Prince Edward Island Notice Rules for Rent Increases

Are you a tenant in Prince Edward Island concerned about how—and when—your landlord can increase your rent? Knowing the rules about rent increases is an important part of understanding your rights and maintaining housing stability. Prince Edward Island’s laws set clear notice requirements and procedures that all landlords must follow. This guide explains the process in plain language, ensuring you’re prepared and informed.

Who Regulates Rent Increases in PEI?

Residential tenancy issues in Prince Edward Island are managed by the Office of Residential Tenancies. They administer the Residential Tenancy Act (PEI)^[1] and provide forms, dispute resolution, and information on rent-related matters.

Basic Notice Requirements for Rent Hikes

Landlords cannot increase your rent whenever they choose. The law in PEI protects tenants with specific rules, including these:

• Landlords must give at least three months' written notice before a rent increase takes effect.
• Only one rent increase is allowed every twelve months for each unit.
• Required notice must be provided using the official Form 10 – Notice of Increase of Rent

These rules apply whether you have a fixed-term or month-to-month agreement.

Form 10 – Notice of Increase of Rent

• Name: Form 10 – Notice of Increase of Rent
• Use: This is the official form a landlord must use to notify you of a rent hike.
• How it’s delivered: The landlord must give you a paper or electronic copy at least 3 months before the increase starts.
• Where to find it: Official PEI tenancy forms.

Example: If your rent increase is set to start on July 1, you must receive Form 10 by April 1 at the latest.

What Happens If the Landlord Fails to Follow the Rules?

If your landlord increases the rent without proper notice, or doesn’t use Form 10, the increase may not be legally valid. You can dispute the increase through the Office of Residential Tenancies.

If you receive an informal or late notice about a rent hike, contact the tribunal right away. Don’t pay the increased rent until you have confirmation the increase is legal.

How Much Can Rent Be Increased?

In PEI, there’s an annual rent increase cap, which is set each year by the Island Regulatory and Appeals Commission (IRAC). For 2024, the allowable percentage is published on the IRAC maximum allowable rent increase page.^[2] Landlords wishing to exceed this cap must apply for approval and prove extraordinary expenses.

What If a Landlord Seeks a Larger Increase?

• Landlords must apply to the Office of Residential Tenancies for permission to increase rent above the yearly limit
• Tenants must be notified of this application and given a chance to participate in the decision process
• Decisions are based on specific criteria, such as major renovations or increased operating costs

Your Rights After Receiving a Rent Increase Notice

You do not have to move out because of a rent increase. It is your right to remain in your unit unless the landlord follows proper legal eviction procedures. If you disagree with the increase, you may:

• File a dispute with the Office of Residential Tenancies
• Attend a hearing if your landlord applies for an above-guideline increase
• Contact IRAC, as they assist with rent matters in PEI

More details about rent payment obligations and disputes can be found in Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

What Should Tenants Do If They Disagree?

Submit an application to the Office of Residential Tenancies as soon as you receive a notice you believe doesn’t comply with PEI law. Attach a copy of the notice and any relevant communication.

How to Recognize a Legal Notice

A proper Form 10 must include:

• Current rent amount
• New rent amount
• Date new rent begins
• Landlord’s name and signature
• Date served to tenant

If these details are missing, you can challenge the increase with the Office of Residential Tenancies.

It helps to be familiar with all your provincial rights. Get a full overview on Tenant Rights and Landlord Rights in Prince Edward Island.

Additional Tenant Rights Around Rent Increases

Any retaliation or negative treatment from a landlord for disputing a rent increase is prohibited. Learn more about common rent increase situations in Understanding Rent Increases: What Tenants Need to Know.

Planning a move? Browse apartments for rent in Canada and compare rental rates across the country.

1. Can my landlord raise my rent at any time?
   Landlords can only increase rent after giving you three months’ written notice with the official form and can do so just once in a 12-month period.
2. How do I know if my rent increase is too high?
   Each year, the Island Regulatory and Appeals Commission sets a maximum percentage; check the IRAC website or contact the tribunal to confirm the allowable amount for your lease year.
3. What should I do if I get an illegal rent increase?
   Contact the Office of Residential Tenancies, file a dispute, and do not pay the increased amount until the dispute is resolved.
4. Do rent increase rules apply to all types of rentals?
   There are some exemptions (for example, care homes), but most residential tenancies in PEI follow these rules. Check with the tribunal for your specific situation.

Conclusion: Key Takeaways for Tenants

• Landlords must give three months’ written notice—using Form 10—before raising rent.
• Annual increase caps are enforced and above-cap increases require approval.
• You can challenge improper increases through the Office of Residential Tenancies.

Knowing your rights ensures you are protected and confident in responding to any rent increase notice.

Need Help? Resources for Tenants

• PEI Government Landlords and Tenants Page
• Office of Residential Tenancies — Inquiries: (902) 368-4765 | Email: askrentalinquiries@gov.pe.ca
• Island Regulatory and Appeals Commission (IRAC) – Rent Increase Info
• Contact local tenant advocacy groups for support or legal information.

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1. Residential Tenancy Act (PEI) – official text
2. IRAC Maximum Allowable Rent Increase (PEI)

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