Attention Residential Tenants and Landlords
The Director of Residential Tenancy has set the maximum Annual Allowable Rent Increase, effective January 1, 2024, at 3% on all rental units, heated or unheated.
The 2024 maximum Annual Allowable Rent Increase is based on Subsection 49 (2) of the Residential Tenancy Act, which sets out the formula and requires the Director of Residential Tenancy to establish the allowable increase.
In determining the maximum Annual Allowable Rent Increase, the Director of Residential Tenancy considered the factors set out in the Residential Tenancy Act. This includes factors such as the legislated 3% limit on annual rent increases, the written submissions from landlords and tenants, the average percentage change in CPI in a year, and any additional factors that may be specified in the regulations.
In determining the maximum Annual Allowable Rent Increase for 2024, the Director of Residential Tenancy considered the year over year percentage change in All-Items Consumer Price Index (CPI) for Prince Edward Island, which was provided by the Commission, and was calculated at 6.1%. The Director of Residential Tenancy also considered the 106 written submissions received from landlords and tenants. Based on these factors, the Director has determined that the 2024 Annual Allowable Rent Increase for all residential properties will be 3%.
Landlords must provide proper notice to tenants and at least 3 months’ notice if there will be a rent increase. The Tenant Notice of Annual Allowable Rent Increase form can be found here.
Please note that landlords may still apply for a rent increase greater than 3% by following the standard procedure for greater than allowable rent increases.
Please remember:
- A rent increase greater than the annual allowable amount cannot exceed 3%. This means that if the annual allowable rent increase is 3%, a landlord can file an application for up to an additional 3% increase as long as rent is increased only one time in a 12 month period.
- Landlords cannot charge an above allowable increase in rent without first obtaining an Order from the Director of Residential Rental Property.
- Landlords must provide tenants with at least 3 months’ notice on a Form 8 if there will be an allowable rent increase.
Click here to see the 2024 Annual Allowable Rent Increase News Release (En Français)
Click here to see the 2024 Annual Allowable Rent Increase Background Information (En Français)
For more information about rent increases in Prince Edward Island, please visit: Rent Increases (peirentaloffice.ca)