Bill 31 in Quebec: Impacts and Obligations for Landlords

What Is Bill 31?

Passed in Quebec in 2024, Bill 31 introduces significant updates to rental law, affecting both landlords and tenants. Its goal? To modernize housing regulations, curb abusive practices, and better balance the rights and responsibilities of both parties.

The Quebec government introduced Bill 31 to:

• Simplify rental property management for landlords
• Regulate lease transfers and subletting to prevent abuse 
• Strengthen tenant rights regarding evictions and housing conditions
• Expand municipal powers to support the development of affordable housing

Who Is Affected by Bill 31?

This law impacts all stakeholders in the rental market, including:

• Landlords, who must adapt to new rules on lease transfers, evictions, and housing standards
• Tenants, who gain new protections but face tighter restrictions on subletting and lease transfers 
• The Tribunal administratif du logement (TAL), which now has broader authority and enhanced powers
• Municipalities, which gain new tools to regulate real estate development

The bill 31 marks a turning point for Quebec’s rental market. For landlords and property managers, understanding these new rules is essential to ensure compliance and avoid disputes.

Leasing and Lease Management

Bill 31 introduces several key changes to lease management, aiming to give landlords more control while limiting practices deemed abusive by the government.

Lease Transfers: What’s Changing for Landlords?

Previously, tenants could transfer their lease to another person, often without the landlord’s ability to refuse.

What’s changing under Bill 31:

• Landlords may refuse a lease transfer without a serious reason, provided they release the tenant from their obligations. If they want the tenant to remain bound to the lease, they must justify the refusal as before.
• Tenants can no longer demand financial compensation in exchange for transferring a lease.
• Response deadlines remain unchanged: landlords have 15 days to respond to a lease transfer request, after which it is automatically approved.

Subletting: Stricter Oversight to Prevent Abuse

Subletting allows a tenant to temporarily rent their unit to someone else. However, this practice has often been misused for profit—especially through short-term rental platforms like Airbnb.

What’s changing under Bill 31:

• Tenants are strictly prohibited from subletting at a higher rent than they themselves pay.
• Sublets longer than 12 months now require explicit approval from the landlord.

These new rules prevent tenants from exploiting the rental market for speculative purposes and give landlords more transparency over how their properties are used. In cases of illegal subletting, landlords can now act more quickly to enforce the rules.

Lease Clauses: New Mandatory Information

Bill 31 also introduces changes to the mandatory information that must be included in leases—particularly Clauses G and F, which directly affect rent transparency.

Clause G: Rent History Transparency

• Landlords must now indicate the lowest rent paid in the past 12 months on the lease.
• This measure aims to prevent unjustified rent hikes and allows tenants to challenge increases.
• A landlord who intentionally omits this information may face penalties from the Tribunal administratif du logement (TAL).

Note: This requirement does not apply to units built, rented, or occupied within the last five years—unless a previous lease has already been signed for the same unit. (Source : TAL)

Clause F: Regulation of New Buildings

• In buildings less than 5 years old, the lease must specify the maximum rent expected over the next five years.
• This rule helps tenants anticipate rent increases and avoid unexpected hikes.

These new requirements demand greater administrative diligence but aim to make the rental market more transparent.

Eviction and Repossession: What’s Changing for Landlords

This reform also redefines the rules around eviction and repossession to strengthen tenant protections while adding new obligations for landlords.

Quick clarification:

• ​​​Eviction: used when a landlord wants to reclaim the unit to carry out major renovations, such as demolition, transformation, or expansion of the building.
• Repossession: applies when the landlord wants to reclaim the unit to live in it themselves or house a close family member.

Mandatory Compensation for Evicted Tenants

Under Bill 31, landlords who evict a tenant for repossession or major renovations requiring vacancy must now provide mandatory compensation.

For eviction notices sent on or after February 21, 2024, compensation is based on the tenant’s length of occupancy:

• 3 years or less: compensation equal to 3 months’ rent
• More than 3 years: compensation equal to 1 month per year of uninterrupted tenancy, up to a maximum of 24 months

In addition, landlords must cover reasonable moving expenses.

In addition, landlords must cover reasonable moving expenses. Extra protections apply to tenants who are: 65 years or older, have lived in the unit for at least 10 years or have an income at or below 125% of the eligibility threshold for low-income housing

This measure aims to curb abusive evictions and give tenants time and resources to find new housing in a tight rental market.

(Source : Éducaloi)

Burden of Proof Now on the Landlord

Before Bill 31, tenants often had to prove that an eviction was unjustified or fraudulent.

Now, the burden has shifted:

• Landlords must prove that the eviction is legitimate and complies with the law
• Evidence of the project’s execution (e.g., renovation plans, family member occupancy) may be required
• Penalties may apply if the eviction is found to be abusive or fraudulent

Housing Safety and Habitability: Increased Landlord Responsibilities

Landlords now have greater responsibility for maintaining safe and habitable housing. They must ensure their buildings meet habitability standards, including: heating, ventilation, pest control or general maintenance

If a unit is deemed unfit for habitation due to landlord negligence, tenants may now claim punitive damages in addition to regular compensation.

Changes to Legal and Administrative Procedures

Bill 31 also updates procedures before the Tribunal administratif du logement (TAL) to offer more flexibility. Landlords and tenants may now be represented by a person of their choice, under certain conditions

The TAL’s jurisdiction has increased from $85,000 to $100,000, allowing it to handle higher-value disputes and reduce the need for civil court proceedings

How Can Landlords Adapt to Bill 31?

With so many changes introduced by Bill 31, landlords must adjust their rental management practices to remain compliant and avoid legal issues.

Here are some best practices:

• Understand your new obligations: Learn the updated rules on lease transfers, subletting, evictions, and lease documentation
• Plan for eviction and renovation costs: Budget for tenant compensation and carefully plan renovation projects
• Ensure lease compliance: Verify that all required information (Clauses G and F, etc.) is correctly included to avoid disputes
• Maintain safe and healthy housing: Respond quickly to complaints and ensure rigorous property maintenance
• Consult rental law experts: When in doubt, seek advice from a lawyer or property management professional to avoid costly mistakes
• Stay informed: Keep up with legal updates and TAL decisions to anticipate future changes and adjust accordingly

By adapting now, landlords can minimize the risk of disputes and ensure effective, compliant property management.