Lease Assignment and Loi 31: What Changes for the Plex Landlord in Québec

ImmoMulti — direct buyer of income properties on the North Shore — tracks the legal framework that affects plex landlords. One of the most structural changes of recent years went almost unnoticed: since Loi 31 (Bill 31) came into force on February 21, 2024, the landlord can now refuse a lease assignment without giving a serious reason. Before, this was impossible. This reversal changes the balance between landlord and tenant, touches on rent control, and has concrete consequences when it comes time to sell an income property. Here, backed by official sources, is what every plex landlord should understand.

Lease assignment or sublet: what is the difference for the landlord?

In a lease assignment, the tenant transfers the entire lease to another person and is no longer responsible for the lease. In a sublet, the tenant keeps the lease, remains responsible to the landlord, and can take back the dwelling when the sublet ends. A sublet is generally temporary; an assignment is a permanent transfer.

The two mechanisms are often confused, but their effects are opposite for a plex landlord. According to Éducaloi, in a lease assignment the tenant is "no longer responsible for the lease": the assignee becomes the new tenant and takes over all rights and obligations until the end of the term. In a sublet, by contrast, the tenant "remains responsible for the lease" to you and takes the dwelling back when the sublet ends.

This distinction is not theoretical. With an assignment, you inherit a permanent new occupant you did not choose. With a sublet, your counterpart remains the original tenant. That is precisely why the legislator treated these two situations differently in Loi 31.

Before Loi 31, could the landlord refuse a lease assignment?

Before February 21, 2024, lease assignment was subject to the same rule as subletting: the landlord could only refuse if they had a serious reason. The absence of a serious reason did not allow them to block the assignment. In practice, a tenant could transfer the dwelling — and therefore the rent — to the person of their choice, and the landlord had to accept unless they could show, for example, the candidate's inability to pay or bad behaviour.

This regime made lease assignment a powerful tool in tenants' hands. In a tight market, chains of successive assignments could keep the same rent for years, from one occupant to the next, without the landlord being able to readjust the price beyond what the Tribunal administratif du logement (TAL) allows.

What exactly did Loi 31 change for lease assignment?

Since February 21, 2024, the landlord can refuse a lease assignment without a serious reason. If they refuse without a serious reason, the lease is terminated on the assignment date stated in the notice: the tenant is released from their obligations and can leave, but the candidate they proposed cannot take the dwelling. Assignment remains possible if the landlord accepts it.

Loi 31 ("An Act to amend various legislative provisions with respect to housing"), assented to on February 21, 2024, gives the landlord latitude over lease assignment, "which remains possible: a landlord is always free to accept it," according to the Government of Québec. In other words, the landlord no longer needs a serious reason to refuse.

The consequence of a refusal is defined. According to Éducaloi, if the landlord refuses without a serious reason, "the lease is terminated on the assignment date" stated in the notice. The tenant "is released from their obligations" and can leave the dwelling on that date — but the person to whom they wanted to assign the lease cannot take the dwelling. The dwelling therefore becomes available again for you, the landlord.

Loi 31 also provides that "a tenant cannot make a lease assignment or a sublet for profit": they cannot claim a sum from the assignee for the transfer beyond what the law permits.

How is lease assignment linked to the cap on rent increases?

In recent years, lease assignment had become one of the few tools allowing a tenant to protect the next occupant from a significant increase. By assigning the lease under the same conditions, the tenant transferred their rent — often below market — to the person of their choice. As La Presse noted, lease assignment was seen as a rent-control measure exercised by tenants themselves.

By allowing the landlord to refuse the assignment (the lease then ending), Loi 31 restores the landlord's ability to re-rent the dwelling at the price they choose, within the TAL's rules. This change is in the same spirit as the new rent-transparency obligations: the lease must indicate the lowest rent paid in the past 12 months (the "section G" clause), as explained in our piece on the new TAL rent-increase calculation method for 2026.

How does a lease assignment actually unfold?

The procedure is formal and the deadlines matter. Here are the key steps you need to know as a plex landlord:

• Written notice from the tenant: they must send you an assignment notice stating the name and address of the interested person and the date on which they want to assign the lease.
• 15-day window: you have 15 days from receiving the notice to respond.
• Silence = acceptance: if you do not respond within 15 days, it is as if you had accepted the assignment.
• Refusal: without a serious reason, the lease is terminated on the assignment date; the candidate does not take the dwelling.
• Reasonable expenses: you may claim reimbursement of reasonable expenses incurred because of the assignment.

Sources: Éducaloi — Transfer of lease and subletting; Tribunal administratif du logement — Assignment of lease or subletting.

What is the impact of Loi 31 when you sell your North Shore plex?

