The maximum allowable rent increase for 2025 is 2.3% on all rental units. Landlords may still apply for a rent increase greater than 0% by following the standard procedure for greater than allowable rent increases.
What you need to know about rent increases in PEI:
- PEI has rent control laws.
- Landlords can only increase rent once a year, and must provide 3 months’ written notice to the tenant for the annual allowable rent increase.
- Landlords must give a tenant notice of a rent increase on an approved form.
- Rent increases are attached to the unit, not the tenant.
- Rent cannot be automatically increased between tenants.
- Landlords wishing to increase rent above the allowable amount must apply to the Rental Office for approval and provide a copy of the application to the tenant.
Maximum allowable rent increase
Every year, the Director of Residential Tenancy sets the maximum allowable rent increase, which is the allowed percentage that landlords may increase their rent by. On December 1, 2022 the Legislative Assembly passed legislation to limit the maximum allowable rent increase to 0% on all units for the period between January 1, 2023 to December 31, 2023. Starting in 2024, the new Residential Tenancy Act will limit the annual maximum allowable rent increase so that it cannot exceed 3%. Each year, the maximum allowable rent increase will be set by the Director of Residential Tenancy. This maximum allowable increase may range from 0% to 3% (at maximum).
How often can a landlord increase rent?
A landlord is only permitted to increase rents once every 12 months. If the increase is within the maximum allowable rent increase amount, the landlord must provide at least 3 months’ notice that rent will be increasing. If the landlord wants to increase rent more than the annual allowable amount, they will have to file a Form 9- Landlord Application to Request Additional Rent Increase with the Rental Office and then provide a copy of this application to the tenant within 10 days.
How does a tenant file for Return of Rent claim for improper rent increase?
If a tenant believes the landlord has improperly increased the rent beyond the allowable amount or before 12 months has passed since the last increase, the tenant can file a Form 2(A) -Tenant Application to Determine Dispute with the Rental Office. The relevant section of the form is (b) To request a return of rent due to an unlawful rent increase.
The tenant must provide evidence of the improper rent increase which could include a copy of former tenant’s rental agreement or a real estate listing showing the previous rent.
Where can I view Orders and information related to previous maximum allowable rent increases?
2024
Notice – 2024 Maximum Allowable Rent Increase
2023
Order LR 22-54 -2023 Maximum Allowable Rent Increase
Notice – 2023 Maximum Allowable Rent Increase
2022
Order LR21-39 – 2022 Maximum Allowable Rent Increase
2022 Residential Rent Increase Summary Report
View allowable rent increases since 1989
You can view Orders for previous maximum allowable rent increases here.