Leaseholder vs Occupant in PEI: Rental Rights Explained

When sharing a rental home or apartment in Prince Edward Island, it's important to know whether you are a leaseholder or an occupant. This distinction affects your legal rights, responsibilities, and how the rental laws protect you within a shared housing arrangement. Understanding these roles can prevent misunderstandings and help you handle issues such as deposits, rent payments, or leaving the rental.

What Is a Leaseholder in Prince Edward Island?

A leaseholder (sometimes called a tenant) is the person who has signed a tenancy agreement (lease) directly with the landlord. In Prince Edward Island, this person is legally responsible for:

• Paying rent and any other amounts owed to the landlord
• Following the rules in the lease and Provincial law
• Ensuring the unit is not damaged beyond normal wear and tear
• Providing proper notice to end the tenancy

Leaseholders have rights set out under the Rental of Residential Property Act of PEI¹. They can apply to the Island Regulatory and Appeals Commission (IRAC) if there's a dispute. Tenant Rights and Landlord Rights in Prince Edward Island offers a helpful primer on these legal protections.

What Is an Occupant in a PEI Rental?

An occupant typically refers to someone living in the rental unit who is not named on the lease with the landlord. This can include roommates, subtenants, or family members. Occupants:

• Do not have a direct legal relationship with the landlord
• Usually pay rent to the leaseholder—not to the landlord
• May be asked to leave by the leaseholder under certain conditions
• Are not protected by PEI's residential tenancy laws in the same way as leaseholders

Why Does This Distinction Matter?

The roles of leaseholder and occupant influence things like:

• Who is liable for damages or unpaid rent
• Who can deal directly with the landlord or apply for dispute resolution
• How notices to end tenancy should be served

For example, if you are not on the lease and the leaseholder moves out, you may lose your right to stay in the unit—even if you’ve paid rent to the leaseholder each month.

Forms for Tenants and Roommates in PEI

Official forms help manage changes or resolve issues with your rental situation. Here are a few key forms relevant for shared housing:

• Form 4 – Notice of Termination by Tenant
  View and download Form 4
  Use when a leaseholder wants to officially end their tenancy by giving notice to the landlord. Example: If one roommate (a leaseholder) wants to move out, they must deliver this form to the landlord.
• Form 2 – Application by Tenant
  View and download Form 2
  Use if you have a dispute with your landlord (as a leaseholder) and want to request a hearing at IRAC. Example: A leaseholder applies if they believe a deposit is being unfairly withheld.
• Form 7 – Application to Add or Substitute Tenant
  View and download Form 7
  Use to request landlord permission to add an occupant as a leaseholder. If your roommate wants to be added to the lease (and get legal rights), this form is required.

All forms and instructions can be found through the IRAC Residential Rental Forms page.

Deposits and Shared Expenses

Only the leaseholder(s) can officially pay or claim the security deposit with the landlord. If you’re splitting costs with roommates, clarify in writing who paid the deposit and how it will be returned. Conflicts sometimes arise if a departing roommate wants their portion back but isn’t named on the lease. For more on deposit rights, refer to Understanding Rental Deposits: What Tenants Need to Know.

Paying Rent and Handling Disputes

Leaseholders are responsible for the full rent to the landlord, even if they collect shares from other occupants. For tips on managing rent payments in a shared rental, see Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

The safest way to protect your rights in a PEI shared rental is to ensure all roommates who want legal protections are listed on the lease. This avoids problems if a roommate leaves or if disputes arise.

What Happens if a Leaseholder Moves Out?

In PEI, only those on the lease can remain after a valid notice of termination. If all leaseholders end the tenancy, other occupants typically have no right to stay unless the landlord agrees to sign a new lease with them. If you want to stay, speak with the landlord well before the move-out date to see if you can become a leaseholder.

Relevant Authority: IRAC Rental Office

The Island Regulatory and Appeals Commission Rental Office manages all official rental disputes and issues in Prince Edward Island. Leaseholders can apply here for dispute resolution, while occupants must usually rely on their arrangement with the leaseholder unless they join the lease.

For additional information on how PEI rental law works in your favor, check out Tenant Rights and Landlord Rights in Prince Edward Island.

If you’re seeking a new place or want to compare shared rental options from coast to coast, Find rental homes across Canada on Houseme for up-to-date listings and easy searches.

FAQs: Leaseholders and Occupants in PEI Rentals

1. Can an occupant be evicted without notice in PEI?
   Occupants who are not on the lease do not have direct rights under PEI law, so they can usually be asked to leave by the leaseholder with notice outlined in your informal agreement.
2. How can an occupant become a leaseholder in PEI?
   The current leaseholder can ask the landlord to add an occupant to the lease using Form 7 – Application to Add or Substitute Tenant. The landlord must approve this change.
3. Who gets the security deposit back when moving out?
   Only those named as leaseholders on the lease are entitled to the deposit directly from the landlord. Roommates should settle shares among themselves.
4. What should I do if there is a conflict with my roommate?
   Try to resolve things directly, preferably in writing. If it involves the landlord or a leaseholder issue, consider applying to IRAC for dispute resolution as a leaseholder.
5. Do all roommates need to be on the lease in PEI?
   No, but only leaseholders have legal rights and protections. It's safer for all roommates to be officially listed on the lease.

Key Takeaways

• Leaseholders are legally responsible under PEI's rental laws; occupants have limited rights
• Always clarify your role—ask to be added to the lease for legal protection
• Use the correct forms and understand who can remain in the unit if someone moves out

Need Help? Resources for Tenants

• IRAC Rental Office – File applications, get forms, and find guidance on rental disputes
• PEI Housing Services – Support for affordable housing, tenant resources, and programs
• Residential Landlord and Tenant Information PEI – Legislation guidance and FAQ
• See Tenant Rights and Landlord Rights in Prince Edward Island for more details on your provincial rights

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

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