PEI Rent Control Exemptions: Who Is and Isn't Protected

Rent control laws in Prince Edward Island are designed to keep housing affordable, but not every rental is covered. Understanding if your home is exempt from rent control is critical—especially when facing a rent increase or lease renewal.

What Does Rent Control Mean in Prince Edward Island?

Rent control sets a maximum limit on how much landlords can increase rent each year for most residential units. In PEI, rent control is overseen by the Island Regulatory and Appeals Commission (IRAC) - Residential Rental Property Office, using the Rental of Residential Property Act¹. Each year, the government sets a guideline for the maximum allowable rent increase.

Which Rentals Are Exempt from Rent Control in PEI?

While most tenants enjoy rent increase restrictions, some types of rentals are exempt under the law. Common exemptions include:

• New construction: Units first occupied for residential purposes within the past 5 years may be exempt.
• Vacant units before new lease: When a new tenant moves in, landlords can set rent at any level for that first lease. The increase guideline only applies after initial occupancy.
• Government-subsidized housing: Some affordable housing programs with direct government oversight or subsidies may operate outside standard rent control rules.
• Seasonal or temporary accommodations: Properties intended for tourism or short-term stays are not covered.

For a full list and legal descriptions, refer to Section 8 of the Rental of Residential Property Act and the regulations under it.¹

Examples of Common Exemptions

• If you move into a brand new apartment building, rent control may not apply during the first five years the unit is occupied.
• A basement suite rented for the first time in July 2023 may be exempt until 2028.
• Short-term leased cottages or holiday rentals are not protected by rent control.

How to Check if Your Rental Is Exempt

Communicate with your landlord and review your lease for details on your unit's status. For official clarification or to dispute an exemption claim, tenants can contact IRAC for guidance. If you receive a notice of rent increase, check if your rental's construction or occupancy date falls within an exempted category.

Whenever you move in or sign a lease, consider reviewing Obligations of Landlords and Tenants: Rights and Responsibilities Explained to understand key duties and protections.

Notice and Forms: What Landlords Must Provide

Landlords in PEI must follow specific legal procedures to increase rent—whether or not the unit is exempt. Proper notice is required using official forms:

• Form 8: Notice of Increase in Rent

When and How It's Used:

If your rent is going up, the landlord must give you Form 8 at least three months before the increase takes effect. If you believe your unit isn't exempt and the rent hike exceeds the allowable guideline, you can file an objection.

Download the official form and find instructions here: IRAC PEI Rental Forms & Applications.

What If You Disagree with a Claimed Exemption?

If your landlord claims an exemption and you disagree, or you receive a rent increase notice that seems improper, you have the right to challenge it with IRAC. Follow these steps:

• Contact IRAC's Residential Rental Property Office for clarification.
• Submit a written objection using the appropriate form (see IRAC official forms page).
• Attend a hearing if required.

Disputes are reviewed under PEI’s Rental of Residential Property Act and related regulations.¹

Is PEI Rent Control Different Than Other Provinces?

Yes. Each province in Canada has its own guidelines. If you or friends rent in another area, see the Tenant Rights and Landlord Rights in Prince Edward Island for a full summary and compare with other regions.

Looking for your next home? Find rental homes across Canada on Houseme for budget-friendly listings and up-to-date rental information coast to coast.

FAQ: Rent Control Exemptions in Prince Edward Island

1. Are all new buildings in PEI rent control exempt?
   Newly constructed buildings may be exempt from rent control for the first 5 years after initial occupancy. Always check the building's occupancy date and IRAC's current exemption policies.
2. Can landlords raise my rent as much as they want if my unit is exempt?
   If your unit is exempt, annual rent increase limits do not apply, but proper notice and process are still required under the law.
3. I live in government-subsidized housing. Does rent control apply?
   Certain subsidized and co-op units operate under different funding rules and may be outside standard rent control. Contact your building manager or IRAC for specifics.
4. What if I think my landlord is wrongly claiming an exemption?
   Reach out to IRAC for a ruling. You can file an application to dispute the exemption or rent increase decision using official IRAC forms.
5. Does rent reset to market value when a tenant moves out?
   Yes, landlords can set a new rent for each new tenancy, but standard controls apply once the lease is in effect.

Key Takeaways for PEI Tenants

• Not all rentals are covered by rent control—check exemptions carefully.
• Always require official notice and correct forms for any rent increase.
• Use IRAC and government resources to resolve rent control disputes.

Understanding these rules helps you make informed decisions and avoid surprises when renting in PEI.

Need Help? Resources for Tenants

• IRAC - Residential Rental Property Office (1-902-892-3501): Information & dispute resolution in PEI
• PEI Tenant Information (Provincial Government): Guides and forms for tenants
• Community Legal Information PEI: Tenant support and legal resources (1-800-240-9798)
• Tenant Rights and Landlord Rights in Prince Edward Island: Your overview of tenancy law in PEI

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1. PEI Rental of Residential Property Act, see the full text here

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