Unreasonable rent increases in PSRs: your rights

Every year, many residents of private seniors’ residences (PSRs) receive a rent increase notice that seems unreasonable, especially when added to the already high costs of care in PSRs. Is this increase truly justified? Is there a legal limit? And above all, what are your recourses if you judge the hike to be unreasonable?

This guide demystifies your rights as a senior tenant and explains, step by step, how to refuse or contest an excessive rent increase.

In brief: A rent increase in a PSR is not automatically legal just because it has been announced. Most tenants have the right to refuse an increase while remaining in their dwelling. Warning! If your building was built less than 5 years ago, the owner may benefit from an exception provided for in Section F of your lease. In this particular case, if you refuse the requested increase, you could be forced to leave your dwelling at the end of the lease. It is therefore essential to check this section before taking action.

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What is an unreasonable rent increase in a PSR?

A rent increase is considered unreasonable when it significantly exceeds the real increase in the building’s operating costs (taxes, insurance, maintenance) and is not justified by documented expenses.

The context of recent years illustrates this problem well:

The TAL recommended a base adjustment rate of 5.9% for 2025, following a 4.8% increase in 2024.
Ontario caps its increases at 2.5% and New Brunswick at 3%, according to the housing ministries of these provinces.
The Consumer Price Index calculated by Statistics Canada for 2024 stood at 2.4%.

These gaps raise a legitimate question: why would PSR residents in Quebec face increases almost twice as high as those in neighbouring provinces? For many senior tenants on a fixed income, this gap quickly becomes unsustainable, especially when added to PSR care costs, which also increase every year.

Contact a CAAP advisor to analyze your situation

Your rights as a senior tenant facing a rent increase

Contrary to popular belief, a PSR owner cannot unilaterally impose a rent increase. The law provides for a specific process that protects senior tenants’ rights:

The owner must send a rent increase notice within the timeframes prescribed by law.
The tenant has the right to refuse this increase in writing within one month of receiving the notice.
If the tenant refuses, the owner must apply to the TAL to have the rent set; otherwise, the increase cannot be applied.
The TAL evaluates the increase based on the building’s actual expenses, not on an arbitrarily imposed percentage.

In other words, silence is not your ally. Not responding to the notice generally constitutes acceptance of the proposed increase.

Consult TAL documentation on rent setting

How to contest a rent increase deemed unreasonable

If you believe that the hike announced by your PSR is unreasonable, here are the steps to follow to refuse a rent increase:

Analyze the notice received: Check the sending date, the proposed percentage and, if applicable, the reasons given.
Compare with TAL criteria: Every year, the TAL publishes indicators to evaluate if an increase is reasonable based on the building’s actual expenses.
Refuse in writing: You have one month from receipt of the notice to notify the owner of your refusal.
Prepare your file: If the owner applies to the TAL, gather your previous leases and all relevant correspondence.
Get support: A CAAP advisor can help you build your file and, if necessary, prepare you for a hearing.

This process may seem intimidating, but remember that the burden of proof belongs to the owner. It is up to them to demonstrate that the increase is justified, not up to you to prove that it is not!

Find your regional CAAP for assistance

Recourses and resources to protect you

You do not have to face this situation alone. Several resources exist specifically to protect seniors facing rent increases in PSRs.

The CAAP in your region: Free support to understand your rights and prepare your file.
The residence life committee (RLC) of your residence: A preferred space to collectively discuss issues related to rent increases with your PSR management.
ACROQ: The association actively lobbies government authorities for stronger oversight of rent increases in PSRs, notably by demanding caps on increases similar to those in other Canadian provinces.

Grouping with other residents to form a united front is often one of the most effective strategies for making your concerns heard by your residence management.

Open letter from the President of ACROQ published in Le Soleil

This problem is not new. In March 2025, the President of ACROQ, Raoul Charbonneau, co‑signed an open letter to the Premier of Quebec. They denounced the excessive rent increases recommended by the TAL and demanded stricter oversight, similar to that in other Canadian provinces.

“An increase of 5.9% is unacceptable. It increases precarity and further weakens the most vulnerable households.” – Michel Ross and Raoul Charbonneau, President of ACROQ, free translation from “The government must intervene against excessive rent increases in 2025,” Le Soleil, March 11, 2025.

Read the article

What to remember about unreasonable rent increases in PSRs

A rent increase is not automatically legal. It must be justified by real expenses.
The tenant has the right to refuse an increase in writing within one month following the notice.
It is up to the owner to prove that the increase is reasonable before the TAL, not up to the tenant to prove otherwise.
The CAAP in your region can support you free of charge in your steps.

Frequently asked questions about rent increases in PSRs

Can a PSR increase rent without limit every year?
No. Although the TAL publishes reference rates, any increase must always be justified by the building’s actual expenses. A high reference rate does not automatically equal a legal increase for every residence.

What happens if I refuse the proposed rent increase?
The owner must then apply to the TAL within the provided timeframe to have the rent set by a decision‑maker. If the owner does not take this step, the increase will not be applied, and your rent will remain unchanged.

Can costs of care be included in the rent increase?
Since 2023, for the purposes of calculating or readjusting the rent of a dwelling located in a private seniors’ residence, a percentage applicable to service costs that relate to the person of the tenant, which will be determined according to the consumer price indicator for health care services established by Statistics Canada. In 2025, this percentage was about 6.7%.

How much time do I have to contest a rent increase?
You have one month from receipt of the rent increase notice to notify the owner in writing of your refusal.

Unreasonable rent increases in PSRs: how to protect your rights