Rent Increases
Prince Edward Island has a system of rent control that generally does not allow for an increase beyond a set percentage each year. If your landlord wants to increase your rent beyond the allowable amount, they must apply to the Rental Office for approval.
The allowable rent increase is decided each year by the Island Regulatory and Appeals Commission, also known as IRAC. This decision is based on several factors including vacancy rates, the economic outlook for the province, changes to the Consumer Price Index and submissions from landlords and tenants.
Each year, tenants and landlords are invited to give their opinion on what the allowable percentage should be for the coming year. Check out the Rental Office website for more information.
Rent Increases within the Allowable Amount
Your landlord is only allowed to increase your rent once per year. For example, if your landlord increases your rent in January of 2020, they can’t increase your rent again until January of 2021. This increase must be within the allowable percentage.
In 2020, landlords on PEI can increase rent by 1.3% for all rental units.
Your landlord must communicate the increase with you using the proper form: Form 10 – Notice of Increase in Rent of Residential Premises. They must give you at least three months’ notice of the increase.
See Challenging a Rent Increase for more information.
Rent Increases beyond the Allowable Amount
If your landlord wants to increase the rent beyond the allowable amount, they must apply to the Director of Residential Rental Property. Your landlord must give you notice of their intention to apply for a rent increase beyond the allowable amount. They must serve you with a Form 10 – Notice of Increase in Rent of Residential Premises.
Your landlord must apply to the Director using Form 12 - Application by Lessor for Approval of Rent Increase Exceeding Percentage Allowed by Regulation. They must file this form within ten days of giving you the Form 10. Your landlord must also serve you the Form 12.
Once your landlord files Form 12 at the Rental Office, a hearing will be scheduled. The Director can approve the complete rent increase, approve part of the rent increase or deny the rent increase.
See Challenging a Rent Increase for more information.
Unlawful Rent Increases
If your landlord increases your rent beyond the allowable amount and does not apply to the Rental’s Office for the increase, or if they do not follow the rules about allowable increases, the rent increase is considered unlawful.
Your landlord can’t increase the rent when a new tenant moves in, unless they follow the rules around allowable increases, or they have made the appropriate application to the Rental’s Office.
See Challenging a Rent Increase for more information.
Forms you may need:
Form 10 – Notice of Increase in Rent of Residential Premises