Attention Residential Tenants and Landlords
The Director of Residential Tenancy has set the maximum Annual Allowable Rent Increase, effective January 1, 2025, at 2.3% on all rental units, heated or unheated, including mobile home sites.
On April 8, 2023, the Government of Prince Edward Island proclaimed the Residential Tenancy Act and the Residential Tenancy Act regulations. Under Subsection 49(3) of the Residential Tenancy Act, the annual allowable rent increase cannot exceed 3%.
The 2025 Maximum 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 increase, 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.
The Commission averaged the monthly change in CPI, as reported by Statistics Canada, over the 12-month period that ends at the end of June of the previous calendar year and rounded to the first decimal point. This resulted in an average percentage change of 2.3% for the period July 2023 to June 2024.
Based upon the factors set out in the Residential Tenancy Act, including a limit of 3% increase per calendar year, the 57 written submissions from landlords and tenants, the average percentage change in CPI of 2.3%, and no additional factors specified in the regulations, the Director has determined that the 2025 annual allowable rent increase for all residential properties will be 2.3%.
Click here to see the 2025 Annual Allowable Rent Increase News Release
Click here to see the 2025 Annual Allowable Rent Increase Background Information