How much can my landlord ask for a security deposit in Prince Edward Island?

The most a landlord can legally charge is one month’s rent. This must be kept in a separate trust account and is refundable after you move out if there is no damage beyond normal wear and tear.

How much advance notice is required before a rent increase?

Your landlord must give you a minimum of three months’ written notice using the official Form 10.

What can I do if my landlord does not return my security deposit?

Use Form 7 to apply through IRAC for the return of your security deposit if you disagree with deductions or if the deposit is not returned on time.

Can I dispute a rent increase I believe is too high?

Yes. Use Form 2 to file a dispute with IRAC. They will organize a hearing and decide if the increase is valid and compliant with the law.

Prince Edward Island Tenant Guide: Rent and Deposit Rules

Rent & Deposits Prince Edward Island published July 01, 2025

Being a tenant in Prince Edward Island comes with specific rights and responsibilities—especially when it comes to rent payments, security deposits, and navigating disputes. This guide explains the essential rules around rent and deposits, key legal forms, and practical steps so you can protect your interests and confidently handle common rental issues.

Who Oversees Tenancies in PEI?

In Prince Edward Island, residential tenancy matters are regulated by the Island Regulatory and Appeals Commission (IRAC) – Rental Office. IRAC administers the Rental of Residential Property Act^[1] and is where tenants and landlords can turn for forms, dispute resolution, and official information.

Understanding Rent: Payment and Increases

PEI law sets clear expectations for how much rent can be charged, how it must be paid, and how increases work.

Paying Rent: What Tenants Should Know

Rent is typically due at the start of each month unless otherwise agreed in writing.
Landlords and tenants can agree on how rent is paid (e.g., cheque, e-transfer, cash), but it's best to get receipts for every payment.
If you struggle with rent, talk to your landlord promptly. If issues can't be resolved, IRAC can mediate disputes.

To learn more about payment obligations and best practices, see Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

Rent Increases: Limits and Notice

Landlords must use the Form 10 – Notice of Increase of Rent from IRAC when increasing rent.
Only one rent increase is allowed every 12 months.
Landlords must provide at least 3 months’ written notice before a rent increase takes effect.
The annual allowable increase is set by IRAC each year. Landlords must follow this limit unless they receive special approval for an above-guideline increase.

If you receive a rent increase that exceeds the guideline or isn't served with proper notice, you can dispute it with IRAC by completing the Form 2 – Application by Tenant.

Security Deposits in Prince Edward Island

Security deposits protect landlords if tenants damage the property beyond normal wear and tear or fail to pay rent. In PEI:

The maximum security deposit is one month's rent.
The deposit must be placed in a separate trust account by the landlord.
After you move out, the landlord must return the deposit within 10 days—plus any accrued interest—unless deductions are justified.

For in-depth details on deposit rules, check Understanding Rental Deposits: What Tenants Need to Know.

Forms and How to Use Them

Form 10: Notice of Increase of Rent – Used by landlords to legally notify tenants of a rent increase. Must be delivered at least 3 months before the new rent applies. Download from IRAC
Form 2: Application by Tenant – Tenants use this form to dispute a rent increase, security deposit issue, or other disagreement. Submit quickly (preferably within 20 days of the issue). Download from IRAC
Form 7: Application for Return of Security Deposit – If your landlord does not return your deposit and you disagree with the deductions, file this form through IRAC. Get the application form

Each form should be filled out completely and submitted with all supporting documents (like receipts, correspondence, or the original lease) to the IRAC Rental Office. IRAC will then review and may set a hearing to resolve the issue.

Dispute Resolution for Tenants

If you have a disagreement about rent, deposits, or any rental issue that can't be solved directly with your landlord, you can apply to IRAC for mediation and resolution. IRAC handles all hearings and issues binding decisions based on the Rental of Residential Property Act.

Related Tenant Rights in PEI

Your rights concerning rent and deposits are just a part of what every PEI tenant should know. For comprehensive coverage, visit Tenant Rights and Landlord Rights in Prince Edward Island for topics like maintenance, privacy, and ending a tenancy.

Looking elsewhere in Canada? Find rental homes across Canada on Houseme — with listings from coast to coast.

FAQs: Rent and Deposit Issues in PEI

How much can my landlord ask for a security deposit in Prince Edward Island?
The most a landlord can legally charge is one month’s rent. This must be kept in a separate trust account and is refundable after you move out if there is no damage beyond normal wear and tear.
How much advance notice is required before a rent increase?
Your landlord must give you a minimum of three months’ written notice using the official Form 10.
What can I do if my landlord does not return my security deposit?
Use Form 7 to apply through IRAC for the return of your security deposit if you disagree with deductions or if the deposit is not returned on time.
Can I dispute a rent increase I believe is too high?
Yes. Use Form 2 to file a dispute with IRAC. They will organize a hearing and decide if the increase is valid and compliant with the law.
Where do I turn if I have other rental problems?
Contact the IRAC Rental Office or refer to Tenant Rights and Landlord Rights in Prince Edward Island for guidance on broader tenancy issues.

How To: Navigating Rent and Deposit Issues in PEI

How do I challenge a rent increase in Prince Edward Island?
1. When you receive a rent increase notice, check that it follows the official format (Form 10) and falls within the allowable guidelines.
2. If you object, fill out Form 2 as soon as possible and submit to IRAC with your reasons and supporting documents.
3. IRAC will set a date for a hearing if needed and issue a decision.
How do I get my security deposit back?
1. After moving out, wait up to 10 days for your landlord to return the deposit. If there are unreasonable deductions or no return, complete Form 7 and submit to IRAC.
2. Attach evidence such as the move-in inspection report and receipts.
3. IRAC may arrange a hearing or mediation.
What should I do if my landlord does not follow the legal notice period for a rent increase?
File Form 2 with IRAC. If the notice is improper or too short, the increase may be deemed invalid.

Key Takeaways for Tenants

Always get and keep copies of any rent increase notices, receipts, and correspondence.
Know your right to dispute improper rent increases or questionable deductions from your deposit via IRAC and the proper forms.
Familiarize yourself with the Rental of Residential Property Act for protection under the law.

Need Help? Resources for Tenants

IRAC Rental Office: PEI Rental Office at IRAC – Main provincial authority for all tenancy matters, rent disputes, and official forms.
Legal Information: Community Legal Information PEI – Practical legal tips for tenants and landlords.
Tenant Advocacy: Tenant Rights PEI – Information and support with common rental issues.
Understanding Rental Deposits: What Tenants Need to Know
Tenant Rights and Landlord Rights in Prince Edward Island

^[1] Rental of Residential Property Act (Prince Edward Island).