Lease Agreement Mistakes PEI Tenants Should Avoid

Entering a new rental agreement in Prince Edward Island (PEI) can be exciting, but mistakes in your lease paperwork may cause serious issues down the road. Being aware of common errors and understanding your rights and responsibilities can help you avoid misunderstandings with your landlord and protect your tenancy. This guide highlights the key lease agreement mistakes PEI tenants often make, how to prevent them, and what to do if you need support.

Understanding Residential Leases in Prince Edward Island

In PEI, all residential leases (tenancy agreements) must follow the Rental of Residential Property Act [1]. The Office of the Director of Residential Rental Property handles tenancy disputes and administration in the province. Learn more about the Office of the Director.

Lease agreements in PEI can be written or verbal, but written leases provide proof and clarity for both tenants and landlords. Always ask for a written lease and keep a copy for your records.

Frequent Lease Agreement Mistakes for Tenants

1. Not Reading the Entire Lease Carefully

Many tenants skim the lease or sign too quickly. Always read every section, including the fine print, before signing. Look for details about rent, deposits, maintenance, and entry notice. If you are unsure about any term, ask the landlord for clarification or seek advice before agreeing.

2. Overlooking Illegal or Unfair Clauses

Phrases that contradict tenant protections under PEI law are not legally enforceable, even if written in the lease. Illegal clauses may include refusing necessary repairs, requiring excessive deposits, or waiving your basic rights. Review the Tenant Rights and Landlord Rights in Prince Edward Island to help spot red flags.

3. Not Keeping a Copy of the Signed Lease

It is crucial to have a signed copy of your lease. This serves as your record if a dispute arises about terms, rent, or responsibilities.

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4. Not Understanding Deposit Rules

PEI law limits security deposits to one month's rent. Be wary of any requirements to pay additional or non-refundable deposits. For further reading, see Understanding Rental Deposits: What Tenants Need to Know.

5. Missing Important Details

The lease should clearly include:

  • The full names of all tenants and landlord
  • Exact address of the rental unit
  • Monthly rent amount and due date
  • Deposit amount and conditions
  • Start and end date of the lease (if fixed-term)
  • What utilities or services are included
  • Rules on pets, smoking, subletting, and guests

6. Not Knowing Your Rights and Responsibilities After Signing

Make sure you are informed about your obligations and what happens immediately after you sign the lease. Our guide What Tenants Need to Know After Signing the Rental Agreement provides practical steps on next moves, rent payment, and handling issues.

7. Failing to Do an Initial Inspection

While not mandatory in PEI, it is wise to inspect your unit at move-in (and note any damage in writing or photos). This can prevent disputes over "wear and tear" or deductions at move-out. Have both tenant and landlord sign and keep a record. For more tips on inspections, see the Office of the Director’s resources.

Key PEI Rental Forms: What Tenants Need

Tenancy forms are provided by the Office of the Director of Residential Rental Property. Some key documents include:

  • Form 1: Rental Agreement — Used when starting a new tenancy. Both tenant and landlord complete, outlining all lease terms.
    PEI Form 1: Rental Agreement.
    Example: Use this form to officially record terms when moving into a PEI apartment.
  • Form 9: Application by Tenant — Used to request a remedy if your landlord is not fulfilling obligations (e.g., not making repairs, not returning your deposit).
    PEI Form 9: Application by Tenant.
    Example: If your landlord fails to fix a serious plumbing leak, submit Form 9 to the Office of the Director for review.
  • Other forms and applications are available from the Government of PEI tenancy forms page.

Tips for a Smoother Rental Experience

  • Ask for a written lease and keep a copy
  • Thoroughly read all lease terms and conditions
  • Never sign under pressure or without understanding all clauses
  • Confirm all agreements in writing (not just verbally)
  • Conduct and record a detailed move-in inspection
  • Mark important dates: rent due date, lease expiry, and notice periods

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FAQ: Lease Agreements in PEI

  1. Is a verbal lease agreement legal in Prince Edward Island?
    Yes. Verbal agreements are valid but are more difficult to enforce or prove in a dispute. Written leases are always recommended for added protection.
  2. Can a landlord include pet restrictions or "no smoking" rules in my lease?
    Yes, landlords can include reasonable rules about pets or smoking in a lease. Make sure you understand these clauses before signing, since violating them may be grounds for eviction.
  3. How much can a landlord ask for a security deposit in PEI?
    By law, landlords cannot request more than one month’s rent as a security deposit. Any request for a higher or non-refundable deposit is illegal.
  4. What if I discover damage in my new rental after moving in?
    Document the damage in writing and photos as soon as you notice it. Notify your landlord right away, ideally in writing. If not resolved, you can apply to the Office of the Director using Form 9.
  5. What should I do if my landlord tries to change the lease agreement after I move in?
    Any changes must be agreed to in writing by both tenant and landlord. Unilateral changes are not valid. Contact the Office of the Director if you need assistance.

Need Help? Resources for Tenants

  1. Rental of Residential Property Act (PEI)
  2. Office of the Director of Residential Rental Property
  3. Government of PEI - Residential Tenancy Forms

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