A plex with rents well below market is worth less than a building whose rents reflect their value. By allowing a landlord to refuse a lease assignment, Loi 31 gives better control over how rents evolve between two tenants, which can support the building's resale value. Each case should be confirmed with a notary or legal advisor.

For an income-property buyer, the value of a plex on the North Shore rests largely on its rental income. A building whose rents have been frozen low through successive assignments generates a lower net operating income — and therefore sells at a lower price. Conversely, the ability to readjust the rent when a dwelling becomes vacant naturally improves the building's income potential.

This does not mean decisions should be rushed. Loi 31 creates no new right to recover an occupied dwelling: it only frames the refusal of an assignment requested by the tenant. If you are assessing the value of your income property, the real state of your rents relative to the market is a central factor — far more than the mechanics of the assignment itself.

To go further, see our analysis of when a plex becomes unprofitable in Québec and the case for a direct sale.

What exactly do the Civil Code articles say about lease assignment?

To grasp the reach of Loi 31, you have to go back to the text of the law. Lease assignment and subletting are governed by a handful of articles of the Civil Code of Québec, and that is where the nuances that make all the difference for a plex landlord are found. Understanding these articles helps you avoid a procedural mistake that would make your refusal invalid.

Article 1870: the tenant's right to assign and the duty to notify

Article 1870 of the Civil Code sets the baseline: the tenant may sublet the dwelling or assign the lease. In return, they must notify you of their intention, indicate the name and address of the person to whom they intend to assign the lease, and obtain your consent. That last word matters: assignment is never automatic. It requires a formal request and a response from you. A tenant who simply "installs" a new occupant without written notice does not complete a valid assignment under the law.

Article 1871: the 15-day window and silence that means yes

Article 1871 sets the deadline mechanics. It provides that the landlord cannot refuse without a serious reason and must state the grounds for refusal within 15 days of receiving the notice; failing that, they are deemed to have consented. This 15-day window and the silence-equals-acceptance rule remain the backbone of the procedure. For subletting, the serious-reason rule remains fully in force. For lease assignment, this is where Loi 31 grafts on its change.

What Loi 31 added: refusal without a reason that ends the lease

Since February 21, 2024, for a lease assignment, the landlord can refuse without a serious reason. The consequence is spelled out by the law and confirmed by Éducaloi: if the landlord refuses without a serious reason, the lease is terminated on the assignment date indicated in the notice, as Éducaloi explains. The tenant is released and can leave on the date they chose, but the candidate they presented does not take the dwelling.

Article 1872: the reasonable expenses you may claim

Article 1872 provides that the tenant must reimburse the landlord for the reasonable expenses that may result from the sublet or the assignment. In practice these costs are modest: credit check of the candidate, preparation of documents. You cannot turn this provision into punitive "assignment fees"; the law also prohibits any assignment or sublet "for profit."

Article 1873: the release of the former tenant

Article 1873 confirms a point that is often misunderstood: a lease assignment releases the former tenant from their obligations. In other words, once the assignment is accepted, your former tenant is no longer responsible — it is the assignee who answers for the lease. This is the exact opposite of a sublet, where the original tenant remains your debtor. That difference explains why, before Loi 31, assignment was so prized: it let the tenant step entirely out of the picture while "bequeathing" their rent.

Sources: Civil Code of Québec, arts. 1870–1873 — Légis Québec; Éducaloi — Transfer of lease and subletting.

How do you respond to a lease-assignment notice, step by step?

When you receive an assignment notice, record the date, check that the notice is complete, decide whether to accept or refuse, then respond in writing within 15 days. A refusal without a reason terminates the lease on the assignment date; no response counts as acceptance. Keep proof of your response.

Lease assignment turns on procedural detail. A late response, a misread notice, or a decision made verbally can cost you control of the situation. Here is the sequence, in order, for a plex landlord on the North Shore.

Step 1 — Date and check the notice you received

As soon as you receive the notice, record the date of receipt: it triggers the 15-day countdown. Then check that the notice contains the three elements required by article 1870: the candidate's name and address and the desired assignment date. An incomplete or verbal notice does not satisfy the law; you can ask the tenant to fix it. The Tribunal administratif du logement provides an assignment-notice form and a response form.

Step 2 — Decide: accept or refuse

You have two paths. Accept the assignment: the candidate becomes your new tenant, under the same conditions and rent, and the former tenant is released (art. 1873). Refuse the assignment: since Loi 31 you no longer need a serious reason, but the refusal terminates the lease on the assignment date — the dwelling becomes available and you can re-rent it at the rent you consider fair, within the TAL's rules.

Step 3 — Respond in writing within 15 days

This is the step never to skip. Whether you accept or refuse, respond in writing and make sure your response reaches the tenant within the 15-day window. Remember the rule: if you do not respond within 15 days, it is as if you had said yes. Send your response by a means that leaves a trace (registered mail, time-stamped email, hand delivery with acknowledgement).

