Regulation

Automatic Lease Renewal vs Non-Renewal: A Plex Owner's Rights and Obligations

Tenant notice, lease and calendar illustrating automatic lease renewal and deadlines in Quebec

In Quebec, a residential lease almost never simply "ends" on its own. At expiry, it is automatically renewed — the principle of tacit renewal written into the Civil Code. For a plex owner, understanding this mechanism is no legal footnote: it decides whether you can adjust a rent, when you must send your notices, and in which rare cases you can actually refuse to renew a lease. This guide clarifies lease renewal and non-renewal, the exact deadlines, and your rights as a multi-unit owner — without the jargon.

3 to 6 mo.Notice window before the end of a 12-month-plus lease
1 monthTenant's window to refuse a rent increase
0Cases where an owner can refuse renewal "at will"

What is automatic (tacit) lease renewal in Quebec?

Tacit renewal is the principle whereby a fixed-term lease is automatically extended on the same terms at expiry, unless a valid notice ends it or modifies its terms. The tenant signs nothing: the right to maintain occupancy belongs to them.

Contrary to a widespread belief, a Quebec residential lease does not lapse because its expiry date has passed. The Civil Code of Quebec provides that at the end of a fixed-term lease, it is renewed by operation of law on the same terms, for an equivalent length not exceeding twelve months. This is tacit renewal: no one signs a new document, and the lease simply keeps living.

The heart of Quebec's logic is the tenant's right to maintain occupancy. As long as the tenant meets their obligations, they may stay in the dwelling for as long as they wish. The landlord holds no mirror-image right to "take back their property" at expiry. For a plex or multi-unit owner on the North Shore, this changes everything: your relationship with a tenant is not a contract you can decline to renew as you please.

The one thing you can do at expiry is propose to modify the terms — most often the rent — through a formal notice. And even then, the tenant keeps the right to contest.

Source: Administrative Housing Tribunal — The renewal of a lease and the modification of its conditions; Civil Code of Quebec, art. 1941-1942.

How does the lease modification notice work, and what are the deadlines?

The modification notice lets a landlord change a term of the lease (rent, length) at renewal. It must be written and delivered within a strict window: 3 to 6 months before the end for a lease of 12 months or more, 1 to 2 months for a shorter or indeterminate lease.

Lease modification notice with a rent increase calculated using the Administrative Housing Tribunal method in Quebec
A written modification notice, delivered on time, is your only lever at renewal.

If you want to raise the rent or change another term (for example, turning a 12-month lease into a shorter one), you must send the tenant a modification notice. This notice must be in writing and respect strict deadlines set by article 1942 of the Civil Code. Outside these windows, the notice is invalid and the lease renews unchanged.

Lease typeDeadline for the modification noticeEffect if no notice
Lease of 12 months or more3 to 6 months before the lease endsRenewed on the same terms, same rent
Lease of less than 12 months1 to 2 months before the lease endsRenewed on the same terms
Indeterminate-term lease1 to 2 months before the intended changeNo change without a valid notice

The notice must clearly state the proposed new term. For a rent increase, you must specify the new amount (or the increase in dollars or percent) and the date it would take effect. The calculation follows the Administrative Housing Tribunal's method, which we break down in our guide to the new 2026 rent calculation method.

A late notice = rent frozen for a year

If you miss the window to send the modification notice, the lease renews automatically on the same terms, same rent. You lose, for that whole cycle, the ability to raise the rent. On a multi-unit plex, a few oversights piling up year after year can seriously erode your net income.

What can the tenant do about a modification notice?

On receiving a rent-increase notice, the tenant has one month to respond. They may accept, refuse and stay, or leave. If they refuse and stay, it is the landlord who must apply to the Administrative Housing Tribunal within the month to have the rent fixed. Without a response within the month, the tenant is deemed to have accepted.

The modification notice is not a unilateral decision: it is a proposal. The tenant who receives it has one month to react, and three options are open to them:

  • Accept the modification (or say nothing within the month, which counts as acceptance): the lease renews on the new terms.
  • Refuse the increase but stay: the tenant notifies the landlord in writing within the month. The lease then renews, but on the old terms until the rent is fixed.
  • Leave the dwelling at the end of the lease: the tenant gives notice that they are not renewing and moves out at expiry.

The crucial point for the landlord: if the tenant refuses the increase but stays, it is not up to them to leave or to back down. It is up to the landlord to apply to the Administrative Housing Tribunal, within the month following the refusal, to have the rent fixed. If the landlord fails to do so within that window, the lease renews at the unchanged rent. Many plex owners overlook this reversal of burden and let their right lapse.

ImmoMulti rent-increase calculatorEstimate the allowable increase before sending your modification notice

In which cases can a landlord end the lease instead of renewing it?

A landlord can only end a lease in cases set out by law: repossession for themselves or an eligible relative, eviction for subdivision/enlargement/change of use, or termination for a serious reason (non-payment of rent, serious prejudice). Outside these cases, the lease must be renewed.

Civil Code of Quebec open beside a plex lease illustrating the cases where a landlord can end a lease
Ending a lease: a limited set of grounds, framed by the Civil Code.

