nouveau reglement fixation des loyers

Quebec’s New Rent Control Rules Take Effect January 1: What Tenants and Landlords Need to Know

Starting January 1, 2025, Quebec is rolling out a major overhaul of its rent-setting regulations—a move that’s sparking heated debate across the province. Dubbed the “Duranceau reform” after Housing Minister France-Élaine Duranceau, the new rules aim to modernize how rent increases are calculated and communicated. But while the government frames it as a step toward housing stability, tenant advocacy groups are sounding the alarm, calling it a direct threat to renters’ rights.

For renters in Montreal, Quebec City, Laval, and beyond—especially those in older buildings or tight housing markets—this isn’t just policy jargon. It’s about affordability, predictability, and the very future of tenant protections in one of Canada’s most rental-dependent provinces.

Main Narrative: A Policy Shift with High Stakes

The core of the reform centers on how landlords can justify and implement rent hikes. Under the previous system, rent increases were largely governed by the Regulation respecting the criteria for fixing rent, which allowed for annual adjustments based on inflation, building maintenance costs, and major repairs—subject to approval by the Tribunal administratif du logement (TAL).

The new regulation, however, introduces stricter documentation requirements and narrows the scope of allowable increases. Landlords must now provide detailed invoices and proof of expenses for any claimed capital improvements before applying for above-inflation hikes. Additionally, the government has capped certain categories of “extraordinary expenses” that previously justified significant rent jumps.

While these changes may seem technical, their real-world impact is profound. In a province where over 40% of households rent—and where vacancy rates hover near historic lows—even small shifts in rent policy can ripple through entire communities.

Tenant groups argue the reform doesn’t go far enough to protect vulnerable renters. The Regroupement des comités logement et associations de locataires du Québec (RCLALQ) has been particularly vocal, labeling the changes an “attack on tenants’ rights.” They contend that loopholes still allow landlords to exploit renovation claims and that the burden of proof remains too high for renters to challenge unjustified increases.

On the other side, landlord associations and housing developers warn that excessive regulation could discourage investment in rental housing—exacerbating the very shortage the government seeks to solve.

This tension underscores a broader dilemma: how to balance tenant security with landlord incentives in a market under immense pressure.

Recent Updates: What’s Actually Changing?

As of January 1, 2025, several key provisions of the new rent regulation are now in force. Here’s what you need to know, based on verified reports from Le Devoir, Protégez-Vous, and Vingt55:

• Stricter Documentation: Landlords seeking rent increases above the annual guideline (set each year by the TAL) must submit itemized receipts and contractor invoices for any claimed improvements. Vague or incomplete submissions will be rejected.

• Capped “Major Repair” Claims: Expenses related to cosmetic upgrades or routine maintenance can no longer be used to justify large rent hikes. Only structural or essential system repairs (e.g., roofing, plumbing, electrical) qualify—and even then, only up to a percentage of the building’s assessed value.

• Transparency Requirements: All rent increase notices must include a breakdown of how the new amount was calculated, referencing specific expenses and the applicable legal criteria.

• No Retroactive Increases: Landlords cannot apply for rent hikes retroactively for work completed in prior years unless previously approved by the TAL.

These changes follow months of consultation and legislative review. Housing Minister Duranceau has repeatedly emphasized that the goal is “fairness and clarity” for both parties. “We’re closing loopholes that allowed some landlords to impose unreasonable increases under the guise of renovations,” she stated in a December press briefing covered by Le Devoir.

However, tenant advocates remain skeptical. In a statement cited by Vingt55, the RCLALQ warned: “This reform pretends to protect tenants while actually weakening our ability to contest abusive practices. The burden of proof still falls on us—the renters—to fight in court.”

The timeline of implementation has been swift: - June 2024: Draft regulation published for public consultation. - October 2024: Final version approved by the Quebec Cabinet. - December 2024: Public awareness campaign launched by the Ministry of Municipal Affairs and Housing. - January 1, 2025: New rules take effect province-wide.

Contextual Background: Why Rent Regulation Matters in Quebec

To understand the significance of this reform, it helps to look at Quebec’s unique rental landscape.

Unlike most Canadian provinces, Quebec has long maintained a robust system of rent control. Since the 1970s, the province has required landlords to justify rent increases above inflation, with disputes resolved by the TAL—a quasi-judicial body designed to be accessible to ordinary tenants.

This tradition stems from Quebec’s strong tenant protection ethos, rooted in civil law traditions and a history of social housing advocacy. In cities like Montreal, where nearly two-thirds of residents rent, tenant unions have played a pivotal role in shaping housing policy.

Yet the system hasn’t been without flaws. Critics—including some economists—have argued that strict rent controls can reduce the supply of rental units by disincentivizing new construction or prompting conversions to condos. A 2022 study by the Institut du Québec found that rent-controlled buildings saw 15% less reinvestment in maintenance compared to non-controlled units.

Meanwhile, the pandemic intensified housing stress. With remote work driving demand for larger spaces and immigration fueling population growth, Quebec’s rental vacancy rate dropped to 1.8% in 2023—the lowest in decades, according to CMHC data.

Against this backdrop, the Duranceau reform represents an attempt to modernize a decades-old framework. It’s not the first time Quebec has tweaked its rent rules: similar adjustments occurred in 2005, 2013, and 2019. But this latest iteration is the most comprehensive since the early 2000s.

Stakeholders are deeply divided. The Corporation des propriétaires immobiliers du Québec (CORPIQ) supports clearer guidelines but warns that “overregulation risks driving small landlords out of the market.” Conversely, grassroots groups like the Front d’action populaire en réaménagement urbain (FRAPRU) argue that without stronger caps and anti-eviction measures, the reform is “window dressing.”

Immediate Effects: Who Wins, Who Loses?

So, what does this mean for everyday Quebecers?

For Tenants:
The new rules offer modest but meaningful protections. Renters facing steep increases due to “renovictions” or inflated repair claims now have better tools to challenge them. The transparency requirement means landlords can’t hide behind vague justifications. However, as the RCLALQ points out, actually fighting a disputed increase still requires time, legal knowledge, and often financial risk—barriers that disproportionately affect low-income, elderly, or non-francophone tenants.

For Landlords:
Small-scale landlords (those owning 1–5 units) may find compliance burdensome, especially if they lack administrative support. Larger property management firms, meanwhile, are better equipped to handle documentation but may see reduced flexibility in pricing strategies. Some analysts predict a short-term dip in renovation activity as landlords reassess cost-benefit calculations.

For the Housing Market:
Early indicators suggest the reform won’t dramatically alter supply dynamics—but it could influence investor sentiment. Real estate investment trusts (REITs) with Quebec portfolios have remained cautiously optimistic, noting that stable tenancies reduce turnover costs. Still, if the rules deter new rental construction, long-term shortages could worsen.

Economically, the reform aligns with Quebec’s broader housing strategy, which includes $2.8 billion in funding for affordable housing over five years. But critics argue that without addressing zoning laws, construction delays, and foreign investment, rent regulation alone can’t solve the crisis.

Socially, the debate reflects deeper tensions around housing as a human right versus a commodity. In a province where tenant culture is strong, the government’s approach walks a tightrope—trying to appease both renters demanding security and developers needing returns.

Future Outlook: What Comes Next?

Looking ahead, several scenarios are possible.

Scenario 1: Stabilization and Compliance
If enforcement is consistent and tenants are well-informed, the new rules could lead to more predictable rent increases and fewer disputes. The TAL may see a temporary spike in