.

Upon receipt of the landlord's notice, the tenant has three options:

• Accept the increase: no reply is necessary. The lease is renewed and the tenant pays the new rent as of July 1, 2015.
• Refuse the increase, in which case the lease is renewed for another year. The tenant is not obliged to vacate the dwelling, but the new rent must still be determined.
• Not renew the lease: the tenant vacates the dwelling at the end of the lease.

In the last two cases, the tenant is required to notify the landlord in writing of his or her decision within the month after receiving the notice. If the tenant does not do so, the lease will be renewed automatically, and the tenant will have to pay the new amount of rent as of July 1, 2015.

If a tenant refuses the increase, the landlord can, within the month following receipt of the refusal, file with the Régie du logement an application for fixing of the rent.

If a landlord does not submit an application to the Régie, the lease is renewed at the same rent and conditions.

Steps for modifying the lease and periods for giving notice
	Step 1: Notice by lessor	Step 2: Lessee's reply	Step 3: Application to the Régie du lodgement by the lessor
Lease of 12 months or more	Between 3 and 6 months before termination of the lease	Within 1 month after receiving the notice of modification.   If the lessee fails to reply, he or she is deemed to have accepted the modification.	Within 1 month after receiving of the lessee's refusal. Otherwise, the lease is renewed of right on the same conditions.
Lease of less than 12 months	Between 1 and 2 months before termination of the lease
Lease with an indeterminate term	Between 1 and 2 months before proposed modification
Lease for a room	Between 10 and 20 days before the termination of a fixed term lease or before the proposed modification if the lease has an indeterminate term

New building or a building recently converted for residential purposes

It is important to note that a tenant cannot refuse a rent increase for a dwelling in a building less than five years old or a building converted for residential rental purposes less than five years ago. In the event of a refusal, the tenant must vacate the dwelling at the end of the lease. However, that restriction applies only if stipulated in the lease (section F of the lease – Restrictions on the right to have the rent fixed and the lease modified).

Models notices and replies are available on the Régie du logement Website, at www.rdl.gouv.qc.ca.

SOURCE Régie du logement

The Régie can also be reached by phone: Montréal, Laval and Longueuil region, [phone]; Other regions, 1 800 683-2245