On June 6, 2024, An Act to limit lessors’ right of eviction and to enhance the protection of senior lessees (PDF) (Bill 65), came into effect. Bill 65 imposes a three-year ban on evicting tenants from their homes for reasons related to subdivision, significant expansion, or changes in the property’s use. This ban aims to protect tenants and will only be lifted if the vacancy rate for rental housing in urban areas of Quebec with over 10,000 residents reaches 3%. Additionally, eviction protections are strengthened for lessees aged 65 and older whose income does not exceed 125% of the eligible income for affordable housing.

For real estate brokers, this new legislation has significant implications for the multi-residential brokerage market. The eviction restrictions could limit opportunities for property development, particularly regarding conversions or major renovations of residential properties. The increased protection for senior tenants could enhance the stability of elderly tenants, making residential properties less flexible for investors looking to repurpose or change the use of buildings. Brokers will need to pay close attention to new obligations regarding communication and documentation of leases in order to comply with the strengthened legal requirements.

This legislation seeks to strike a balance between the needs of tenants and property owners, but it is essential for brokers to stay informed and adaptable in order to navigate this new regulatory landscape.

See this article from the OACIQ for Legislative amendments.

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