Rent Increases 2026: A New Method, But Much Debate Still to Come
Montreal, January 19, 2026 — The Quebec Landlords Association (APQ) is reacting to the publication by the Administrative Housing Tribunal (TAL) regarding the effects of the new calculation method on 2026 rent increases.
A New Method That Doesn't Favor Landlords
With the average CPI at 3.1%, the base rent will increase by 3.1% per month, but this figure is not the one to consider: the variation in taxes and insurance, as well as major renovations carried out in 2025, must also be taken into account.
“Contrary to what is being said, this new method does not enrich landlords in any way.” “A 5% rate for major renovations equates to only a $4.17 increase per $1,000 invested, but it doesn’t take into account the fact that a landlord has to pay interest on the loan,” notes Martin Messier, president of the APQ.
The simplified calculation, now limited to a few categories of expenses, will certainly make things easier for landlords, both in performing the calculations and in explaining them to tenants. However, this step often remains the heart of the tensions leading to refusals of rent increases.
More and more refusals
Year after year, a growing number of tenants refuse the proposed increase without even discussing it with their landlord. This trend is reflected in the surge in rent adjustment cases:
Rent Adjustments and Reviews
2022-2023: 14,440
2023-2024: 21,238 (+47.08%)
2024-2025: 22,494 (+5.91%)
The APQ hopes that the new method will be accompanied by a cultural shift in communication between landlords and tenants:
“Landlords: Don’t rely on general rates. Calculate the exact increase applicable to each unit. Tenants: Take the time to review the notice you receive, ask your questions, and open a dialogue,” the APQ added.
Changes to Note That Will Have an Impact
- Now, four criteria will be used to calculate the rent increase.
No more searching for electricity bills, maintenance bills, etc. Now, only tax, insurance, and repair bills need to be considered. Although simplified, the method still incorporates tax and insurance variations exceeding the CPI over three years. The APQ would have preferred these elements to be removed entirely.
- A fixed 5% depreciation rate
The uniform 5% rate corresponds to a 20-year payback period. However, this period often exceeds the actual lifespan of many pieces of equipment and does not take into account the interest payable by the owner on financing.
Depending on the nature of the work, a 10- to 12-year depreciation period would be more realistic. Owners need to know these parameters to make informed investment decisions.
This new method is a step in the right direction, but more changes would have been needed to support rental property investments.
APQ Rent Setting Clinic 2026: Here to Help You
As every year, the APQ will hold its Rent Setting Clinic, offering:
• Free online or in-person training (10 a.m. to 4 p.m.)
• Open lines for legal advice
• Personalized assistance with calculations
Join us on Saturday, January 24 — a must-attend event to properly prepare your rent increase notices.
Founded in 1984, the Quebec Landlords Association (APQ) is the largest association offering services to landlords of rental properties. It has been serving landlords in all regions of Quebec for over 40 years. In addition to offering a unique tenant assessment service in Quebec, it provides services to both owners of duplexes and triplexes, as well as property managers.
www.apq.org