Because renewal is the rule, ending a lease is the exception. A landlord can only achieve it in specific situations, each with its own notices and deadlines:

  • Repossession: the landlord (a natural person) may take back a dwelling to live in it themselves or to house an eligible relative — spouse, child, parent, or another relative of whom they are the main support. The deadlines and conditions are detailed in our guide to setting rent on a first lease and Section F, where lease mechanics are set out for owners.
  • Eviction for major work: subdividing the dwelling, substantially enlarging it, or changing its use. Eviction is regulated and entitles the tenant to compensation.
  • Termination for a serious reason: non-payment of rent (often three weeks in arrears), repeated late payments, serious prejudice to the building or other occupants. Termination goes through an application to the Administrative Housing Tribunal.

What is not a valid ground: wanting a higher market rent, preferring a "better" tenant, or simply wishing to reclaim the dwelling for no reason recognized by law. Attempting to evict a tenant under a false pretext of repossession exposes the landlord to penalties and damages. Note too that lease assignment lets the tenant transfer their lease — a separate mechanism we cover in lease assignment and Law 31.

Source: Éducaloi — The renewal of a lease; Administrative Housing Tribunal — Repossession of a dwelling and eviction.

The renewal timeline, step by step

For a typical 12-month lease ending on June 30 (the most common date in Quebec), here is the sequence to follow on the landlord's side:

  1. 6 months before the end (earliest) — You may begin sending your written modification notice with the proposed increase.
  2. 3 months before the end (latest) — Final deadline to deliver the notice. After it, the lease renews at the unchanged rent.
  3. 1 month after the notice — The tenant responds: accept, refuse and stay, or leave. Silence counts as acceptance.
  4. 1 month after a refusal — If the tenant refuses the increase but stays, you have one month to apply to the Administrative Housing Tribunal to have the rent fixed.
  5. Renewal — The new lease takes effect at expiry, on the terms accepted or fixed by the Tribunal.

The plex owner's good habits

  • Always give notice in writing, with proof of receipt
  • Respect the 3-to-6-month window for a 12-month-plus lease
  • Watch the one-month window to apply to the Tribunal after a refusal
  • Document every renewal and every increase applied

What are the common mistakes around lease renewal?

The same missteps recur among multi-unit owners, and they cost dearly in lost income or disputes:

  • Believing the lease "ends" at expiry: no, it renews. Sending no notice never frees up the dwelling.
  • Giving a verbal notice or an unconfirmed text: without writing and proof of receipt, the notice is fragile and easily set aside by the Tribunal.
  • Missing the one-month window to apply to the Tribunal after a refusal: the rent then stays frozen for the year.
  • Confusing repossession with a simple non-renewal: you cannot just "not renew"; you must invoke a specific legal ground, with its own notices.
  • Letting rents fall behind renewal after renewal: this is the mistake that weighs most on a plex's resale value.

That last point deserves attention if you are thinking of selling. A plex is valued first on its income: leases renewed with below-market rents reduce net operating income and therefore your building's value. A record of rigorous renewals, with increases applied on time, directly supports the price.

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Frequently Asked Questions

Tacit (automatic) renewal is the mechanism in the Civil Code of Quebec whereby a fixed-term lease is automatically extended on the same terms at expiry, unless a valid notice ends it or modifies its terms. The tenant signs nothing: if they stay and no compliant notice was given, the lease is deemed renewed. It is the tenant who holds the right to maintain occupancy.

No, not freely. The tenant enjoys the right to maintain occupancy. A landlord cannot simply decide not to renew a lease. The lease can only be ended in specific cases: repossession for the landlord or an eligible relative, eviction for subdivision, enlargement or change of use, or termination for a serious reason (non-payment, prejudice). Outside these cases, the lease renews.

For a lease of twelve months or more, the modification notice (rent increase, change of term) must be sent between three and six months before the lease ends. For a lease of less than twelve months, the deadline is one to two months before expiry. For an indeterminate-term lease, it is also one to two months. These deadlines are set out in the Civil Code of Quebec (art. 1942) and explained by the Administrative Housing Tribunal.

If no modification notice is sent within the deadline, the lease is automatically renewed on the same terms, same rent, for an equivalent length (up to twelve months). The landlord loses, for that cycle, the ability to raise the rent or change a clause. A simple oversight thus locks in your terms for another year — hence the importance of respecting the notice window.

No. On receiving a notice with an increase, the tenant has one month to respond. If they refuse but want to stay, they must notify the landlord in writing within that month: the lease renews, but it is up to the landlord to apply to the Administrative Housing Tribunal within the month following the refusal to have the rent fixed. If the tenant does not respond within the month, they are deemed to have accepted the modification.

No. For a fixed-term lease of twelve months or more, a tenant who wants to leave at expiry must send a non-renewal notice between three and six months before the lease ends. Otherwise, the lease renews and they remain bound for a new term. Many tenants are unaware of this rule and end up committed for another year for want of timely notice.

Yes, indirectly. A plex sells first on its income. Leases renewed with rents lagging the market, because modification notices weren't sent on time year after year, reduce net operating income and therefore the building's economic value. Documenting rigorous renewals and increases applied on time directly supports the price you can obtain.

No. The modification notice, like a repossession or eviction notice, must be in writing and delivered in a way that proves receipt (hand delivery with acknowledgment, registered mail, or any method that leaves a record). A simple verbal exchange or an unconfirmed text exposes the landlord to having the notice contested and set aside by the Administrative Housing Tribunal.

No, there is no automatic increase. The rent of a renewed lease stays the same unless the landlord has sent a valid modification notice within the deadline. Any increase requires a separate notice, calculated using the Administrative Housing Tribunal's method, and the tenant keeps the right to contest it. Renewal on its own never changes the rent amount.

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