Service — Negotiated rent increase
Cash for raise: increase a tenant's rent, by mutual agreement, in Quebec
Is your dwelling rented below market? Cash for raise means negotiating a rent increase that your tenant accepts voluntarily, in exchange for compensation. You durably reset your income — without conflict, in compliance with the TAL.
How much is your increase worth?
An accepted rent increase: see what it creates for you.
* Indicative estimate — annual rent gap capitalized at a 5 % cap rate (× 20).
The basics
What is cash for raise?
Cash for raise — literally "paying for an increase" — is a mutually agreed arrangement between a landlord and their tenant: the tenant voluntarily accepts a new, higher rent in exchange for a negotiated consideration. It's the go-to tool to reset a below-priced dwelling to market without having to wait through years of minimal annual increases.
The logic is simple. In Quebec, a great many dwellings end up, over time, below market rent: the tenant has been in place for a long time, the annual increases have been modest, and the gap widens year after year. That undervalued rent penalizes your net income and, above all, drags down the value of your building. Cash for raise corrects this gap in one move, with the tenant's consent.
Unlike an imposed increase, the approach is mutually beneficial: the tenant receives concrete compensation (a sum, work done, a smooth transition) and you secure a reset income for the years ahead. No one is forced; everything rests on consent.
The framework
Is it allowed in Quebec?
Yes — provided you clearly distinguish two things. On one side, there's the annual increase you propose at lease renewal: that one is governed by the rent-setting method of Québec's rental board (the TAL), and a tenant who considers it too high can contest it. On the other side, there's the voluntary agreement: nothing prevents a tenant from freely consenting to a rent higher than the guideline would impose. That's exactly where cash for raise comes in.
In other words, the TAL governs what you can impose; it does not prohibit a tenant from accepting more if it works out in their favour. The key is that the agreement be clear, written, signed, and free of coercion. The tenant must understand what they are accepting, the consideration they receive, and remain entirely free to refuse.
This is the framework we follow to the letter: no pressure, no threat of repossession, no aggressive tactics. A transparent proposal, a good-faith negotiation, a documented agreement. This page is provided for informational purposes and does not constitute legal advice; we encourage you to have your documents reviewed by your advisor.
The leverage effect
Why a rent increase creates so much value
A rent increase doesn't just raise your monthly income: it multiplies the value of your building. It's the most underestimated effect of rental optimization.
The value of an income property is calculated from its net income, capitalized according to the market's cap rate (TGA). The formula is direct: a rent increase of $X/month creates roughly X × 12 × (1 / cap rate) in value. At a 5 % cap rate, that comes down to multiplying the annual increase by 20.
Take an illustrative example. You reset a rent by +$400/month:
+$400
The reset rent, every month, under an agreement accepted by the tenant.
$4,800
$400 × 12 months. That's the additional, recurring income, year after year.
≈ $96,000
$4,800 × 20. The value added to your building — enough to transform a refinance or a resale.
A single reset dwelling can therefore be worth tens of thousands of dollars in building value. Multiply by the number of below-market doors in your portfolio, and the scale of the leverage becomes obvious. That's why a negotiation lasting a few weeks can have a far greater impact than years of cautious management.
The method
How we negotiate your increase
A structured process, led by experienced negotiators, designed to maximize your chances of an agreement while preserving the relationship with your tenant.
Free audit and identification of below-market dwellings
We analyze your portfolio door by door: current rent, market rent, gap, value-creation potential. You know exactly which dwellings are worth resetting — and which to leave alone. This step is free and with no commitment.
Strategy and calibration of the offer
For each targeted dwelling, we set the reset rent to aim for and the consideration to offer: a lump sum, work done, a gradual transition. The offer is calibrated to be attractive to the tenant while remaining clearly profitable for you.
Approach and negotiation with the tenant
We open the dialogue tactfully, present the proposal as a win-win agreement, and address objections. The negotiation is conducted in good faith, at a respectful pace, without pressure or threat of repossession.
Written agreement and setup
Once the deal is reached, we put the agreement in writing — new rent, consideration, dates — and incorporate it cleanly into the lease documents, ready to be signed by both parties.
Results, and billing based on results
Your income is reset, the value of your building rises. We are compensated only if the agreement goes through: no result, no invoice.