Step 4 — Handle what follows based on your decision

If you accepted, have the assignee sign the documents, update your records, and check the section-G clause (the lowest rent of the past 12 months) for the new lease. If you refused, the lease ends on the assignment date: plan the handover, the inspection, and the re-rental. Note that a refusal is not an eviction: you cannot force a departure before the date the tenant set.

In concrete terms, how much can lease assignment cost a plex's value?

The theory becomes far clearer with numbers. An income property sells largely according to its net operating income (NOI) and its capitalization rate (cap rate, or TGA). The formula is simple: Value ≈ NOI ÷ cap rate. Every dollar of rent lost or frozen shows up, amplified, in the building's value. Let's look at three typical scenarios on the North Shore.

Example 1 — A triplex with one rent frozen below market

Picture a triplex in Saint-Eustache. Two units are rented at market ($1,350 each), but the third, passed on through successive assignments for years, rents for $850 while the market would be $1,350. That is a shortfall of $500/month, or $6,000/year. At a 5% cap rate, this single under-market rent cuts the building's value by roughly $6,000 ÷ 0.05 = $120,000. A rent gap that looks trivial on a monthly cheque becomes a six-figure hole in the sale price.

Example 2 — The effect of a refused assignment before listing

Take that same triplex. The tenant of the $850 unit sends an assignment notice. Since Loi 31 you can refuse without a reason: the lease is terminated on the assignment date, the unit becomes available, and you re-rent it at $1,350. The additional NOI of $6,000/year lifts the value by roughly $120,000 at the same 5% cap rate. In a context where the unit would otherwise have stayed frozen for another five or ten years through a new assignment, the difference is major at sale time.

Illustrative example for educational purposes. Rents, cap rate and values vary by area, building condition and market. Confirm any valuation with a chartered appraiser.

Example 3 — The gross rent multiplier (GRM) on a quadruplex

Many plex buyers also reason with the gross rent multiplier (GRM): Value ≈ annual gross income × GRM. Take a quadruplex in Blainville with a market GRM of 14. If two of its four units are under-priced by $400/month each because of assignments, the gross-income shortfall reaches $800/month × 12 = $9,600/year. At a GRM of 14, that is about $9,600 × 14 = $134,400 of value left on the table. The ability, since Loi 31, to realign these rents when tenants assign their lease gives the landlord a concrete lever over that value.

These examples are not return promises: they illustrate a mechanism. What matters is the principle: on an income property, the gap between the actual rent and the market rent is multiplied in the price. To estimate this potential on your own building, review our piece on when a plex becomes unprofitable.

What are the most common landlord mistakes with a lease assignment?

Loi 31 strengthened the landlord's position, but it does not forgive procedural mistakes. Here are the errors that come up most often — the ones that can turn a legitimate refusal into an imposed assignment or a dispute before the TAL.

1. Missing the 15-day window

This is the costliest mistake. A landlord who "forgets" to respond, or responds on the 16th day, is deemed to have consented to the assignment. The candidate then becomes the new tenant, under the same conditions, and you cannot go back. Treat every assignment notice as a firm deadline.

2. Confusing assignment and sublet

The two mechanisms follow different rules. For a sublet, you still need a serious reason to refuse; Loi 31 changed nothing there. Refusing a sublet "without a reason," as you would for an assignment, exposes you to a challenge. Read the notice carefully to know which one it is.

3. Responding verbally

A verbal response leaves no trace. In a dispute, it is your word against the tenant's. Always respond in writing, with proof of sending and receipt.

4. Believing a refusal allows immediate eviction

Refusing an assignment ends the lease on the assignment date chosen by the tenant, not before. It is neither a repossession nor an eviction. You cannot change the locks or force an early departure.

5. Claiming abusive "assignment fees"

You can recover reasonable expenses (credit check, documents), but the law prohibits any assignment "for profit." Charging a large flat fee is illegal and can backfire.

6. Refusing an Airbnb sublet without documenting the reason

If a tenant wants to sublet for short-term tourist accommodation, you generally have a serious reason to refuse — but you still have to state it clearly and in writing within 15 days. A poorly reasoned refusal can be challenged.

7. Neglecting section G at re-rental

When a unit becomes available after a refused assignment, the new lease must indicate the lowest rent of the past 12 months (section G). Omitting this or entering a false statement exposes you to punitive damages before the TAL.

8. Deciding alone in a complex case

Death of the tenant, roommates, undivided co-ownership, a building being sold: some situations warrant legal advice. A misreading can cost far more than a consultation with a notary.

