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.

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.