Disputing a Rent Increase in Prince Edward Island: Tenant Guide

If you’re renting in Prince Edward Island and worried about your landlord increasing your rent, it’s important to understand your rights and the steps you can take. PEI has unique laws that protect tenants from unreasonable rent increases. This guide walks you through how landlords must give notice, how much they can raise your rent, and how you can dispute an increase if you believe it is unfair. We explain each step in plain language to help you protect your home and your budget.

Understanding Rent Increase Rules in Prince Edward Island

In PEI, rent increases are regulated under the Rental of Residential Property Act^[1]. Landlords must follow specific rules about when and how they can increase rent:

• They must give written notice at least three months before the increase takes effect.
• Rent can only be increased once every 12 months.
• The amount of the increase is limited by the annual guideline set by the Island Regulatory and Appeals Commission (IRAC).
• Landlords wishing to raise rent beyond the guideline must apply to IRAC for approval.

For more information about your provincial rights, see Tenant Rights and Landlord Rights in Prince Edward Island.

The Role of IRAC in Rent Disputes

IRAC, the Island Regulatory and Appeals Commission, oversees all residential tenancy issues in PEI, including disputes about rent increases. IRAC is your main resource for forms, housing rules, and submitting disputes.

How Landlords Must Deliver Rent Increase Notices

Landlords must use the official "Notice of Increase in Rent" (Form 10) to inform tenants of any upcoming increase. This form must:

• State the current and new rent
• Specify the date the new rent begins (minimum three months’ notice)
• Be given in writing using IRAC’s official format

Official Form: Notice of Increase in Rent (Form 10)

Example: If your landlord wants your rent to go up on September 1, you must get Form 10 no later than June 1.

When Can You Dispute a Rent Increase?

If you believe a rent increase is above the guideline, improperly noticed, or otherwise unfair, you can apply to IRAC to dispute the increase. Common reasons tenants successfully dispute rent increases include:

• The landlord did not give proper notice
• The increase is above the official guideline and not approved
• The landlord did not wait at least 12 months since the last increase

Sometimes, tenants have additional rights if the property is subsidized or subject to rent control. For further basics about ongoing rental obligations, visit What Tenants Need to Know After Signing the Rental Agreement.

How to Dispute a Rent Increase in PEI: Step-by-Step

Taking action quickly ensures your rights are best protected. Here’s what to do if you wish to dispute your landlord’s rent increase:

1. Review your rent increase notice and make sure it follows the rules (correct form, 3 months’ notice, and increase is within guidelines).
2. If you have grounds to dispute, complete the "Application by Lessee to Set Aside Notice of Increase in Rent" (Form 2A).
3. Submit Form 2A to IRAC within 20 days of receiving the rent increase notice.
4. Include any supporting documents (lease, prior notices, or correspondence with your landlord).
5. Wait for IRAC to schedule a hearing — both you and your landlord will be able to present your sides.
6. IRAC will issue a decision to confirm, change, or cancel the rent increase.

Official Form: Application by Lessee to Set Aside Notice of Increase in Rent (Form 2A)

If you miss the 20-day window for submitting Form 2A, the rent increase may take effect — act promptly.

Summary of Dispute Process

Tenants in PEI have clear procedures to dispute rent increases that do not follow the law. Following each step gives you the best chance to protect your rights and keep your rent affordable.

What Happens After Your Dispute?

After your application is reviewed and the hearing is complete, you will get a written decision from IRAC. Until you receive a final decision, keep paying rent as usual — at the current rate, not the increased rate.

Having open, respectful communication with your landlord can sometimes help resolve issues before or after the hearing. For help preparing or more on tenant-landlord responsibilities, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

Tips to Prepare for a Rent Dispute

• Organize paperwork, including your lease and copies of all notices
• Track all communications with your landlord
• Review the Rental of Residential Property Act and IRAC guidelines
• If needed, seek assistance from tenant organizations or legal aid

PEI Rent Increase Guideline

Each year, IRAC sets a maximum annual percentage for rent increases. You can check the current guideline here. Any increase above this requires your landlord to get approval before serving notice.

For perspective on how rent increases work in other provinces, see Understanding Rent Increases: What Tenants Need to Know.

For finding a new rental or comparing your options, you can always browse apartments for rent in Canada and see what’s available in your area.

FAQs: Rent Increase Disputes in Prince Edward Island

1. Does my landlord have to use an official form to increase my rent?
   Yes, landlords must use IRAC’s "Notice of Increase in Rent" (Form 10) and provide it to you in writing.
2. Can my landlord raise my rent more than once per year?
   No, rent can only be raised once in a 12-month period under PEI law.
3. What if my landlord tries to increase my rent above the guideline?
   Your landlord must apply to IRAC for permission to exceed the guideline. You can dispute any increase you believe is unfair or improperly noticed.
4. How long do I have to dispute a rent increase?
   Tenants have 20 days from when they receive the notice to file a formal dispute (Form 2A) with IRAC.
5. Will I have to move out if I dispute a rent increase?
   No, you can stay in your home while the dispute is being decided. Continue paying your current rent until IRAC issues a decision.

Conclusion: Key Takeaways for PEI Tenants

• Rent increases in PEI are tightly regulated and must meet specific rules.
• You have the right to dispute increases by following the formal process through IRAC.
• Act quickly, keep records, and don’t be afraid to ask for help if you need it.

Knowing PEI’s rules puts you in control and helps keep your rent fair and affordable.

Need Help? Resources for Tenants

• Island Regulatory and Appeals Commission (IRAC) – Rental Property Office: For forms, rent guidelines, and filing disputes.
• Community Legal Information PEI: Free information for tenants on rights and applications.
• PEI Tenant Information: Government resources on renting and disputes.

---

1. Rental of Residential Property Act (PEI)
2. Island Regulatory and Appeals Commission (IRAC) Rental Property Office

Categories

Tenant Rights & Responsibilities Rent & Deposits Leases & Agreements Moving In / Out Maintenance & Repairs Evictions Roommates & Shared Housing Discrimination & Accessibility Utilities & Services Affordable Housing & Subsidies Dispute Resolution & LTB Safety & Security Privacy & Entry by Landlord Special Tenancy Situations Tenant Insurance & Liability Post-Eviction Resources Landlord Compliance & Penalties Legal Precedents & Case Summaries Mental Health & Tenancy