Rental Property ROI Calculator for Quebec

Property details

Purchase price

Down payment

Mortgage rate

Amortization period

yrs

Income and expenses

Expected monthly rent

Annual property taxes

Annual insurance

Include property management fee

Tax settings Sources: CRA T776, T4002, T4037

Your marginal tax rate

Verify at Canada.ca — Tax rates and income brackets for individuals

Building value (% of purchase price)

Land is not depreciable. Check your municipal assessment.

Claim CCA depreciation

Class 1 at 4% declining balance. Half-year rule applies in year 1.

Multi-year projection

Hold period

yrs

Annual rent increase

Annual appreciation

Year 1 results (pre-tax)

Monthly mortgage payment

Monthly cash flow

Annual cash flow

Cap rate

Cash-on-cash return

Year 1 results (after tax)

After-tax monthly cash flow

After-tax annual cash flow

After-tax cash-on-cash return

Income tax on rental income

CCA deduction year 1

Analysis

Multi-year projection

Year	Property value	Annual rent	Interest	CCA	Tax	Pre-tax CF	After-tax CF	Cumulative CF	Mortgage bal.

Sale analysis at end of hold period

Projected sale price-

Capital gain-

Capital gains tax (50% inclusion)-

CCA recapture tax-

Total tax on sale-

Equity at sale-

Net equity after sale tax-

Cumulative after-tax cash flow-

Total return after tax-

Results are estimates for planning and educational purposes only, not financial or tax advice. Tax formulas sourced from CRA T776, T4002 and T4037. Vacancy, maintenance and closing costs not included. Consult a qualified Canadian accountant before making investment decisions.

Investing in Quebec rental property

Welcome Tax (Droits de mutation) Applies

Quebec charges a Welcome Tax on all real estate purchases, calculated on a sliding scale based on the greater of the purchase price or the municipal assessment value. Each municipality sets its own rate within the provincial framework. Budget for the Welcome Tax as part of your total acquisition cost and confirm the specific amount with your notary before closing.

Rent regulation Applies

The Tribunal administratif du logement (TAL) issues annual rent increase guidelines based on a formula accounting for municipal taxes, insurance, maintenance and financing costs. Landlords can propose increases and tenants have the right to contest them before the TAL. Between tenancies, new rents are generally unrestricted though some rules apply. Verify current guidelines at tal.gouv.qc.ca.

Legislation and disputes

Quebec's landlord-tenant law is distinct from all other provinces, governed by the Civil Code of Quebec. The Tribunal administratif du logement (TAL) at tal.gouv.qc.ca handles all residential tenancy matters. Leases for residential dwellings must be in French. Quebec landlords are strongly advised to consult a notary and the TAL's resources before renting any property.

Common questions about Quebec rental property

What is the Welcome Tax in Quebec and how much does it cost?

The Welcome Tax (Droits de mutation immobiliere) is a property transfer tax charged by Quebec municipalities on all real estate purchases. It is calculated on a sliding scale based on the higher of the purchase price or the municipal assessment, with rates increasing at higher value thresholds. Your notary will calculate the exact amount payable for your property before you close.

How does rent regulation work in Quebec?

The Tribunal administratif du logement (TAL) issues annual rent increase guidelines. Landlords can propose rent increases and must notify tenants in advance. Tenants can accept, negotiate or contest the proposed increase. If contested, the TAL determines the allowable amount. Between tenancies, new rents are generally unrestricted.

Is Montreal a good rental property investment?

Montreal has been one of Canada's most active rental markets, with relatively affordable prices compared to Toronto and Vancouver and strong rental demand. Cap rates in Montreal are generally moderate. The distinct legal framework, strong tenant protections and mandatory French-language leases require more preparation than investing in other provinces.

What makes Quebec's landlord-tenant law different from other provinces?

Quebec's landlord-tenant law is governed by the Civil Code of Quebec rather than a separate residential tenancies act. The TAL is the specialized court for all residential tenancy matters. Leases must be in French and tenants have strong rights including the right to maintain their tenancy. Quebec landlords benefit significantly from working with professionals who understand Quebec property law.

Analyze any Quebec property

Return to the main calculator for the full experience or explore our guides for Canadian real estate investors.

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This page is for informational purposes only and does not constitute financial, tax or legal advice. Quebec's Civil Code creates a distinct legal framework. Rules, rates and legislation vary and change. Consult a Quebec notary and qualified accountant before making investment decisions.