Rent increase after major work in Québec in 2026

You have invested in redoing the roof, replacing the heating system or modernizing the bathrooms in your rental building, and you are wondering whether you could recover part of that investment through your tenants’ rent?

In Québec, the answer has to be calculated precisely. In fact, since January 1, 2026, the rules governing a rent increase after major work have been substantially revised by the Tribunal administratif du logement (TAL), Québec’s rental housing tribunal. A new fixed rate, a new regulatory schedule, new amortization periods: the procedure is no longer the same as in 2025.

This guide explains exactly what the law allows, what it prohibits, and how to structure your approach so that a requested increase holds up before the TAL.

What the law means by a rent increase after major work

The term used in the Regulation respecting the criteria for the fixing of rent is not “major work,” but rather capital expenditures. In practical terms, these are expenses incurred for major repairs or improvements, or for the addition of a new service, accessory or dependency.

Since 2026, the regulation includes an official schedule listing eligible work (in French), which clarifies what can be included in the calculation. It includes, among other things:

• redoing the roof (shingles, membrane, insulation);
• replacing the heating or plumbing system;
• redoing the exterior cladding;
• replacing windows and exterior doors;
• adding a new service, accessory or dependency.

Note: the list is not exhaustive. The regulation specifies that major repairs and work are “in particular” those listed in the schedule, which leaves the Tribunal some room for interpretation. Conversely, routine maintenance expenses (minor repairs, unclogging, painting) do not qualify as capital expenditures.

Rent increase after major work and the applicable percentage in 2026

This is the most important change in the reform. Before 2026, the percentage used to calculate the share of capital expenditures chargeable to the rent varied each year according to interest rates (4.7% in 2025, for example).

Since January 1, 2026, this percentage is now fixed at 5%, and the amortization period is 20 years. This brings the predictability that landlords had long been asking for.

In practical terms, if you spend $30,000 on eligible work in a building, the maximum annual amount recoverable across all affected tenants is $1,500 (5% of $30,000). This amount is then distributed proportionally among the units concerned according to their share of the building.

Comparison of the rules before and after 2026

This table summarizes the main differences between the old and the new method applicable to a rent increase after major work.

Item	Before January 1, 2026	As of January 1, 2026
Rate applicable to capital expenditures	Variable according to interest rates (4.7% in 2025)	Fixed at 5%
Base percentage	Complex calculation (13 indicators)	3-year CPI average (3.1% for 2026)
Amortization period	According to a variable scale	20 years
Schedule of eligible work	None	Built into the regulation
Applicable method	Notices given before January 1, 2026	Notices given as of January 1, 2026

Important: it is the date of the notice of lease modification that determines the applicable method, not the date of the work or the start date of the renewed lease.

How to correctly calculate the requested increase

The calculation combines several components. For a lease starting between April 2, 2026 and April 1, 2027, here is the logic:

1. Base percentage: 3.1% applied to the current monthly rent. This rate reflects the three-year average of the Québec CPI.
2. Major work: 5% of the eligible cost, divided by 12, then multiplied by the unit’s relative share of the building.
3. Municipal and school taxes: only the portion of the increase that exceeds the base percentage is taken into account.
4. Insurance premiums: same logic as for taxes.

Simplified example for illustration purposes. A 6-unit building with comparable rental values, current rent of $1,200, where the owner had the roof redone for $24,000:

• Base adjustment: $1,200 × 3.1% = $37.20/month
• Shared major work: ($24,000 × 5%) ÷ 12 months ÷ 6 units = $16.67/month
• New suggested monthly increase: about $53.87

This combined mechanism is the heart of calculating a rent increase after major work in Québec.

The TAL’s official calculator (in French) reproduces exactly the method used by administrative judges at a hearing. It is free and strongly recommended before sending a notice.

When the calculation becomes cumbersome to orchestrate every spring across several buildings, calling on a team specialized in property accounting and rent setting lets you present a complete file, ready to defend at a hearing if necessary.

Deadlines to respect to stay within the law

A perfectly calculated increase that is sent late will be invalid. The deadlines to know:

• Notice to the tenant: between 3 and 6 months before the end of the lease. For a lease ending on June 30, the notice must therefore be sent between January 1 and March 31.
• Tenant’s response: the tenant has one month after receipt to accept, refuse, or refuse while moving out. No response is deemed acceptance.
• Filing with the TAL: if the tenant refuses, the landlord has one month after that refusal to file an application for the fixing of rent. After that deadline, the lease is renewed under the same conditions.
• Financial information form: once the application has been filed with the TAL, the owner has 90 days to complete it.

The notice must be in writing, state the new conditions, indicate the tenant’s response options and include the deadlines. An incomplete notice may be declared invalid.

What to document to defend the increase before the TAL

A rent increase after major work only holds up before the TAL with an impeccable file. If the case goes to a hearing, it is up to the owner to prove that the increase is justified. Prepare:

• detailed invoices for the work, dated and paid;
• proof of payment (bank statements, cheques, transfers);
• comparative quotes when the cost might seem high;
• before/after photos;
• proof that the work falls within the definition of a capital expenditure;
• the allocation grid among the affected units.

A poorly assembled file can lead to partial or total rejection of the portion related to the work. Conversely, a clear and chronological presentation makes the decision easier.

Special cases to know

Several situations modify or block a rent increase after major work, and each deserves to be identified before sending the notice.

Buildings less than five years old (section F of the lease): if section F was checked on the lease, the owner can freely set the rent at renewal. The tenant cannot contest before the TAL and must either accept or leave.

Work resulting from past lack of maintenance: the TAL may refuse to include expenses that result from the owner’s failure to meet the maintenance obligation. Repairing a roof that should have been maintained for the past 10 years may be contested.

Government grants and assistance: since 2026, assistance received by the landlord for capital expenditures is taken into account and reduces the amount eligible for the calculation.

Long-standing tenant in place: there is no specific rule on length of occupancy, but a lack of maintenance over the last 12 months may lead to a reduction of the rent set.

A well-defended increase is part of a broader strategy: knowing your rights as a landlord before the TAL precisely avoids many procedural errors, and knowing how to make a rental property profitable in Québec lets you place each capital investment within a long-term return strategy.

Conclusion

A rent increase after major work in Québec now rests on a clearer framework, but it requires rigour in the calculations, the documentation and the respect of deadlines. An error on the notice or a poorly assembled file can cost a full year of recovery.

For owners who manage several buildings, or who want to avoid the pitfalls of a first application to the TAL, delegating this part to a specialized team often makes the difference between an accepted increase and a lease renewed under the same conditions.

Request a personalized quote for the management of your rental properties.

FAQ

What is the maximum allowed for a rent increase after major work in Québec in 2026?

There is no strict cap on the total increase, but the portion related to a rent increase after major work is calculated at 5% of the eligible cost per year, amortized over 20 years. This percentage is added to the base rate of 3.1% as well as to adjustments related to municipal and school taxes and insurance premiums.

Can the tenant refuse an increase due to major work?

Yes. The tenant has one month after receiving the notice to state their refusal in writing. If the refusal is expressed while asking for the lease to be renewed, the owner in turn has one month to file with the TAL, which will decide according to the criteria set out in the Regulation respecting the criteria for the fixing of rent. Without filing within that deadline, the lease is renewed under the same conditions.

What work is considered major according to the TAL?

The schedule to the regulation lists, among other things, redoing the roof and replacing the heating system, windows, exterior cladding or plumbing. Routine maintenance work, such as periodic painting or small repairs, does not fall within this definition. Since the list is not exhaustive, some particular cases may be decided by the Tribunal according to the nature of the expenses incurred.