Rent Increases

Important Evidence Required

The landlord must submit to the Rental Office the following publicly accessible Registry of Deeds documents that are available on GeoLinc Plus:

1. The landlord’s deed to the rental property;
2. All mortgages registered against the rental property since the date of the landlord’s purchase;
3. GeoLinc Assessment Report;
4. GeoLinc Registry Report; and
5. GeoLinc Tax Report.
   

Here is the link to gain access to GeoLinc Plus:

Log in to GeoLinc Plus – Tax and Property Information – Government of Prince Edward Island

The following additional information and documents should also be submitted by the landlord to the Rental Office by the evidence deadline:

• Copies and details of all the rental agreements affected by the rent increase
• Civic addresses of the rental units
• Dates the tenants moved into the rental units
• Types of agreements – fixed term, month-to-month or a fixed term that converted to a month-to-month
• Type of units – apartment, half-duplex, single family dwelling, etc.
• Date the building was acquired by the landlord
• Name of registered owner of building

The information and documents below are required for a two-year period ending as close as possible to the date the rent increase is to begin:

• Landlord’s Financial Statement Form 15
• Rental income (rent ledger summarizing income from the property)
• Other income from the rental property – i.e. coin-operated laundry facilities
• Mortgage statements showing the periodic principal, interest, other costs paid, and the current amount of the mortgage.
• Heating costs
• Water and sewer costs
• Electricity costs
• Property tax costs. If the tax assessed value does not reflect the market value of the property then the landlord should consider submitting into evidence an appraisal, and/or the landlord’s building purchase documents.
• Management fees
• Maintenance costs
• Capital expenditures. Capital expenditures that are proposed but not completed may only lead to a rent increase effective at the time the work is completed and proof of completion has been approved by the Rental Office.
• Any other costs of the landlord not included in the above list.

The landlord is not required to submit costs the tenant is paying, i.e. electricity or heating. If any of the above information significantly changes between the date the landlord serves the Rent Increase Notice and the hearing date, then the landlord should provide the Rental Office with evidence regarding the change.

Best practices are for a landlord to have all of the above evidence ready at the time the Rent Increase Notice is served. A Rent Increase Application supported by insufficient evidence may result in the application being dismissed at a hearing.

All documents submitted into evidence with the Rental Office will be shared with the other party. Any redactions (blacking out or marking out) must be made by the landlord and tenant before the documents are sent to the Rental Office. The Rental Office is not responsible for making any redactions to the documents submitted into evidence.

The parties are responsible for maintaining the confidentiality of all documents submitted into evidence.

The Rental Officer will make a determination on the application for rent increase greater than the allowable amount based upon the following:

• Whether the increase in rent is necessary in order to prevent the landlord from sustaining a financial loss in the operation of the rental units;
• Increased operating costs or capital expenditures provided by the landlord;
• The expectation of the landlord to have a reasonable return on their capital investment; and
• The date and amount of the last rental increase.

The Rental Officer will issue a written decision to the parties after the hearing is completed. The landlord must have a decision from the Rental Office before a greater than allowable rent increase can be charged.