Régie du logement
When a lease expires, it is renewed for the same term (duration) and under the same conditions, except for a lease having a term of more than 12 months, which is renewed for 12 months only. During the renewal process, the lessor (landlord) may modify the lease — for example, by increasing the rent or modifying another condition of the lease such as heating or parking. However, he or she must notify the lessee (tenant) within the prescribed time period. Renewal without noticeA lessee who does not receive a notice of modification and wishes to renew the lease with the same conditions does not have to notify the lessor. The lease will be renewed automatically. However, in the case of a full-time student who rents a dwelling from an educational institution, the student must notify the educational institution in writing that he or she wishes to renew the lease, at least one month before it ends. The postmark attests to compliance with the renewal deadline. Notice of modification of the lease A lessor who wishes to modify the conditions of the lease (for example, rent, heating, parking) must give the lessee written notice of the modifications that he or she wishes to make, within the prescribed time period. If the lease is signed by several co-lessees, the lessor must give each of them a notice of modification of the lease. A letter simply asking the lessee whether he or she wants to continue to live in the dwelling does not constitute a notice of modification, and the lessee is not obliged to answer the letter. Lessee’s reply to the notice of modification of the lease Upon receipt of the notice, the lessee has three choices:
If a lessee does not reply to the notice of modification of the lease within the prescribed time period, he or she is deemed to have accepted the proposed modifications and the lease is renewed under the conditions proposed by the lessor. A lessee who accepts the proposed modifications is not obliged to reply to the notice of modification of the lease. The lease will be renewed automatically. A lessee who refuses the proposed modifications must notify the lessor in writing within the prescribed time period. He or she does not have to vacate the dwelling. If the parties fail to reach an agreement and the lessor contests the lessee’s refusal, the lease is renewed and the dispute will be heard by the Régie du logement. If the lessor does not contest the lessee’s refusal within the prescribed time period, the lease is renewed without the proposed modifications. Lessor who contests a lessee’s refusal If the lessor wishes to contest a lessee’s refusal of the proposed modifications to the lease, he or she must file an application to modify the lease with the Régie. Lessors who file an application to modify a lease with regard to rent are no longer bound by the amount they requested in the notice of modification of the lease. If they specify an amount in their application, the judge cannot grant an increase exceeding this amount. However, if they do not specify an amount and ask the Régie to calculate the maximum authorized amount based on the rent-fixation criteria, the increase may exceed the amount requested in the notice of modification of the lease. The Régie determines the amount of rent payable based on the revenue and expenditures for the building applicable to the calendar year preceding the end of the lease, except for preferential rent (see Definitions). In the latter case, the rent may be set on the basis of the value of comparable dwellings. Non-renewal of the lease Regardless of whether or not the lessee has received a notice of modification of the lease, if the lessee does not wish to renew the lease, he or she must notify the lessor in writing within the prescribed time period. Calculation tool The Régie offers lessors and lessees a tool for calculating rent, taking into account changes in municipal and school taxes, insurance premiums, the building’s overall operating costs and, if applicable, major work. The form Calculation 2017: How to Agree on the Rent and accompanying publication, Example of How to Use the Form Calculation 2017, are available for this purpose.
Preferential rentPreferential rent is rent for a dwelling that is less than the amount usually charged for a comparable dwelling, where:
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