Rent increases in 2026: What every landlord needs to know

Since January 1, 2026, the Administrative Housing Tribunal (TAL) has changed its method for calculating rent increases. This new system simplifies certain rules while introducing important changes that every landlord of rental properties must understand in order to manage their properties effectively.

The new calculation method explained

The TAL now bases its calculations primarily on the average inflation rate of the last three years. For 2026, the recommended rate is 3.1%. This percentage represents the base increase applicable to rents, before the addition of any eligible expenses. This simplification aims to offer greater predictability for both landlords and tenants. However, it does not mean that all properties must automatically see their rent increase by 3.1%. This rate is a benchmark, not a requirement.

Eligible expenses

Beyond the base rate, certain expenses may justify an additional increase. The main categories include major renovations to the building or dwelling, increases in municipal and school taxes, increases in insurance premiums, and significant cost changes resulting from the implementation of a new service or accessory. Each expense must be documented and justified. Invoices must be kept and presented in case of dispute. The TAL provides calculation tools to determine the impact of these expenses on the permitted increase.

The augmentation process

The rent increase notice must be sent to the tenant within the prescribed timeframe, generally three to six months before the end of the lease, depending on its duration. This notice must clearly state the proposed new rent and any changes to the lease terms. The tenant has one month from receipt of the notice to respond. They can accept the increase, refuse it while agreeing to renew the lease, or refuse the increase and vacate the property. If the tenant refuses the increase but remains in the property, the landlord can apply to the TAL (Tax Assessment Agency) to have the rent set. It is at this point that the new rent calculation schedule comes fully into effect.

Specific features to consider

Certain situations require special attention. Different rules may apply to newly constructed properties or those that have not been rented for five years. Buildings that have undergone major renovations involving the temporary eviction of tenants are also subject to specific provisions. Lease assignment is another important aspect. The new tenant inherits the terms of the existing lease, including the current rent. The landlord cannot use an assignment as an opportunity to increase the rent beyond what would normally be permitted.

The importance of compliance

Failure to comply with the TAL regulations can have significant consequences. An unauthorized rent increase can be successfully challenged by the tenant, obligating the landlord to reimburse any overpayments. In some cases, additional penalties may apply. Meticulous documentation of all expenses, communications with tenants, and completed work provides the landlord with the best protection in the event of a dispute.

Strategies for homeowners

A proactive approach allows you to manage rent increases effectively and compliantly. Maintain a detailed record of all building-related expenses throughout the year. Plan your renovations with a view to their impact on future rent increases. Communicate clearly with your tenants about the reasons for proposed increases. For owners of multiple buildings or those who lack the time to keep up with regulatory changes, entrusting management to professionals ensures compliance while maximizing revenue ethically and legally.

The new 2026 rent increase rules aim to balance the interests of landlords and tenants in a changing economic environment. A thorough understanding of these rules, combined with rigorous and transparent management, allows landlords to maintain the profitability of their investments while complying with their legal obligations.