Landlords could cancel rental lease transfers under new Quebec bill

Tenant rights groups and landlord associations are criticizing the Coalition Avenir Québec (CAQ)'s newly tabled housing legislation.

Bill 31 proposes several changes to leases, including modifying eviction procedure and lease assignments, also known as lease transfers. It was tabled Friday as the National Assembly goes into recess for the summer and won't be debated until fall.

Quebec's minister responsible for housing says she knows the bill will be controversial, but she believes it covers major concerns for both tenants and landlords.

"Tenants aren't happy. Landlords aren't happy…. but I think it's quite balanced," Housing Minister France-Élaine Duranceau said.

Owners of new buildings can increase the rent as much as they want for the first five years. Now, landlords would have to disclose the maximum increase for those years in their leases.

It also restricts evictions by placing the burden of proof on landlords.Tenants who don't respond to an eviction notice will be assumed to have refused, and owners would then have to go to the housing tribunal and plead their case for eviction. Currently, a tenant who doesn't respond to an eviction notice is assumed to accept it.

WATCH | What are your rights as a tenant in Quebec?:

Required compensation for those evicted will also be higher, as landlords would be forced to pay them up to one month's rent per year of continuous residence in the dwelling.

The most controversial provision in the bill deals with lease assignments. Bill 31 would allow a landlord to reject any request for a lease transfer without specifying why — and then cancel the lease.

Tenant rights groups say it could exacerbate the housing crisis by allowing landlords to dramatically increase rent for a new renter, and it's become common for people to rely on lease transfers to limit rent hikes.

"Considering there is a spike in the rents, there is a lot of rent increase. This is one of the ways tenants can protect the affordability of the rent," said community organizer with the housing group Front d'action populaire en réaménagement urbain (FRAPRU) Catherine Lussier.

"By removing it, we're accepting that rents will go higher and higher."

Duranceau says it isn't up to tenants to control rent increases.

She says it infringes on landlords' property rights for tenants to "shop for bargains" on apartments as lease assignments were designed to let tenants out of a lease early.