- An income property is valued based on its net income (cap rate/NOI method), not residential comparables.
- The cap rate = NOI ÷ value. The higher it is, the better the relative return.
- The GRM = price ÷ gross rents. On the North Shore, it runs between 12 and 14× for plex properties.
- At sale, CCA recapture is taxed at 100% as ordinary income — distinct from capital gains (50% up to $250,000 for an individual).
- The median price for a plex (2-5 units) on the North Shore in 2026 was $763,500 with a selling time of approximately 25 to 41 days (APCIQ-Centris, April 2026).
What do you need to know to value a multiplex properly?
Unlike a house or condo sold to an owner-occupant, an income property is valued primarily based on its net operating income (NOI). Two indicators dominate the analysis:
The cap rate (capitalization rate)
The cap rate is the ratio between the annual NOI and the market value of the property. Its formula: cap rate = NOI ÷ value. A 5% cap rate on a property worth $800,000 means the annual NOI is $40,000. To learn more and calculate yours, check our cap rate calculator.
A higher cap rate (e.g., 5.5% vs 4%) indicates a better relative return — you're paying less per dollar of net income. It is not a sign of lower building quality, but often an advantage for the investor-buyer.
The GRM (gross rent multiplier)
The GRM is a quick estimation tool: GRM = sale price ÷ annual gross rents. On the North Shore, plex properties generally trade at 12 to 14 times gross rents depending on condition, location and size. To check if your property is well positioned, use our plex profitability calculator.
NOI (net operating income)
NOI is the difference between actual gross rents (less a normalized vacancy rate) and all operating expenses — property taxes, insurance, maintenance, management fees, snow removal — but before debt service. This is the figure on which the cap rate and financing are calculated.
Common mistake: using residential comparables to value a 5-unit plex. The result is almost always a miscalibrated price — either too low (you lose money) or too high (the buyer's financing falls through). The North Shore plex price map gives you benchmarks by area.
Key rules to know before selling an income property
The Rental Housing Tribunal (TAL)
The Rental Housing Tribunal (TAL) (formerly the Régie du logement, renamed in 2020) is the body that adjudicates all disputes between landlords and tenants in Quebec. In the context of a sale, the TAL is particularly important for:
- Owner-occupancy evictions or evictions for major renovations
- Rent increase notices or non-renewal of lease notices
- Leases in force that automatically transfer to the new owner
Every selling landlord must ensure that the required notices were sent within the prescribed deadlines, failing which the sale may be complicated or liability may arise.
Tax on sale: CCA recapture and capital gains
Selling an income property triggers two distinct types of taxation:
- CCA recapture (capital cost allowance): if you have claimed capital cost allowance deductions over the years, the tax authorities recapture them at 100% as ordinary income at the time of sale. This is an item that is often underestimated.
- Capital gains: the difference between the sale price and the adjusted cost base (after adjustments). For an individual, 50% of the gain is included in taxable income up to $250,000. Beyond that, the inclusion rate rises to two-thirds. For details on your situation, see our tax guide for selling an income property.
A tax professional must absolutely validate your situation before signing a purchase offer. The figures vary depending on your cost base, your CCA claims, your status (individual or corporation) and your province of residence.
How much is a plex worth on the North Shore in 2026?
According to data from APCIQ via the Centris system (April 2026 report), here are the price benchmarks for 2-to-5-unit buildings on the North Shore of Montreal:
| Property type | Indicative median price | Average selling time |
|---|---|---|
| Plex 2-5 units (all) | $763,500 | ~25-41 days |
| Small plex (2-3 units) | ~$640,000 | ~25-41 days |
| Plex 4-5 units | ~$820,000 | ~25-41 days |
The selling time of approximately one month (25 to 41 days) reflects an active market, where properties well valued by income find buyers quickly. To track prices by municipality and area, see our interactive North Shore plex price map.
These figures apply to properties listed on the market and properly valued using the income method. An overpriced property can significantly exceed this timeline, which often leads to successive price reductions.
Why sell to a direct buyer?
ImmoMulti is a direct buyer of multiplex properties on the North Shore — not a broker. Selling directly offers several concrete advantages:
- No brokerage commission: commissions are generally negotiated between 4% and 7% + taxes, often more than $40,000 on a median property. That money stays in your pocket.
- Written offer within 48 hours: you have a firm number quickly, without a prolonged listing process.
- Confidential transaction: no public showings, no Centris listing, no tenants informed at the exploration stage.
- As-is purchase: no renovations required, no financing conditions dragging things out.
Direct sale is particularly suited to owners who value speed, simplicity and confidentiality. To objectively compare all options, see our page broker vs direct buyer.
Methodology and quiz sources
All factual data used in this quiz comes from official or reference sources:
- Median prices and selling times: APCIQ (Association professionnelle des courtiers immobiliers du Québec) via the Centris system, April 2026 monthly report, 2-5-unit plex segment, North Shore of Montreal.
- Taxation: Income Tax Act (Canada), CCA recapture rules and capital gains inclusion rates in effect for the 2026 tax year.
- TAL: Tribunal administratif du logement, Government of Quebec.
- Valuation methods: standard recognized practices in income property appraisal (Ordre des évaluateurs agréés du Québec).
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