Québec landlord glossary

The words of the lease, the Tribunal administratif du logement and rental property tax, defined in one sentence, then explained.

C

Capital cost allowance (CCA): The tax deduction that spreads the cost of a rental building and its assets over several years, at a rate set for each class: 4% a year for most buildings.
Capitalization rate (cap rate): A building's net operating income divided by its price: the yearly return it would give if bought with cash, before the mortgage and income tax.
Comparative factor: The yearly multiplier that brings a municipal assessment up to market level: assessment × comparative factor = standardized value, used notably for the welcome tax.
Current vs capital expense: The tax distinction between spending that maintains or restores a property, deductible in the same year, and spending that acquires or improves it, written off through CCA.

Debt service coverage ratio (DSCR): A building's net operating income divided by its annual mortgage payments: below 1, the rents aren't enough to pay the mortgage.

Eviction: In Québec, a landlord ending a lease to subdivide a dwelling, enlarge it substantially or change its use (art. 1959 C.C.Q.); a moratorium bans it until June 6, 2027.

Gross rent multiplier (GRM): A building's price divided by its annual gross income: a quick ratio for comparing plexes, but one that ignores expenses entirely.

Lease assignment: A tenant's transfer of the lease to another person, who takes their place; since 2024, the landlord may refuse without a serious reason, but the lease then ends.
Lease renewal: The automatic renewal of a fixed-term lease when it ends, on the same terms and for the same length, unless a notice is given in time (art. 1941 C.C.Q.).
Lease termination (résiliation): The end of a lease before its term, ordered by the TAL or provided for by law, for example when a tenant is more than three weeks late paying the rent.

Mandatory TAL lease form: The Tribunal administratif du logement's lease form, mandatory since 1996 for every new residential lease in Québec; the current version took effect on January 1, 2026.

Net operating income (NOI): A building's effective income (rents minus vacancy) minus its operating expenses, before the mortgage, depreciation and income tax.
Notice of lease modification: The written notice in which a landlord proposes a rent increase or another change for the lease's renewal, within the deadlines set by the Civil Code (art. 1942 C.C.Q.).

Plex (duplex, triplex, multiplex): A small residential building with two or more units, typical of Québec: duplex (2), triplex (3), fourplex (4), and so on up to the multiplex.
Property assessment roll: The municipal register that sets each property's value for three years; it is the basis for property and school taxes and, with the comparative factor, for the welcome tax.

Rent fixing: The TAL's decision setting the rent of a renewed lease when the tenant refuses the increase, based on the criteria in the Regulation respecting the criteria for the fixing of rent.
Repossession of a dwelling: An owner's right to take back a rented dwelling to live in it or house a close relative, with notice given at least 6 months before the end of a lease longer than 6 months.
RL-31 slip (Relevé 31): The slip a landlord prepares for each dwelling rented on December 31, sent to Revenu Québec and given to the tenants no later than the last day of February.

Section F of the lease (new building): The part of the lease that, in a building built or converted to housing 5 years ago or less, rules out rent fixing by the TAL, provided it is properly filled in.
Section G: lowest rent paid: The notice to a new tenant, in section G of the lease, stating the lowest rent paid for the dwelling in the 12 months before the lease begins (art. 1896 C.C.Q.).
Security deposit: Money paid up front to secure a lease: in Québec, a landlord can't require any, key deposits included; only the first month's rent may be paid in advance.
Sublet: A tenant renting the dwelling to a subtenant with the landlord's consent; unlike an assignment, the tenant remains bound to the landlord throughout.

T776: The federal Statement of Real Estate Rentals, filed with your income tax return to report gross rents, expenses and net rental income.
TP-1086.R.23.12 (work on a property): Revenu Québec's form for costs incurred for work on an immovable, on which a landlord reports every contractor paid for work on a rental building.
TP-128: Revenu Québec's form for income and expenses from renting immovable property, completed for each building and attached to your Québec income tax return.
Tribunal administratif du logement (TAL): Québec's tribunal for disputes between residential landlords and tenants: rent fixing, repossession, eviction, unpaid rent and lease termination.

Undepreciated capital cost (UCC): The balance of a class of depreciable property still to be deducted: capital cost minus the CCA already claimed. Each year's CCA is calculated on this balance.

Welcome tax (land transfer duties): The duties a property buyer pays once to the municipality, calculated in brackets on the greater of the price and the assessed value multiplied by the comparative factor.