What's included
A turnkey service, paid only for results
You delegate the most delicate part — the conversation with the tenant — to people who handle it every day.
Optimization audit
Mapping of your rents against the market, calculation of the gap and the potential value created for each door. Free and with no commitment.
Full handling
We lead the approach, the exchanges, and the negotiation with your tenant, from the first conversation through to the signed agreement.
Agreement in order
Drafting and formatting of the written agreement, incorporated into the lease documents, ready for signature — in compliance with the TAL framework.
- No upfront fees — the audit is free and you pay only if an agreement is reached and your income actually increases.
- Strictly voluntary agreements — the tenant remains free to refuse at any time; no coercion, no threats.
- Compliance with the TAL framework — we clearly distinguish the governed increase from the mutually agreed, consented arrangement.
- An approach that preserves the landlord-tenant relationship — the proposal is presented as a win-win agreement, never as an ultimatum.
- Transparent calculation of the value created — you see, backed by figures, what each reset adds to your building.
- Experienced negotiators — you don't have to manage, yourself, a conversation that makes you uncomfortable.
Real-world cases
What a cash for raise looks like
Illustrative examples to show the mechanics. The amounts are fictional and do not constitute a guarantee of results.
Frequently asked questions
Everything landlords ask us
How much can rent be increased with cash for raise?
There is no fixed percentage. The TAL's annual guideline governs the increase you can impose, but a tenant can voluntarily consent to a higher increase by mutual agreement. The realistic margin depends on the gap between the current rent and the market rent: the further below market your dwelling is, the greater the room to negotiate. The free audit quantifies this potential for each of your doors.
Can the tenant refuse?
Yes, at any time. Cash for raise rests on a voluntary agreement: the tenant is under no obligation to accept. If they refuse, they keep their lease on the current terms and nothing changes. It's precisely because the agreement is mutually beneficial that most tenants follow through.
What is the difference with the TAL's annual increase?
The annual increase is the one you propose at renewal, governed by the TAL's rent-setting method and contestable by the tenant. Cash for raise is a separate, mutually agreed arrangement in which the tenant voluntarily accepts a new rent in exchange for a consideration. The two are not mutually exclusive and both respect the TAL framework.
What compensation is offered to the tenant?
The consideration is specific to each situation: a lump sum, improvements to the dwelling, months at the old rent before the increase, a transitional discount, or a combination. The goal is for the tenant to gain a concrete benefit while you durably reset your income.
Can rent be increased between two tenants?
Yes. When a dwelling becomes vacant, it's the ideal moment to reposition it at market before re-renting. In Quebec, the rent-setting clause (section G of the lease) must state the lowest rent paid over the past twelve months; we help you document everything and set an asking rent consistent with the market.
How long does a negotiation take?
It varies with the file and the tenant's availability. Some agreements come together in a few days, others take a few weeks of back-and-forth. We move at a respectful pace that protects the landlord-tenant relationship.
Do I pay even if no agreement is reached?
No. Our model is pay-only-for-results: the optimization audit is free and you pay only if an agreement is signed and your income actually increases. No result, no invoice.
Is the agreement valid and enforceable?
The agreement is put in writing, signed by both parties, and incorporated into the lease documents. It formalizes the new rent and the agreed consideration. We recommend having any document reviewed by your advisor; this page does not constitute legal advice.
Does it work for all types of buildings?
Cash for raise applies to plexes, income properties, and rental units whose rent is meaningfully below market. The larger the gap between the rent paid and the market rent, the more potential the approach has. The free audit lets you confirm whether your building is a good candidate.
Do I risk losing my tenant?
The approach is designed to preserve the relationship: the proposal is presented as a win-win agreement, never as pressure. The tenant remains free to refuse and keep their current lease. A move-out is never forced; if it happens voluntarily, it then opens the door to a market reset — which is what our cash for keys service covers.
Is your dwelling rented below market?
Discover, backed by figures, how much a cash for raise could add to your income and to the value of your building. The audit is free, and you pay only if it works.
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The content of this page is provided for informational purposes and does not constitute legal advice. The amounts shown are illustrative examples and guarantee no results. Any agreement must be reached voluntarily, in compliance with Québec's rental board (the TAL).