Above-Guideline Rent Increases: Tenant Rights in PEI

Keeping rental homes affordable is important to many Prince Edward Island (PEI) tenants. While rent increases are normally limited by annual guideline rates, sometimes landlords can apply for permission to raise rent more than the approved amount. These are called "above-guideline rent increases." If you rent in PEI and have received notice of a higher-than-normal rent increase, it's important to know your rights and what steps you can take.

What Is an Above-Guideline Rent Increase?

An above-guideline rent increase happens when a landlord receives approval from the Island Regulatory and Appeals Commission (IRAC) to raise your rent beyond the standard annual guideline set by the province. This might occur due to major repairs, renovations, or large increases in property taxes or utilities. The Island Regulatory and Appeals Commission (IRAC) oversees these applications and decisions in PEI.

By law, landlords in PEI must follow rules outlined in the Residential Property Act when seeking to increase your rent.

When Can a Landlord Apply for an Above-Guideline Increase?

Landlords can apply to IRAC for an above-guideline rent increase in PEI if they can show legitimate reasons, such as:

• Significant, necessary capital repairs or improvements (not regular maintenance)
• Major, unavoidable increases to property taxes or utilities
• Unusual increases in operating costs beyond the annual guideline

Landlords cannot simply apply for above-guideline increases every year, or for routine repairs.

Standard Rent Increase vs. Above-Guideline Increase

• Standard increases: Must be within the PEI rent increase guideline for the year
• Above-guideline: Requires formal application to IRAC and written explanation

For more details about regular increases, see Understanding Rent Increases: What Tenants Need to Know.

Notice Requirements and Forms

If your landlord applies to IRAC for an above-guideline rent increase, they must use the correct forms:

• Form 6 – Application for Approval of Rent Increase: Used by landlords to request IRAC’s approval. See official Form 6 (PDF).
  Example: If your landlord needs to recover the cost of an essential new roof, they must submit this form to IRAC before your rent increase takes effect.
• Notice of Rent Increase: Landlords must also give tenants a minimum of three months’ written notice before any approved increase. The notice must clearly state the new rent, the percentage increase, and when it starts.
  Learn more or download at: IRAC Notice of Rent Increase (Form 4).

Your Rights as a Tenant

Tenants in PEI have the right to:

• Receive proper written notice before any rent increase begins
• Be informed of the reasons for an above-guideline increase
• Review the details of the landlord’s application to IRAC, including evidence (e.g., receipts for repairs)
• Object to or appeal a rent increase through IRAC

For a summary of rights and responsibilities, see Tenant Rights and Landlord Rights in Prince Edward Island.

How to Object to an Above-Guideline Rent Increase

When IRAC receives a landlord’s application, affected tenants will be notified. As a tenant, you can:

• Submit a written objection to IRAC with reasons (e.g., the work is not as described, or the improvement was not necessary)
• Attend a hearing (if one is scheduled) to present your side and ask questions
• Appeal the decision if you disagree with IRAC’s ruling

Key Timelines and What to Expect

• A landlord must apply to IRAC before issuing the new rent increase notice
• Tenants must receive at least three months’ notice before increased rent takes effect, unless otherwise approved by IRAC
• Objections must be submitted promptly if you wish to participate in the hearing or review

IRAC will review all information and make a decision based on PEI’s Residential Property Act [1]. If you face any other challenges—such as repairs, unresolved complaints, or questions about paying your rent—you may also find support in our Common Issues Tenants Face and How to Resolve Them section.

Practical Example

Your landlord installs a new heating system and applies for an above-guideline increase. They submit a completed Form 6 with paperwork to IRAC and give you a Notice of Rent Increase (Form 4) stating the proposed amount and start date. IRAC notifies you of the application. You review the details, disagree that the repairs were urgent, and send a written statement of objection to IRAC. You’re invited to a hearing and share your concerns before IRAC makes a decision.

What Happens if You Disagree With the Decision?

If IRAC allows the increase but you believe the process was unfair or the reasons are invalid, you may appeal their decision within a certain period. For help with appeals, consult the official IRAC website or reach out to a local tenant service.

Related Tenant Issues

Above-guideline rent increases can sometimes overlap with other concerns, such as obligations for repairs, rights after lease renewal, or regular maintenance. For a full picture of your responsibilities—including how and when to pay rent—see our Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips. Need a new place after a large rent increase? Find rental homes across Canada on Houseme to compare your options.

FAQs: Above-Guideline Rent Increases in PEI

1. Can my landlord increase my rent by more than the approved PEI guideline?
   Only if they apply to IRAC for an above-guideline increase and receive approval for a specific reason, such as major repairs or unusually high costs.
2. How much notice do I get for an above-guideline rent increase?
   You must receive at least three months’ written notice before the new rent amount starts, unless IRAC approves a shorter period.
3. Can I object to my landlord’s application for a higher rent increase?
   Yes. You have the right to submit a written objection to IRAC and attend any scheduled hearing to explain your concerns.
4. Where can I get the forms for rent increase objections?
   You can download forms from the IRAC website or request them directly from IRAC’s office in PEI.
5. What happens if I can’t afford my new rent after an above-guideline increase?
   If the increase is approved and you cannot pay, consider seeking local tenant aid or researching alternative rentals using resources like Houseme.

Summary and Key Takeaways

• Above-guideline rent increases in PEI are strictly regulated and require IRAC approval
• Always check notice requirements and respond promptly if you wish to object
• Use official forms and get help from IRAC or tenant advocacy services if you’re unsure

Staying informed helps protect your rights and keeps your housing secure.

Need Help? Resources for Tenants

• Island Regulatory and Appeals Commission (IRAC): PEI Tenancy Board – For forms, applications, hearings, and appeals
• PEI Government: Housing and Shelter Support – Official information and programs for tenants
• Tenant Rights and Landlord Rights in Prince Edward Island – Summary of PEI-specific tenant and landlord rules
• Local tenant advocacy organizations and legal aid services can offer free support if you need help navigating rent disputes

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1. Residential Property Act, R.S.P.E.I. 1988, Cap. R-13.1. Read the act on the IRAC website.
2. Island Regulatory and Appeals Commission (IRAC). Residential Tenancies – Official IRAC information for tenants.

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