Applying with a Guarantor in PEI: Tenant Legal Guide

If you’re a tenant in Prince Edward Island who needs extra support when applying for a rental, using a guarantor can make a big difference. Many landlords require a guarantor (sometimes called a co-signer), especially if you have limited rental history or credit. This guide covers what a guarantor is, the legal process involved, your rights under PEI law, and practical steps to ensure your rental application is successful.

What Is a Guarantor and When Might You Need One?

A guarantor is a person who agrees in writing to cover any missed rent or potential damages if the tenant cannot pay. Landlords may request a guarantor if:

• You have limited or no rental history in Canada
• Your income does not meet the landlord’s requirements
• Your credit history is short, weak, or incomplete
• You are a student, newcomer, or starting your first job

Guarantors must usually be adults with stable income and good credit within Canada. A parent, guardian, or close relative is a common choice, but anyone who meets the requirements can agree to be your guarantor.

Legal Requirements for Guarantors in PEI

In Prince Edward Island, landlord-tenant relationships are governed by the Rental of Residential Property Act. While this law does not require a landlord to ask for a guarantor, it allows landlords to set reasonable criteria during the application process. If a guarantor is required, their responsibilities must be clearly stated in your rental agreement.

How Is a Guarantor Added to a Rental Agreement?

Landlords in PEI typically ask the guarantor to sign the same lease or a special guarantor addendum. This document should:

• Clearly name the guarantor and their contact information
• Specify the financial obligations being guaranteed (like rent and damages)
• State the duration of the guarantee (usually matches the lease period, unless renewed)

If you or your guarantor are unsure about the agreement’s terms, you can request a copy and seek legal advice before signing.

Key Tenant Rights and Protections

• Your application cannot be denied because of race, ancestry, source of income, or family status under PEI’s Human Rights Act.
• Landlords must treat all tenant applications fairly and consistently.
• If a landlord demands extra security or unreasonable conditions, you may contact the Residential Tenancy Office for assistance.

Application Steps: Using a Guarantor Effectively

If you’re asked to apply with a guarantor in PEI, here are the typical steps:

• Inform your Guarantor: Let your prospective guarantor know their legal responsibilities. They may need to provide proof of income, ID, and consent for a credit check.
• Fill Out Application Forms: Complete the standard rental application, including guarantor sections if present. Most PEI landlords use simple forms—ask for the official rental application if in doubt.
• Sign the Lease and Guarantor Addendum: Both you and your guarantor sign the lease agreement. Carefully review all portions detailing the guarantor’s obligations before signing.
• Receive Confirmation: Once approved, request a copy of the signed lease and any guarantor agreements for your records.

Both you and your guarantor should keep these documents in case of future issues or disputes.

Relevant Forms and Where to Get Help

• Rental Application Form: While there is no strict government-required format, many landlords use their own. If a dispute arises or you feel pressured to sign extra documents, contact the Residential Tenancy Office.
• Rental of Residential Property Act Forms: The PEI government forms page provides all forms relating to disputes, terminations, and more. While there is no standalone "Guarantor Form", the lease or a separate written document will specify a guarantor’s obligations.

Security Deposits

If a landlord asks for a deposit, the amount and rules are governed by PEI law. To learn more about your rights regarding deposits, see Understanding Rental Deposits: What Tenants Need to Know.

After Signing Your Rental Agreement

Once your lease (and any guarantor terms) are signed, take some basic steps to protect yourself. For a checklist of what to do next, visit What Tenants Need to Know After Signing the Rental Agreement.

For a summary of tenant and landlord rights specific to PEI, see our full resource page: Tenant Rights and Landlord Rights in Prince Edward Island.

If you are still searching for a rental, Find rental homes across Canada on Houseme.

Frequently Asked Questions

1. Is a guarantor always required in Prince Edward Island?
   No, landlords are not required to ask for a guarantor, but they may request one if you do not meet their financial or credit criteria.
2. What is the difference between a guarantor and a co-tenant?
   A guarantor agrees to pay only if you default, while a co-tenant shares equal responsibility for rent and the agreement from the start.
3. Can a guarantor end their responsibility during the lease?
   Typically, a guarantor’s obligations last for the term of the lease and cannot be ended early unless the landlord agrees in writing or the lease is renewed or renegotiated.
4. Are there government forms specifically for guarantors in PEI?
   No government-issued form is provided; the guarantee is covered in the lease or a written addendum.
5. What if my landlord is demanding unreasonable conditions from my guarantor?
   You can contact the PEI Residential Tenancy Office for help or dispute resolution.

Conclusion: What Tenants Need to Remember

• Only sign forms you fully understand — ask questions if anything is unclear
• A guarantor provides extra assurance but doesn’t diminish your tenant rights
• Contact the PEI Residential Tenancy Office if you need guidance or if a dispute arises

Remember, tenants applying with a guarantor in Prince Edward Island are protected under provincial law. Ask for support or clarification at any time during the process.

Need Help? Resources for Tenants

• Residential Tenancy Office (PEI) – Handles all tenancy disputes and questions;
• Rental of Residential Property Act – Read the full legislation;
• Tenant advocacy: PEI Advisory Council on the Status of Women or local legal aid can help with disputes;
• Explore more about PEI tenant and landlord rights: Tenant Rights and Landlord Rights in Prince Edward Island

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1. Rental of Residential Property Act, RSPEI 1988, c R-13
2. Prince Edward Island Residential Tenancy Office
3. PEI Human Rights Act

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