Illegal Rental Fees in Prince Edward Island: Tenant Guide

If you're renting a home or apartment in Prince Edward Island, it's important to understand which fees landlords are legally allowed to charge – and which ones are not. Unlawful fees can unexpectedly increase your costs and create stressful situations. This article explains illegal fees for tenants in PEI, what to do if you're charged one, and the steps you can take to protect your rights.

Who Regulates Tenancy Fees in Prince Edward Island?

Residential tenancy matters in PEI are handled by the Island Regulatory and Appeals Commission (IRAC) Rental Office. The key law covering tenant and landlord rights is the Rental of Residential Property Act^[1].

What Fees Are Illegal for Tenants?

Under the Rental of Residential Property Act, landlords are limited in the types of fees they can ask from tenants. The main legal deposit is a security deposit, with a maximum amount set by law. Other fees are often considered illegal, even if written in the lease agreement.

Examples of Illegal Fees in PEI

• Application Fees: Landlords cannot charge a fee just to apply for a unit.
• Non-refundable Cleaning Fees: Tenants cannot be forced to pay a cleaning fee separate from the security deposit.
• Lock Change Fees (unless caused by tenant): Landlords must cover normal lock changes unless there’s proven tenant neglect.
• Key Deposit over actual cost: Charging more than the real replacement cost for lost keys is not permitted.
• Move-in or Move-out Fees: These are not allowed unless costs are reasonable and for services requested by the tenant.
• Administration Fees: Extra charges for processing rent or paperwork are generally not permitted.

Some landlords may still include such fees in their lease agreements, but these are unenforceable under PEI law.

Which Fees Are Allowed?

Landlords in PEI can only require:

• A security deposit (up to one month's rent)
• Rent, as agreed
• Utilities, if your lease specifically states the tenant is responsible

For a detailed explanation of deposits, see Understanding Rental Deposits: What Tenants Need to Know.

What Should Tenants Do If Charged an Illegal Fee?

If your landlord is asking for a forbidden fee, remember:

• You do not have to pay unlawful fees, even if the lease mentions them.
• Document every communication with your landlord in writing.
• If pressured, you have the right to challenge the fee through the IRAC Rental Office.

Filing a Complaint with IRAC Rental Office

The IRAC Rental Office provides an Application by Tenant (Form 2T) to resolve disputes. This form lets you formally state your issue and request the illegal fee to be removed or refunded.

• Form: Application by Tenant (Form 2T)
• When to use: If you are charged or have paid an illegal fee, or your landlord insists on collecting one
• Official source: IRAC Rental Office Applications and Forms

It can be helpful to review your rights and responsibilities in Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

How to Protect Yourself from Illegal Fees

• Read the rental agreement carefully and know your rights before signing
• Politely ask your landlord to remove or ignore any illegal fee clause
• Keep records of all payments, charges, and correspondence
• Report inappropriate charges promptly to IRAC

For further background about PEI's rental market and tenant rights, visit Tenant Rights and Landlord Rights in Prince Edward Island.

You can also Browse apartments for rent in Canada and compare options from coast to coast using Houseme, an all-in-one rental platform.

Frequently Asked Questions: Illegal Rental Fees in PEI

1. Can a landlord charge for routine repairs or maintenance?
   No. Routine repairs and maintenance are the landlord’s responsibility under PEI law, unless the tenant caused the damage.
2. Are late rent payment fees legal?
   Only if clearly stated in the lease and reasonable, but they cannot be excessive. If you feel the fee is unfair, contact IRAC Rental Office.
3. What if my lease includes an illegal fee?
   The clause is not enforceable. You do not need to pay any fee that breaks the Rental of Residential Property Act regardless of the agreement’s wording.
4. I already paid a prohibited fee. Can I get it back?
   Yes, you can apply to IRAC Rental Office for an order to refund the fee using the Application by Tenant (Form 2T).

Key Takeaways for Tenants in PEI

• Know which fees are legal and illegal under PEI rental law
• Do not pay application, admin, or non-refundable cleaning fees
• Use IRAC Rental Office resources to challenge forbidden charges

Understanding your rights helps ensure fair treatment in Prince Edward Island’s rental market.

Need Help? Resources for Tenants

• IRAC Rental Office – Residential Tenancies: Contact for complaints, forms, and dispute resolution (1-800-501-6268)
• PEI Housing Programs and Services: Government help for renters
• Community Legal Information PEI: Free tenant rights advice and information

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1. Rental of Residential Property Act (PEI)
2. IRAC Rental Office, PEI

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