Lease Laws for Tenants in Prince Edward Island Explained

Understanding leases and rental agreements is essential for every tenant in Prince Edward Island. The province’s laws set out key protections and responsibilities, covering everything from how leases are formed to ending your tenancy. This guide explains what you need to know so you can rent confidently—whether you’re signing a new lease, navigating mid-tenancy issues, or preparing to move out.

Lease Types and Signing Agreements in Prince Edward Island

In Prince Edward Island, leases (also called rental agreements) are legally binding contracts between tenants and landlords. The main law governing these agreements is the Residential Tenancies Act (PEI)^[1]. Most leases are written, but oral agreements are also valid in many situations. The two main types of leases are:

• Fixed-term lease: Lasts for a set period (e.g., one year), with a specific end date.
• Month-to-month (periodic) lease: Automatically renews each month until ended by proper notice.

Your lease should spell out key terms, including the rent amount, what utilities are included, and rules for the rental.

What Must Be in Your Lease?

• The names and addresses of all tenants and the landlord
• The amount of rent and when it’s due
• Deposit amounts (if any)
• The start and end date (if fixed-term)
• Conditions about pets, smoking, or special rules

A written lease protects you if there’s ever a disagreement. Whenever possible, ask for a written agreement—even if renting from friends or roommates.

Key Tenant Rights and Obligations

Both tenants and landlords have important rights and duties under the Residential Tenancies Act. Tenants must:

• Pay rent on time and in full
• Keep the unit clean and avoid causing damage
• Allow the landlord reasonable entry for repairs or inspections (after proper notice)

Landlords must:

• Keep the premises in a good state of repair
• Provide quiet enjoyment and respect tenant privacy
• Follow proper procedures for rent increases or ending the tenancy

For a deeper understanding, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

Rental Deposits: What’s Allowed?

Landlords in PEI can only require a security deposit (sometimes called a damage deposit), and the amount can’t exceed one month’s rent. The deposit must be placed in a trust account and returned (plus interest) at the end of the tenancy unless there is damage beyond normal wear and tear or unpaid rent.

For more on this, read Understanding Rental Deposits: What Tenants Need to Know for practical advice on deposit amounts, receipts, and how to get your money back.

Forms You May Need as a Tenant

Common forms used under PEI law include:

• Form 1: Application for Rental of Residential Premises
  Used to apply for a rental unit or formalize a rental agreement. For example, you would submit Form 1 when signing a new lease. See official form and instructions.
• Form 4: Notice of Termination by Tenant
  If you intend to move out, you must provide written notice using Form 4—generally one month’s notice for month-to-month tenancies. Download Form 4 (PDF).
• Form 9: Application to Director of Residential Tenancy
  Used if you have a dispute (such as a deposit not being returned) and need the Office of the Director of Residential Tenancy to make a decision. Get Form 9 here.

Always keep a copy of any forms you submit.

Changing or Ending a Lease

Renewals, Subletting, and Notice

• When a fixed-term lease ends but neither party gives notice, the agreement usually converts to a month-to-month tenancy.
• To end a month-to-month lease, you must give your landlord at least one month’s written notice (using Form 4).
• You may sublet your rental if permitted by your lease, but you must get your landlord’s written consent.

If your landlord tries to end your tenancy, they must give a valid reason and use the correct form and notice period. If you disagree with an eviction or a rent increase, you have the right to file an application with the tenancy office.

Always read your lease carefully, and seek advice early if you have questions or run into any problems. Small steps now can prevent larger disputes later.

Where to Resolve Disputes: PEI Office of the Director of Residential Tenancy

The Office of the Director of Residential Tenancy handles all tenancy disputes, applications, and enforcement of PEI’s Residential Tenancies Act. This includes hearings about evictions, deposit returns, repairs, and more.

To apply for a hearing, tenants typically use Form 9. Supporting evidence (such as photos or written communications) can help your case.

After You Sign the Agreement: What Next?

Your responsibilities don’t end after you move in. For more information about what to do next and how to prepare for a smooth move-in, see What Tenants Need to Know After Signing the Rental Agreement.

Find rental homes across Canada on Houseme and compare listings to understand typical lease terms before you sign.

Learn more about Tenant Rights and Landlord Rights in Prince Edward Island for additional facts and updates on local laws.

1. What happens if my lease ends and I don’t give notice?
   Unless you or your landlord give proper notice, your fixed-term lease usually converts to a month-to-month tenancy under PEI law.
2. How much notice do I need to give before moving out?
   For month-to-month leases, you must give at least one month's written notice using Form 4. If your lease is fixed-term, check the agreement for specific requirements.
3. Am I entitled to get my deposit back?
   Yes, unless you owe rent or there is documented damage beyond regular wear and tear. Your landlord must return your deposit plus interest within 10 days of your moving out, minus any approved deductions.
4. What if my landlord wants to increase my rent?
   Landlords can only increase rent once every 12 months and must provide three months’ written notice. If you believe the increase breaks the rules, you can apply to the Director of Residential Tenancy for review.
5. Where do I go if I have a disagreement with my landlord?
   Contact the PEI Office of the Director of Residential Tenancy to start a formal application or resolve disputes about your lease, deposits, or repairs.

1. How do I end my tenancy properly?
   Complete Form 4 (Notice of Termination by Tenant) and give it to your landlord at least one month before the end of your intended move-out date. Keep a copy for your records.
2. How can I dispute a withheld deposit?
   Fill out Form 9 (Application to Director of Residential Tenancy), attach any evidence (like photos or move-out inspection checklists), and submit it to the Office for a decision.
3. How do I respond to a Notice of Rent Increase?
   Review the notice to ensure it follows PEI law, and if you wish to challenge it, file an application with the Director of Residential Tenancy within the stipulated timeframe.

Need Help? Resources for Tenants

• Office of the Director of Residential Tenancy: PEI’s official resource for forms, guides, and applications
• Residential Tenancy Forms (PEI Government)
• Canadian Mental Health Association (PEI Branch) – Supports tenants facing housing stress or discrimination
• If you need legal help, try PEI’s Community Legal Information service

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1. Residential Tenancies Act (PEI)

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