Rent and Deposit Rules for Tenants in PEI

Understanding your rights regarding rent and deposits is essential to renting a home in Prince Edward Island. The province has clear rules protecting tenants and guiding landlords, helping you avoid surprises when moving in, living in, or moving out of a rental property. This practical guide explains deposits, how rent should be paid, what happens with increases, and how to get your deposit back.

Key Principles: Rent and Deposit Rules in Prince Edward Island

Prince Edward Island’s rental laws are set out in the Rental of Residential Property Act^[1], which governs rent payment, deposits, increases, and returns. These rules are overseen by the Island Regulatory and Appeals Commission (IRAC) Rental Office, the official body for residential tenancies in PEI.

If you’re new to renting, it’s smart to review both your lease agreement and the provincial rules that protect your rights every step of the way.

Rental Deposits: What’s Allowed?

In Prince Edward Island, landlords can only request a security deposit (sometimes called a damage deposit). This deposit:

• Cannot be more than one month’s rent
• Must be held in a trust by the landlord and not used unless there is damage or unpaid rent
• Should be returned, with interest, after you move out and the property is inspected—unless there’s damage or unpaid rent owed

For a deeper dive into deposit rules and tips for getting your deposit back, see Understanding Rental Deposits: What Tenants Need to Know.

Rules About Paying Rent

Tenants must pay their rent in full and on time, usually on the first day of each month unless your lease states otherwise. Landlords should give you a receipt for every payment. You can pay by e-transfer, cheque, cash, or another agreed method.

If you’re wondering how to handle your monthly payments or what to do if your situation changes, Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips offers actionable guidance.

Rent Increases: When and How

A landlord can only increase your rent once every 12 months, and they must give you at least three months’ written notice using the official form. The province sets an annual maximum percentage for increases—you can check this year’s rate on the IRAC website.

If you believe a rent increase is too high or wasn’t done legally, you may file an objection with the Rental Office. For more details, check Understanding Rent Increases: What Tenants Need to Know.

Official Forms for PEI Tenants

• Form 2 – Application by a Tenant: Use this form to make an application concerning rent, repairs, deposit disputes, or other issues. For example, if your landlord withholds your security deposit unfairly, you can file Form 2. Download from IRAC
• Form 5 – Notice of Rent Increase: Landlords must use this form to inform tenants of a rent increase. If you receive it, confirm it meets legal requirements. Available here
• Form 6 – Notice by Tenant to Terminate: If you plan to move out, use this form to give proper notice to your landlord. Find on IRAC’s site

Always keep a copy of your form submissions or rent receipts. If you ever need to show proof, these documents are your best protection.

Moving Out and Getting Your Deposit Back

After your tenancy ends, your landlord must inspect the unit and, within 10 days, return your security deposit (with interest) unless there are valid deductions for damage or unpaid rent. You have a right to attend the inspection.

If there’s a dispute over the deposit, apply to the Rental Office using the Application by Tenant form. Also, PEI tenants can expect fair treatment regarding return of deposits—see what’s involved when you move out in How to Get Your Security Deposit Back with Interest When Moving Out.

Where to Learn More About PEI Tenant Rights

PEI tenancy rules help you confidently manage your rental, from first payment to moving out. If you need more context on PEI’s legal framework and your responsibilities, see Tenant Rights and Landlord Rights in Prince Edward Island.

Looking for a new place? Find rental homes across Canada on Houseme with easy map-based search and up-to-date listings.

Frequently Asked Questions

1. How much can a landlord charge for a security deposit in PEI?
   In Prince Edward Island, security deposits can be no more than one month’s rent. The deposit must be held in trust and returned (with interest) when you move out, unless there’s damage or unpaid rent.
2. What notice must a landlord give for a rent increase?
   A landlord must provide at least three months’ written notice before increasing your rent, using the official Notice of Rent Increase form. Only one increase is allowed every 12 months, and it must follow provincial guidelines.
3. What happens if I don’t pay my rent on time?
   Late or missed rent can result in written notices from your landlord. Continued non-payment may end in eviction proceedings. If you’re struggling, communicate early with your landlord and seek advice from the Rental Office.
4. How can I ensure I get my deposit back?
   Attend the move-out inspection, clean the unit thoroughly, repair any damage, and ensure you have paid all rent. Keep copies of your initial inspection report and all communications for reference.
5. Which government office handles tenant-landlord disputes in PEI?
   The Island Regulatory and Appeals Commission (IRAC) Rental Office oversees all rental disputes in Prince Edward Island.

How To: Navigating Rent and Deposit Actions in PEI

1. How do I object to a rent increase?
   Review the Notice of Rent Increase. If you believe it violates PEI rules (wrong amount, insufficient notice), fill out Form 2 – Application by a Tenant, and submit it to IRAC within 20 days of receiving the notice.
2. How do I apply to get my deposit back if I disagree with deductions?
   Submit Form 2 to the Rental Office after discussing the issue with your landlord. Provide evidence, such as photos and receipts, to support your claim.
3. How do I end my tenancy properly?
   Complete Form 6 – Notice by Tenant to Terminate, providing at least one full rental period’s notice (unless your lease says otherwise) and deliver it to your landlord in person or by registered mail.

Key Takeaways

• Security deposits in PEI are capped at one month’s rent and must be returned with interest.
• Rent increases require three months’ notice and must follow the province’s annual guideline.
• Landlord-tenant disputes (including deposits and rent increases) are handled by the IRAC Rental Office using official forms.

Need Help? Resources for Tenants

• Island Regulatory and Appeals Commission (IRAC) Rental Office – Official dispute resolution and forms
• PEI Government: Rental Property Resources
• Official Tenancy Forms (PEI)
• Tenant advocacy: PEI Tenants’ Rights Information Line – 902-892-0850

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1. Rental of Residential Property Act (Prince Edward Island)
2. IRAC Rental Office, Prince Edward Island

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