IMPORTANT NOTICE TO LANDLORDS AND TENANTS:
Please note that on April 8, 2023, the new Residential Tenancy Act came into effect. The maximum allowable rent increase for 2023 has not been impacted by this and remains limited to 0% on all units for the period between January 1, 2023, to December 31, 2023. Landlords may still apply for a rent increase greater than 0% by following the standard procedure for greater than allowable rent increases.
What does this mean for greater than allowable rent increases?
The proceeding began after the new Residential Tenancy Act was proclaimed:
If a tenant received a Form 9 application after the Residential Tenancy Act came into effect, the matter will be processed under the new legislation, which limits any greater than allowable rent increase to 3%.
The proceeding began before the new Residential Tenancy Act was proclaimed:
If a tenant received a Notice before the new Residential Tenancy Act came into effect, the matter may be processed under the old legislation (Rental of Residential Property Act). Under the old legislation, there is no limit on the increase that a landlord may request in an application.
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?
You can view Orders for previous maximum allowable rent increases here.