FAQs

NEW: Yes. Under the new Residential Tenancy Act, rental agreements must be in writing and must include the required information from Section 11(2) of the Act. The landlord must provide a copy of the tenancy agreement to the tenant within 10 days of entering the agreement.

NEW: Yes. Under the new Act, a landlord and tenant must inspect the unit together and the landlord must complete an inspection report (Form 5- Landlord Condition Inspection Report). Once the inspection report is filled out, both the landlord and tenant must sign it and the tenant must receive a copy of the report.

Both the landlord and tenant should be at the inspection and a landlord must offer a tenant at least two reasonable opportunities to complete the inspection together. If the tenant does not show up for the inspection on either occasion, the landlord must inspect the unit alone, complete and sign the report and provide the tenant a copy.

A rental agreement can only be changed after the tenant has moved in if both parties agree to the changes or with an Order from the Rental Office. Any changes must be consistent with PEI’s rental laws.

The new landlord must provide the correct name/s of the landlord and/or their agent, as well as an address and phone number to the tenant. They must also provide written notice to the tenant stating the amount being held as a security deposit and the interest on that amount.

A landlord may require a tenant to pay a security deposit as a condition of entering into a tenancy agreement or as a term of a tenancy agreement. However, a landlord cannot require a security deposit at any time other than when the landlord and tenant enter into the tenancy agreement.

No.  A landlord cannot require more than one security deposit for a rental unit.

No. The tenancy agreement cannot include the condition that the landlord can automatically keep all, or part of, the security deposit.

A landlord cannot accept a security deposit that is greater than the rent for the rental unit.  If the rent is paid weekly, it would be the equivalent of one week’s rent. If the rent is paid monthly, it would be the equivalent of one month’s rent.

If a landlord accepts a security deposit that is greater than the amount permitted under Section 14 (3) of the Act, the tenant may deduct the overpayment from rent or file a Tenant Application to Determine Dispute with the Rental Office (Form 2A).

Yes, the landlord is required to give the tenant a written receipt stating the amount of the security deposit, the date of receipt, and the rental unit address.

The landlord must deposit the money in an interest-bearing account at a financial institution located in the province authorized to accept deposits.  This must be done within two banking days from when the landlord received the security deposit.  If the landlord has three or more rental units, the interest-bearing account must be a trust account used exclusively for security deposits.

Yes. When a landlord returns the security deposit to a tenant, they shall include the full amount of the deposit, plus any interest that has accrued over the time that the landlord has held the security deposit. The amount can be determined using the Interest Rate Calculator on the Rental Office website.

A landlord has 15 days from when a tenancy ends to make a determination regarding the security deposit. The landlord can decide to:

• pay the security deposit back in full with interest, or
• file an application to with the Rental Office keep all or part of it, or
• pay back part of the security deposit with interest and file an application with the Rental Office to keep the remainder of it.

Yes, there are 2 exceptions that allow a landlord to keep all or part of a security deposit without filing an application:

• if the landlord and tenants agree in writing that the landlord will keep all or part of the funds, or

• if the landlord has an Order from the Director against the tenant for an unpaid amount.

If a landlord plans to keep any or all of the security deposit and interest, the landlord must file a Landlord Application to Determine Dispute with the Rental Office (Form 2B) within 15 days after the tenancy has ended. The relevant option on the Form is (e) “to make claim against the security deposit”.

A landlord may keep all, or a portion of, a security deposit if, at the end of a tenancy, the tenant agrees in writing that the landlord may keep the amount to pay a liability or obligation of the tenant.

A landlord may keep a portion of the security deposit if the Director of Residential Tenancy has previously ordered the tenant to pay an amount to the landlord (Example: for damages or for rent owing) and the amount is unpaid at the end of the tenancy.  The amount owing can be deducted from the security deposit when it is returned to the tenant.

A tenant can file a Tenant Application to Determine Dispute with the Rental Office (Form2A).  The relevant option on the Form would be (h) “to request the return of the security deposit“.

Yes. The landlord will not be able to make a claim against the security deposit and may be required to pay the tenant double the amount of the security deposit.

A landlord can repay a deposit by sending a cheque by ordinary or registered mail to an address provided by the tenant, by giving the deposit personally to the tenant, or by using any form of electronic payment or transfer to the tenant.

If a tenant has not provided an address to a landlord in accordance with clause 40(5)(a) within six months after the end of the tenancy, and the landlord has made reasonable efforts to repay the security deposit in accordance with subsection 40(5), the landlord may keep the security deposit. The tenant will no longer have a right to the security deposit.

A landlord may increase the rent once every 12 months. The landlord must give the tenant at least 3 months’ notice for the annual allowable rent increase.  

The 2024 maximum annual allowable rent increase at 3% on all units, effective January 1, 2024.

The Director of Residential Tenancy has set the 2025 maximum allowable rent increase at 2.3% on all rental units, effective January 1, 2025.

The general rule is no, however under the new legislation, there are limited exceptions.

No.

You can ask the landlord. The rent paid by the last tenant must also be provided in the new written Tenancy Agreement.

