The 2026 Guide to the Montreal Rental Market: What Property Owners Need to Know
- Feb 20
- 3 min read
Updated: 4 days ago
The Montreal rental market has entered a new phase of maturity in 2026. After years of record-low vacancies and runaway rent growth, the market is beginning to stabilize, but with a catch: it is now more fragmented than ever.
For property owners, "business as usual" is no longer enough. To thrive this year, you need to understand the three pillars defining the 2026 landscape: Supply surges, the TAL’s new math, and the "Boutique" demand shift.storic plex, staying ahead of market trends is the first step to a profitable investment.
1. The Vacancy Reality: A Two-Speed Market
While the national headlines suggest a cooling market, Montreal’s reality is neighborhood-specific.
The Surge in Supply: Massive completions of purpose-built rentals in late 2025 have pushed the city-wide vacancy rate toward 3.1%—a significant jump from the 1.5% lows of previous years.
The Fragmented Truth: Luxury units in Griffintown and Downtown are seeing vacancies as high as 5-6%, forcing landlords to offer concessions. Meanwhile, affordable "plex" units in Verdun and Rosemont remain incredibly tight at 1.5%.
Marsik Insight: If you own a modern condo, your competition is at an all-time high. Strategic pricing and superior tenant service are now your primary tools for retention.
2. The 2026 TAL Overhaul: 3.1% is the New Baseline
The biggest administrative change this year is the Tribunal administratif du logement’s (TAL) new calculation method.
The New Formula: For leases renewing after April 2, 2026, the TAL has set a basic rent increase of 3.1%. This is a significant decrease from the 4.5% seen in 2025.
Capital Expenditures: The good news for investors is the clarified 5% threshold for major renovations. This provides a much clearer ROI path for owners looking to modernize older assets.
Marsik Insight: Don't just settle for the 3.1%. We help our owners factor in the recent 12.2% property tax assessment jump to ensure your net cash flow doesn't shrink.
3. Rent Trends: Where are the Gains?
Despite the cooling in some sectors, Montreal's average rent for a 1-bedroom unfurnished unit has stabilized around $1,615, while 3-bedroom "family" units are seeing a rebound.
Growth Leaders: Neighborhoods like Saint-Henri (+7.4%) and The Plateau (+5.3%) continue to show month-over-month resilience.
The "Cooling" Zones: Downtown and Ahuntsic-Cartierville have seen modest declines as inventory finally catches up with demand.
The WFH Effect: Larger 4 ½ and 5 ½ apartments are currently the most "recession-proof" assets in the city, as hybrid work remains a staple of the Montreal professional lifestyle.
4. The "Law 25" and "Bill 31" Legal Shield
2026 is the year of legal enforcement. Between Law 25’s strict privacy requirements for tenant screening and Bill 31’s new rules on lease transfers, landlords are under a microscope.
Lease Transfers: You now have the right to refuse a lease transfer without "serious reason," effectively ending the era of tenants "trading" low-rent leases.
Privacy: Asking for a tenant's Social Insurance Number (SIN) without following Law 25 protocols is now a major liability.
Strategy for 2026: From "Landlord" to "Asset Manager"
In a "Buyer’s Market" for tenants, the quality of your management is your greatest competitive advantage. Tenants in 2026 aren't just looking for four walls; they are looking for responsiveness, transparency, and building quality.
At Marsik Management, we specialize in navigating this new complexity. From maximizing TAL-allowed increases to Law 25-compliant screening, we ensure your Montreal asset remains a high-performer in a changing world.
Is your portfolio ready for the 2026 shift?
Comments