Producing RL-31 Statement: A Owner’s Guide

Producing the RL-31 statement is a requirement from Revenu Québec that all owners or managers of rental properties must adhere to.

This process ensures compliance and transparency towards tenants.

Understanding the steps and best practices of this task allows for smooth navigation through fiscal and administrative complexities. Our guide offers a clear overview to master this essential process.

Download the Revenu Québec guide

Understanding the RL-31 Statement

If you are a property manager or owner of a rental property, you will need to fill out the RL-31 statement every year as part of your year-end tasks. This document informs Revenu Québec about the rental situation of a property as of December 31st of the relevant year.

You will need to detail the following information:

  • Unit number (unique)
  • Number of tenants
  • Complete address of the rented unit
  • Tenant’s details and address at the bottom of the form
  • Owner’s details and address at the bottom of the form

RL-31 for the Solidarity Tax Credit Application

Tenants use the RL-31 statement to apply for the solidarity tax credit when filing their income tax returns.

Production and Submission Period: December 1st to the last day of February

Technically, the production period for RL-31 statements begins on December 1st each year. However, RL-31 statements must be produced for any unit where rent was paid or payable by a tenant or subtenant on December 31st. That’s why our management software allows for RL-31 statement production in the first week of January.

You have until the last day of February to submit copy 1 of the RL-31 statement (RL-31) to Revenu Québec. Simultaneously, you must provide copy 2 (RL31.CS) to tenants, ensuring compliance and transparency.

Producing the RL-31 Statement: Our Practical Guide

You must produce one RL-31 statement per unit. If you manage 20 buildings with 12 units each, you will need to produce 240 RL-31 statements.

Here’s how to do it in 3 steps.

Step 1: Gathering Necessary Information

Before starting the production of the RL-31 statement, it is essential to gather all necessary information. This includes:

  • Preparer number and statement numbers: Provided by Revenu Québec. If you have produced RL-31 statements in previous years, you already have your preparer number. Unless there is a significant change in your property portfolio, you won’t need to request it every year.
  • Address of each unit: Ensure you have the complete address of each apartment (number, street, apartment).
  • Owner’s addresses: Record the owner’s addresses correctly (number, street, apartment).
  • Tenant’s addresses: You will need the complete address of each tenant (number, street, apartment).

Step 2: Fill out the RL-31 Statement Form

Correctly filling out the RL-31 statement is essential to ensure compliance with Revenu Québec’s requirements. Here are the steps to fill out this form:

  • The RL-31 statement consists of two copies: Copy 1 (RL-31), intended for Revenu Québec, and Copy 2 (RL-31.CS), reserved for tenants.
  • For Copy 1, indicate the year, the statement code (R for an original statement, A if modified, D if canceled), the number of people who signed the lease (box B), and the address of the unit (box C). Don’t forget to indicate your address and sign at the bottom of the statement.
  • For Copy 2, transfer the information from Copy 1 to the appropriate places, including tenant information at the bottom of the document before signing.

You can fill out the RL-31 statement in 3 ways:

  • Use le the online portal on the Revenu Québec website available from December 1st.
  • Use suitable software meeting Revenu Québec’s specifications. Note that you can outsource the preparation of your RL-31 statements, as well as your T4 and RL-1 statements, to Hopem.
  • Fill it out on paper if necessary.

Note that it is also possible to obtain the RL-31 statement by phone.

Step 3: Sending the RL-31 Statement to Revenu Québec

After carefully filling out the RL-31 statement, the next step is to send it to Revenu Québec. Here’s how to proceed:

Electronically:

  • For those producing more than 50 statements, sending must be done compulsorily online, either via an XML file using certified software or Revenu Québec’s online service.
  • If you produce fewer than 51 statements, sending can be done either online or by mail.

Paper submission:

  • For paper submission, send your statements to the mailing address of Revenu Québec.
  • Ensure you keep a copy of the statements for your records.

You must provide copy 2 of the statement (RL-31.CS) to each tenant and subtenant whose name and address are on copy 1 that you produced for the unit. You can hand them to them in person or send them by mail. Note that to transmit them electronically, you must have obtained their consent beforehand.

Statements must be sent to Revenu Québec and given to tenants no later than the last day of February. Penalties will be applied for delays.

FAQ

The RL-31 statement must be produced by any owner (individual or partnership) of a property that has rented a unit, provided that rent was paid or due on December 31st of the relevant year.

The RL-31 statement informs Revenu Québec about the occupancy of units in Quebec, essential for the solidarity tax credit and fiscal transparency for tenants. It is also used by tenants wishing to apply for the solidarity tax credit.

An RL-31 statement is required for any dwelling in Quebec (houses, apartments, rooms, etc.) if:

  • Rent was paid or payable on December 31st of the relevant year.
  • The unit is not subsidized or at a low rent (e.g., social housing or units under a program of the Société d’habitation du Québec).
  • It is not in a hospital, a long-term care facility, a rehabilitation center, or a center under the Act respecting health services and social services for Indigenous and Cree people.
  • It is not in a building providing intermediate or family resource services.
  • For rooms in a private residence (family home), a statement is necessary if more than two rooms are rented, or if the room has an external exit or independent sanitary facilities (bathroom).
  • It is not a room rented for less than 60 days in a hotel or rooming house.