What counts as a major improvement?
A major improvement is a substantial alteration, replacement, or upgrade rather than ordinary cleaning or a minor repair. Examples may include replacing a heating system, upgrading electrical wiring, installing accessibility equipment, replacing windows, or renovating a bathroom. The legal effect depends on the work, who requested it, who controls the property, and what the tenancy agreement says.
Routine maintenance and repairs are different from optional upgrades. Review Routine Repairs in Rental Units: Tenant and Landlord Responsibilities before agreeing to pay for work that may already be the landlord’s responsibility.
Who is normally responsible for the cost?
In a standard residential tenancy, the landlord is usually responsible for keeping the unit and common areas in a good state of repair and fit for habitation. A tenant may be responsible for damage caused by the tenant or a person the tenant permits to enter, but that is different from paying for an improvement that benefits the property generally.
Before paying anything, ask whether the work is required to correct a health, safety, or habitability problem. For background on related obligations, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained.
- Ask the landlord to identify the problem, proposed work, contractor, expected completion date, and total cost.
- Do not pay a deposit, reimbursement, or extra rent for improvement work without a written agreement explaining the amount and payment date.
- Keep estimates, invoices, receipts, photographs, messages, and records of any work you perform.
Written consent and a clear improvement agreement
If you want an improvement and the landlord agrees, put the arrangement in writing before work begins. The document should state whether the landlord or tenant selects the contractor, who obtains permits, who pays, who owns installed materials, who handles warranties, and what happens if the tenancy ends before the work is complete.
It should also explain whether a payment is a reimbursement, a temporary rent credit, a separate charge, or a contribution toward damage that the tenant caused. Avoid vague promises such as “the landlord will cover reasonable costs.” A specific maximum amount and approval process can prevent disagreement.
Questions to answer before signing
- Does the agreement describe the work and require written approval for changes?
- Does it state the exact payment, rent credit, refund, or reimbursement method?
- Does it address permits, building standards, insurance, and responsibility for unsafe work?
- Does it set a start date, completion deadline, access schedule, and remedy for delays?
- Does it explain what happens to unfinished work or unpaid credits if the tenancy ends?
Can an improvement justify a rent increase?
A landlord cannot simply impose a new rent amount because the property has been improved. Prince Edward Island’s rent-increase rules, notice requirements, limits, and any approval process must be followed. A tenant should receive the required written notice and should check whether the proposed increase is permitted before agreeing to it.
Do not treat a request to pay for renovations as an automatic lawful rent increase. If the landlord presents a new lease, side agreement, or rent-credit proposal, read it carefully and compare it with the current tenancy agreement. For related information, see Understanding Rent Increases: What Tenants Need to Know.
Access, disruption, and temporary relocation
Major work may require the landlord, contractors, or inspectors to enter the rental unit. Entry should follow the notice and timing rules that apply to residential tenancies, except where an emergency or another legal exception applies. Ask for advance details about the people entering, expected hours, dust or noise controls, protection of belongings, and security after each visit.
If the unit will be unsafe or unusable, ask in writing whether you must leave temporarily, who pays reasonable accommodation or moving costs, whether rent will be adjusted, and when you may return. Do not surrender the tenancy or hand over keys merely because work is inconvenient unless you understand the legal and financial consequences.
- Request written notice and keep a calendar of every entry, interruption, and missed appointment.
- Report unsafe conditions promptly and ask the landlord what immediate safety measures will be used.
- Photograph the unit before work starts and after contractors leave, while protecting personal privacy.
What to do if the landlord refuses necessary work
Send a dated written request describing the problem, its effect on the unit, and the reasonable time you are asking for a response. Attach photographs or other evidence, but keep the originals. If the landlord does not respond or the condition remains unresolved, contact Prince Edward Island’s Residential Tenancy Office for information about the available application or complaint process.
Do not hire a contractor and charge the landlord unless the landlord has authorized that arrangement in writing or the law clearly permits the remedy. A tenant who pays for urgent work should preserve the invoice and explain why the expense was necessary, but reimbursement is not guaranteed merely because the work was helpful.
How to protect yourself before funding work
- Read the tenancy agreement and every proposed improvement document before signing.
- Confirm the total amount, payment schedule, tax treatment, rent effect, and refund conditions in writing.
- Confirm who is responsible for permits, qualified tradespeople, inspections, cleanup, and correcting defective work.
- Keep a complete evidence file with messages, receipts, photographs, notices, and dates.
- Get advice from the Residential Tenancy Office or another qualified service before making a large payment.
If you are looking for a different rental after a dispute or renovation, you can Find rental homes across Canada on Houseme.
FAQ
- Can a PEI landlord require a tenant to pay for a major improvement?
- A landlord should not shift ordinary maintenance or required repairs to a tenant through an informal demand. Any voluntary tenant contribution should be clearly documented, and the landlord must still comply with the Residential Tenancy Act.
- Can a landlord raise rent because of renovations?
- A landlord must follow Prince Edward Island’s rent-increase rules, including applicable notice, timing, limits, and approval requirements. Renovations do not by themselves authorize an immediate or unlimited increase.
- Should a tenant sign an improvement agreement?
- Only sign after the agreement explains the work, cost, payment or credit, permits, access, deadlines, responsibility for defects, and what happens if the tenancy ends.
- What evidence should a tenant keep?
- Keep the tenancy agreement, written requests, notices, messages, estimates, invoices, receipts, photographs, entry records, and notes about disruption or unsafe conditions.
How-To
- Document the condition of the rental and explain in writing why the proposed improvement is needed.
- Ask the landlord for a written plan identifying the work, contractor, permits, schedule, access, and safety protections.
- Agree in writing on every payment, rent credit, reimbursement, refund, and financial responsibility before work begins.
- Monitor the work, keep records, and report defects or unsafe conditions promptly.
- Contact the Residential Tenancy Office if the agreement, repair obligation, rent increase, or entry process becomes disputed.
Help and Support / Resources
- Prince Edward Island Residential Tenancy Office for tenancy information and dispute services.
- Residential Tenancy Act for the provincial rules governing residential rentals.
- Residential tenancy forms, including current notices and applications used by landlords and tenants.
- Prince Edward Island rent-increase information for current notice and approval guidance.