Special cases: Airbnb, occupant without a lease, and the tenant's death

The "standard" lease assignment is clear since Loi 31. But the reality of a plex throws up situations that go beyond the simple case. Here are the most common ones, with the reflex to adopt.

The assignment disguised as an Airbnb sublet

Some tenants try to sublet their dwelling for short-term tourist accommodation. Beyond the assignment question, Airbnb-style accommodation is heavily regulated in Québec and often prohibited under a residential lease without authorization. A tenant cannot turn your dwelling into a tourist rental through a sublet: you generally have a serious reason to refuse. State it clearly, in writing, within 15 days, and refer to the TAL's rules on subletting.

The occupant without a lease

Sometimes a person occupies a dwelling without holding the lease: a spouse, an unregistered roommate, a relative. A lease assignment presupposes an ongoing lease and a titular tenant transferring their rights. If there is no written lease, or if the occupant is not on the lease, the assignment mechanism does not apply the same way. These cases require a case-by-case analysis: do not assume a mere occupant can "assign" anything.

The tenant's death

On the death of the tenant, the lease is not spontaneously "assigned" to an heir: specific rules apply to continuing or terminating the lease by the estate or by a person who lived with the deceased. These situations fall under provisions distinct from lease assignment. A succession liquidator managing a plex should confirm these rules with a notary — as noted in our piece on the decision to sell an unprofitable plex.

An assignment during a sale

If you are selling your plex and an assignment notice arrives, do not ignore it: the 15-day window still runs, and an assignment accepted by default (silence) changes the picture of the leases you transfer to the buyer. Inform your buyer or notary, and respond on time. A direct buyer like ImmoMulti factors in the real state of the leases when making an offer.

Section G and rent transparency: the other side of Loi 31

Loi 31 is not limited to lease assignment. It also tightened rent transparency, a component that directly affects the landlord every time a dwelling changes tenant — notably after a refused assignment. Understanding this side avoids costly mistakes at re-rental.

What section G is

Section G of the lease requires the landlord to disclose to the new tenant the lowest rent paid in the 12 months before the lease begins (or the rent set by the TAL during that period). This obligation lets the tenant know whether they are paying more than the previous occupant and, if so, ask the Tribunal to set their rent.

What Loi 31 tightened since February 21, 2024

According to CORPIQ and the Government of Québec, for any lease concluded as of February 21, 2024, a false statement or an intentional omission in section G can entitle the tenant to punitive damages, in addition to giving them longer deadlines to request a rent fixing. Transparency is therefore no longer optional.

Why this side matters for assignment

The link is direct. When you refuse an assignment, the dwelling becomes available and you re-rent it. But section G requires you to disclose the lowest rent of the past 12 months — that is, often, the very frozen rent the assignment maintained. Realigning the rent to market remains possible, but the new tenant knows the reference and can challenge an increase they consider abusive before the TAL. In other words, Loi 31 gives you control through assignment while framing re-rental through transparency. The two sides form a coherent whole.

To prepare a re-rental and estimate a compliant increase, see our piece on the new TAL rent-increase calculation method for 2026.

Sources: CORPIQ — Loi 31 memo, sections F and G of the lease; Government of Québec — More clarity on rent.

How do you prepare the sale of a plex marked by lease assignments?

To sell at the best price a plex whose history includes assignments, document the real state of the leases and rents, identify below-market units, and present the realignment potential. An income-property buyer pays for real income and potential; a clear, honest rental file supports your price.

A plex whose rents have been frozen by successive assignments sells, as-is, for less than a building with aligned rents. But that does not mean you should give it away. The key is to document and present the situation properly.

1. Take a real inventory of your leases

Gather all current leases, start dates, current rent, the history of assignments and sublets, and the estimated market rent for each unit. This rental file is the first document any serious buyer — or any direct buyer — will examine.

2. Quantify the gap with the market

For each below-market unit, calculate the monthly and annual shortfall, then its effect on value through the cap rate or GRM (see our examples above). This gap is not only a loss: it is also a value potential some buyers are willing to pay for, especially now that Loi 31 makes realignment easier when tenants assign.

3. Decide on your horizon

Realigning rents takes time: you have to wait for a unit to become vacant naturally, for a tenant to assign their lease (which you can refuse), or negotiate a departure. If you have neither the time nor the appetite to manage this process, a direct sale to a buyer who prices in that potential can be more profitable than a long optimization.

4. Compare "sell as-is" and "optimize then sell"

Optimizing can raise the price, but involves months of management, TAL-dispute risk, and costs. Selling as-is to a direct buyer is faster and commission-free. The right choice depends on your situation, your risk tolerance, and your horizon.

Informational content only. The rules on lease assignment and Loi 31 may change. Always confirm your situation with Éducaloi, the Tribunal administratif du logement, a notary, or a legal advisor.