In Quebec, at the time of the renewal of the lease, a landlord is free to ask a rent increase that he deems just and reasonable in his notice that he remits to his tenant. The tenant has the right to accept or to refuse that increase within one month following the receipt of the landlord’s notice.
In order to help the parties in reaching an agreement on the rent increase, the Régie puts at their disposal a tool of calculation of the rent increase which is done by using the rules established in the Regulation respecting the criteria for fixing of rent that is in force at the Régie du logement. The landlord enters the data pertaining to his building, then submits the results to his tenant in order that both reach an agreement on the rent increase. Please refer to section Calculation for the Fixing of Rent.
In the case when both parties cannot reach an agreement on the rent increase (or on any modification of the lease), the landlord will have to file an Application to Modify the Lease at the Régie du logement, within the month following the answer of refusal by the tenant.
When that application will be filed, the Régie will remit to the landlord the form Necessary information regarding the fixing of rent. The landlord will have to enter in it the revenue and expenses of the building by taking into account the given dates. Later on, the Régie will send a notice of hearing to both parties and the landlord will have to have on hand all the necessary vouchers (invoices, bills, etc.).
Please note that there are important time limits to respect. Take a look at section Changing a Condition of the Lease.