Québec Rent Increases in 2026: What the 3.1% Guideline Really Means

The Tribunal administratif du logement (TAL) has announced its rent increase guideline for 2026, setting a baseline increase of 3.1 per cent for most residential leases.

This applies to leases renewing between April 2, 2026 and April 1, 2027. For leases renewing on or before April 1, the baseline remains higher at 4.5 per cent, reflecting the elevated inflation recorded in previous years.

It’s important to understand that this percentage is not a cap.

In Quebec, rent increase guidelines are meant to serve as a starting point for discussion between landlords and tenants, not a fixed limit. Once increases in property taxes, insurance premiums, and renovation or maintenance costs are factored in, the justified increase can exceed 3.1 per cent.

This distinction matters more than ever.

Operating costs for rental properties have risen sharply in recent years. Insurance, municipal taxes, and construction expenses remain elevated, continuing to put pressure on rental pricing across the province.

Tenants who receive a rent increase notice have one month to accept or refuse the proposed adjustment.

If a tenant refuses, they have the right to remain in the unit. The landlord then has one month to apply to the TAL to have the rent formally set. If no application is made, the lease renews under the same conditions.

In practice, many situations are resolved through negotiation.

With record volumes of rent-setting cases being filed, delays at the TAL can stretch for months. As a result, reaching an agreement outside the tribunal is often the most practical option for both parties.

Last year, renters experienced some of the steepest increases in decades.

This led the province to revise the rent-setting formula. The new inflation-based calculation was supported by landlord groups such as CORPIQ, who argued that the previous model no longer reflected the real cost of operating rental housing.

For tenants and landlords alike, the takeaway is simple.

The Quebec rent increase 2026 guideline of 3.1 per cent is a reference point, not a rule. Each rent increase must be assessed in context, based on timing, expenses, and the specific circumstances of the property.