Rent Increase Calculation for 2025: What to Expect

Rent Increase Calculation for 2025: What to Expect

After record-breaking rates in 2023 and 2024, the average rent increase suggested by Quebec’s Administrative Housing Tribunal (TAL) for 2025 has reached a 30-year high. Here’s what you need to know.

Each year, the TAL provides a calculation tool that helps landlords determine rent adjustments for tenants based on building-related expenses, such as maintenance costs, municipal and school taxes, insurance premiums, and major renovations, among other factors.

Average Base Increase Estimates

The TAL has published the following average base rent increase estimates (excluding municipal tax increases):

   •   Non-heated apartments: 5.9%

   •   Electric-heated apartments: 5.5%

When municipal tax increases are factored in, the average rent increase rises to:

   •   Non-heated apartments: 6.5%

   •   Electric-heated apartments: 6.1%

If major renovation costs are added to municipal tax increases, the percentages climb to:

   •   Non-heated apartments: 8.5%

   •   Electric-heated apartments: 8.1%

How Much for a $1,000 Monthly Rent?

For a monthly rent of $1,000:

   •   Before municipal tax and renovation costs:

      •   A non-heated apartment could see a $59 increase.

      •   An electric-heated apartment could see a $55 increase.

   •   Including municipal taxes and renovation costs:

      •   The increases would rise to $85 and $81 per month, respectively.

Comparison with 2024

In 2024, the TAL suggested an average base increase of 4% for both non-heated and electric-heated apartments. The 2025 rates represent a 47.5% increase for non-heated apartments and a 37.5% increase for electric-heated apartments compared to last year.

Challenges for Tenants

Tenants may find it challenging to complete the TAL’s rent increase calculation form, as it requires detailed information they may not have access to, such as municipal tax data or specific building expenses.

Can Your Landlord Increase Rent Without Limits?

In Quebec, landlords are free to propose any rent increase they choose. Contrary to popular belief, there is no maximum percentage set by law.

However, tenants have the right to refuse a rent increase if they find it unreasonable or unjustified.

After submitting a written response—ideally via registered mail—the tenant can try to negotiate an agreement with the landlord. If no agreement is reached, the landlord can file an application with the TAL to have the rent set.

Exception for Newer Buildings

If the building is less than five years old and the “Clause F” box is checked on the lease, the landlord can impose any rent increase they want without needing to justify it.