Lease renewal: everything you need to know

Have you received a lease renewal notice and have some questions? Browse this article to discover the highlights of this process governed by law. From the modification of certain conditions to the increase in rent, we tell you everything!

What is lease renewal?

In Quebec, lease renewal – or renewal of the lease – is done automatically under the same conditions when it expires. As a general rule, it is renewed for the same duration, with the exception of leases of more than 12 months.

The owner can, however, make certain changes to the rent, heating or parking, for example. In this case, he must send a notice of rent increase and modification of another condition of the lease to each of the tenants.

Lease renewal: deadline for sending the notice

The deadline to be respected varies depending on the type of lease and its duration. For leases of 12 months or more, this is 3 to 6 months, while for those of less than 12 months, we are talking about 1 to 2 months. Visit the websiteAdministrative Housing Tribunal to find out more.

What should a lease renewal notice contain?

The notice must indicate the proposed modifications to the renewal of the lease of accommodation including the rent, duration and services offered. It must also mention the tenant's response time which is one month from the date of receipt.

The tenant can react in three ways:

Accept the lease renewal and its modifications;
Do not renew the lease and leave the accommodation at the end of the agreement;
Refuse the changes, but renew the lease.
Thus, a tenant who refuses a modification or increase in rent is not required to vacate the premises. In this case, the housing lease will be renewed with a point in dispute and the two parties will have to reach an agreement or make a request to the Administrative Housing Tribunal.

A tenant who does not respond to the renewal notice is deemed to accept it. If he refuses a condition or if he wishes to leave the apartment, he must inform the owner using the completed formTenant's response to notice of rent increase and modification of another condition of the lease or a notice of non-renewal of lease< /a>.

There is no fixed rate for the increase in rent. The owner must, however, respect the foundations of the Civil Code of Quebec which take into account operating expenses:

• Property and school taxes;
• Insurance premiums;
• Costs for electricity and heating;
• Maintenance expenses;
• Service and management fees.

Major repairs and improvements – such as changing the roof, doors and windows – can also impact rent increases.

Are you thinking of leaving your home? Make sure you find a new apartment before notifying your landlord. Better to do things in the right order!

Souce: centris.ca