Understanding the TAL: A Landlord’s Guide to 2026 Rent Increases and Regulations
- Feb 20
- 2 min read
Updated: 4 days ago
Navigating the Tribunal administratif du logement (TAL) has always been a challenge for Montreal property owners, but 2026 marks the most significant regulatory shift in over 40 years. With the introduction of Bill 31 and a brand-new rent calculation formula, the "old way" of managing leases is officially over.
At Marsik Management, we’ve audited the new 2026 guidelines to help our clients stay compliant while protecting their property’s valuation. Here is what every Montreal landlord needs to know right now.
1. The New 2026 Rent Increase Baseline: 3.1%
On January 1, 2026, the TAL retired its old methodology in favor of a simplified, inflation-linked formula.
The Magic Number: For leases renewing between April 2, 2026, and April 1, 2027, the TAL has set a baseline adjustment of 3.1%.
Why it changed: This new method uses a three-year moving average of the Consumer Price Index (CPI) to prevent the "inflationary spikes" we saw in 2024 and 2025.
Note: For leases renewing on or before April 1, 2026, the old baseline of 4.5% still applies.
2. The Fixed 5% Renovation Threshold
One of the biggest wins for landlords in 2026 is the clarification of Major Capital Expenditures.
The Old Way: Amortization rates for renovations were volatile and often discouraged building maintenance.
The New Way: Landlords can now apply a fixed 5% threshold for major repairs (roofs, windows, kitchens, heating systems). This provides a predictable 20-year path to recover your investment through legal rent adjustments.
3. Bill 31: The End of "Lease Transfer" Arbitrage
Bill 31 has fundamentally changed the power dynamics of Lease Transfers (Cession de bail) in Montreal.
The Change: Landlords now have the right to refuse a lease transfer for any reason. If you refuse a transfer, the lease is simply terminated, allowing you to regain control of the unit and select your own tenant.
The Impact: This effectively ends the practice of tenants "selling" their low rents to friends or strangers, ensuring that you can reset your building's tenancy standards legally.
4. Section G and Clause F: No Room for Error
Transparency is the TAL's top priority in 2026. Failure to accurately complete Section G of the lease (listing the lowest rent paid in the last 12 months) can result in a rent fixation case that could cost you thousands in retroactive repayments.
Clause F Protection: If your building was constructed or underwent a change of use within the last five years, you must explicitly state this in the lease to exempt the unit from rent fixation. In 2026, the TAL is strictly enforcing the documentation of these dates.
Why Professional Management is Non-Negotiable in 2026
The "DIY Landlord" era in Montreal is becoming a high-risk gamble. One clerical error in a Notice of Rent Increase or a missed deadline in Section G can freeze your property's cash flow for years.
As your boutique management partner, Marsik handles the entire TAL lifecycle:
Calculating tax and insurance adjustments beyond the 3.1% baseline.
Serving legal notices within the mandatory 3-6 month window.
Representing your interests in the event of a tenant refusal.
Don't leave your compliance to chance.
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