No. Even if the tenant agrees, a landlord cannot increase the rent above the allowable amount without an Order from the Rental Office.

File a Form 2(A)- Tenant Application to Determine Dispute. The relevant section of the form is (b) to request a return of rent due to an unlawful rent increase.

Yes, with an Order from the Rental Office.

Yes. A landlord can file an application to request an additional rent increase by filing a Form 9 – Landlord Application to Request Additional Rent Increase with the Rental Office. The Rental Office must hold a hearing and issue an Order that approves, denies, or partially approves an increase before the increase can be charged.

Important: If a landlord filed an application for a greater than allowable rent increase before the new Residential Tenancy Act came into effect, the application will be processed under the old legislation (Rental of Residential Property Act) and there is no limit on the increase that a landlord may request. If a landlord filed an application after the Residential Tenancy Act came into effect, the application will be processed under the new legislation, which limits any rent increase to 3% above the allowed amount.

No, the only valid eviction notice is a Form 4(A) – Eviction Notice- Tenant has 10 Days to Dispute or a Form 4(B) – Eviction Notice- Tenant has 1 Month to Dispute.

Yes, a tenant can dispute a Notice of Eviction. The tenant must file a Form 2(A)- Tenant Application to Determine Dispute within either 10 days or one month of receiving an Eviction Notice, depending on the reason for eviction. If you have received a Form 4(A), you have 10 days to dispute the eviction and/or pay the outstanding rent owing. If you have received a Form 4(B), you have one month to dispute the eviction.  When completing your application, you should select (a) To dispute a Notice of Termination (Form 4) on the Form 2(A).

No. Selling the rental unit is only grounds for eviction if the rental property has less than 3 units, there is a signed Agreement of Purchase and Sale and the purchaser, or their close family member, intends to live in the rental unit.

Yes, a tenant can be evicted where a landlord or their close family member, in good faith, will be moving into the rental unit. Where this happens, the landlord is required to offer the tenant another rental unit acceptable to the tenant or compensate the tenant one month’s rent plus reasonable moving expenses.

If a landlord and tenant agreed that there would be no pets, breaking that agreement by having a pet can be grounds for eviction. Even if pets are allowed, if the pet is disturbing other tenants, or causing damage, this can also be grounds for eviction.  Service animals are always permitted.

Yes.

No. A landlord may serve a tenant the day after rent was due with a Form 4A- Notice of Eviction- Tenant has 10 days to Dispute for non-payment of rent. However, if the tenant pays all of the rent that is due within 10 days, the Notice of Eviction becomes void.

Yes, the eviction rules are the same year-round.

Yes. A tenant who has received a Notice of Eviction is still responsible for rent up to the date the tenant moves out.

Yes, as of November 1, 2023, a landlord may file an application with the Director of Residential Tenancy to evict a tenant in order to repair or renovate a rental unit.

Important: A landlord must receive approval from the Director of Residential Tenancy in order to evict a tenant for repairs/renovations that are extensive enough that a tenant must leave the unit while the repairs/renovations are being completed.

1. The landlord must file a Landlord Application for Approval for Renovations / Repairs (Form 6) with the Rental Office.
2. The Director of Residential Tenancy must approve the application filed by the landlord.
3. Once approved, the landlord must provide the tenant with an Eviction Notice (Form 4B). The reason for eviction selected must be “to do repairs or renovations” (option (e) on the Form 4B). The landlord must provide the tenant with at least 6 months’ notice.

Yes, a tenant may dispute the eviction notice provided by the landlord. The tenant must file a Tenant Application to Determine Dispute (Form 2A) with the Rental Office within 1 month of receiving the eviction notice.

Yes, if you are being evicted because your unit requires repairs/renovations and the landlord has received approval from the Rental Office, the tenant has right of first refusal.  This means that once the repairs/renovations are completed, the landlord must give the tenant that was evicted the first priority to move back into the unit.

If the tenant chooses to move back in, the tenant must give the landlord notice in writing before they vacate the rental unit (which means before the repairs/renovations are started).

If the landlord does not offer the tenant the right of first refusal, the tenant may file a Tenant Application to Determine Dispute (Form 2A) with the Rental Office. The landlord may be required to pay the tenant 3 months’ rent and reasonable moving expenses for not complying with the Act.

Yes, if a tenant is evicted because a landlord is completing repairs or renovations, the landlord must compensate the Tenant 1 months’ rent and reasonable moving expenses. This is set out in subsection 70. (1) of the Residential Tenancy Act.  The tenant should receive this compensation by the vacate date indicated on the Eviction Notice (Form 4B) that was provided by the landlord. The vacate date is the day that the tenant must be out of the unit.

If a tenant is being evicted for less than one month (because repairs/renovations won’t take longer than that), and the tenant intends to move back in, the landlord must provide compensation to the tenant for the time they will be required to be out of the unit.

Example: If repairs will only take two weeks, the landlord is required to compensate the tenant for two weeks, not a full month.

If a landlord fails to give the tenant the required compensation by the vacate date, the tenant may file a Tenant Application to Determine Dispute (Form 2A) with the Rental Office to request that the compensation be paid.