Are all roommates legally responsible if one stops paying rent?

Yes. If all roommates sign the lease, each is legally responsible for the full rent even if one stops paying.

Can my landlord deduct another roommate's damages from my deposit?

The security deposit is held collectively; deductions for damage or unpaid rent affect all tenants on the lease.

How should we split the deposit when a roommate moves out early?

Arrange repayment privately between roommates, as landlords return the deposit at the end of the tenancy.

What should I do if there’s a disagreement about rent or deposits?

Use a written roommate agreement and, if needed, apply to IRAC for dispute resolution or mediation.

Is a written roommate agreement legally required in PEI?

No, but it is recommended to help avoid future disagreements about rent, cleaning, or shared costs.

Splitting Rent and Deposits With Roommates in PEI: Tenant Guide

Rent & Deposits Prince Edward Island published June 25, 2025

Sharing a rental home with roommates in Prince Edward Island can be a smart way to save money, but it also comes with unique legal and financial responsibilities. Understanding how to fairly and legally split rent and deposits, and what to do when problems arise, is crucial for tenants on PEI. This guide explains the rules, rights, and steps you should know—using plain language and up-to-date laws.

Setting Up Your Shared Rental: Key Things to Know

Before you sign a lease, it’s important to decide how you and your roommates will divide rent, the security deposit, and any other shared expenses. In Prince Edward Island, both the process and the risks can depend on how your tenancy agreement is structured.

Single vs. Multiple Tenancy Agreements

All roommates sign the same lease: Everyone is jointly responsible for the entire rent and damages.
Each roommate signs their own agreement with the landlord: You’re responsible for your own portion only.
Subletting or informal agreements: Not always protected by law. Avoid unless officially approved by the landlord.

Make sure everyone understands their obligations before signing.

How to Split Rent and Deposits in PEI

According to the Rental of Residential Property Act of Prince Edward Island^[1], landlords can collect a security deposit of up to one month’s rent. It’s your responsibility to decide how to divide both rent and the initial deposit among roommates:

Even Split: Divide rent and deposit equally among all roommates.
Proportional Split: If rooms differ in size or amenities, you may agree on different amounts.
Written Agreement: Put your agreed split in writing with signatures from everyone. This helps resolve disputes later.

Once paid, the landlord typically returns the full deposit to all tenants at the end of the lease, unless deductions are made for damage or unpaid rent.

Security Deposit Rules and Returning Deposits

Deposits must be held in a trust account by the landlord. At the end of the tenancy, the deposit is normally returned if the rental unit is in good condition and all rent is paid. If one roommate leaves early, they should arrange repayment of their share of the deposit directly with the remaining roommates, not the landlord.

For a detailed overview, see Understanding Rental Deposits: What Tenants Need to Know.

Official Forms for Shared Tenancies in PEI

The Island Regulatory and Appeals Commission - Residential Rental Property Section (IRAC) oversees residential tenancies in PEI.

Form 1 – Application by Tenant: Use this form to apply for an order to recover a deposit, end tenancy due to issues, or resolve disputes. For example, if a roommate won’t repay your share of the deposit after moving out, you can apply to IRAC using Form 1.
Condition Report: Though not mandatory, it’s wise to complete a detailed condition report with all roommates and your landlord at move-in and move-out. This protects everyone if there are claims against the deposit.

Legislation and Your Rights

All tenants in PEI are protected by the Rental of Residential Property Act. Be sure everyone named on the lease understands their rights and responsibilities before moving in. Conflicts are handled by IRAC, who will require written proof of agreements and payments.

For wider context, check Tenant Rights and Landlord Rights in Prince Edward Island for a summary of what the law provides.

Paying Rent With Roommates: Rights and Risks

Rent is due in full, even if a roommate misses a payment. If one person doesn’t pay, the landlord can ask the others to cover the difference or serve a notice for unpaid rent. Consider using a joint account or payment app to keep records of everyone’s shares.

Learn more about your payment responsibilities in the Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

If you have an arrangement just among roommates, it’s only enforceable between you—not against the landlord. Always ensure your agreements are clear and in writing.

What Happens if a Roommate Leaves Early?

If all tenants are on the lease, the remaining roommates must cover the full rent.
Security deposit refunds will only be processed at the end of the tenancy—make private side agreements for any deposit “buy-out.”
Speak to your landlord before bringing in new roommates or making changes to your agreement.

FAQ: Roommates, Rent, and Deposits in Prince Edward Island

Are all roommates legally responsible if one stops paying rent?
Yes. If everyone signed the lease, all are jointly responsible for ensuring the full rent is paid each month, even if one tenant fails to pay.
Can a landlord refuse to return my share of the deposit if another roommate causes damage?
The deposit is dealt with as a whole. If there is damage or outstanding rent, deductions can come out of everyone’s deposit. Settle disagreements among roommates yourselves or use IRAC for mediation.
What should I do if a roommate leaves before the lease ends?
Contact your landlord and clarify your next steps. You may need to apply to IRAC for guidance, or arrange to replace the roommate according to your lease terms.
Who gets the deposit back at the end of the tenancy?
Generally, the landlord returns the deposit in a lump sum to all tenants named on the agreement. You and your roommates must decide how to split it amongst yourselves.
Is a written roommate agreement required by law?
No, but it’s highly recommended. Written agreements help avoid disputes about expenses, cleaning responsibilities, or move-out costs.

Conclusion: Key Takeaways for Tenants in Shared Rentals

Make clear, written agreements with your roommates about splitting rent and deposits.
Everyone on the lease shares legal responsibility for the whole rent and any damage.
Use official IRAC forms to resolve disputes and protect your interests.

Taking these proactive steps makes sharing a rental smoother and helps avoid common disputes.

Need Help? Resources for Tenants

Island Regulatory and Appeals Commission (IRAC) – Rental Office for forms, applications, and dispute resolution
Read the Rental of Residential Property Act (PEI)
PEI Rental Deposit Disputes Information Sheet
PEI Residential Property Rental Resources
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