Rent Increases
2025 Guidelines
Effective January 1, 2025, the maximum Allowable Rent Increase has been set at 2.3% on all rental units, heated or unheated.
Frequently Asked Questions
When and how often can I raise rents?
Landlords are allowed to increase rent once every 12 months.
How much notice is required?
Landlords are required to give tenants three months written notice of any increase. Landlords must complete a Form 8 − Tenant Notice of Annual Allowable Rent Increase.
Can I increase rent between tenants or while it's vacant?
No. On PEI, rent is tied to the rental unit and not the tenant or the landlord. If it’s been less than 12 months since the last increase, you cannot raise rent.
A landlord may apply for an additional rent increase by filing a Form 9 – Landlord Application to Request Additional Rent Increase.
Can I increase rent after renovating a vacant unit?
No. If you want to increase rent by more than the allowable amount, you must apply with the PEI Rental Office by completing a Form 9 − Landlord Application to Request Additional Rent Increase and Form 10 − Landlord Statement of Income and Expenses.
Under the new legislation, greater than allowable rent increases are limited to 3% per year. If the landlord requests a larger increase than 3%, the Director may approve the increase, but the increase would need to be phased in over time. Each year, the increase would need to comply with the legislation.
Can I change the services I provide tenants?
You cannot terminate or restrict services if they are essential for the tenant’s enjoyment of the unit or specified in the tenancy agreement.
Can I apply increases from previous years after a tenant moves?
A landlord may apply for an additional rent increase for previous years by filing a Form 9 — Landlord Application to Request Additional Rent Increase. The application must meet the 2-part test set out in Section 50 (5) of the Residential Tenancy Act.
Increases not applied in previous years
(5) The Director may approve a rent increase that incorporates annual increases that were not applied to the rent charged for a rental unit where the landlord provides proof satisfactory to the Director that
(a) the rent remained unchanged for the specified years; and
(b) that the last tenant whose rent remained unchanged during the specified years left the rental unit voluntarily.
Maximum Allowable Rent Increases
The maximum allowable rent increase is set by the Director of Residential Tenancy on an annual basis. For 2025, the maximum Annual Allowable Rent Increase is 2.3% on all rental units, heated or unheated.
Additional Rent Increases
Additional rent increases cannot exceed 3% per calendar year.
How to increase rents
In order to be compliant with the new Residential Tenancy Act, you are required to give your tenant 3 months’ written notice by completing a Form 8 − Tenant Notice of Annual Allowable Rent Increase. The rent increase cannot be more than the maximum Allowable Annual Rent Increase set by the Director of Residential Tenancy.
You can only increase rent once in a 12-month period, even if a new tenant moves in, or you’ve completed renovations on the unit.
Increases above the maximum allowable
Under the new legislation, additional rent increases are limited to 3% per calendar year.
To qualify for greater than allowable rent increases, you must complete a Form 9 − Landlord Application to Request Additional Rent Increase and submit it to the PEI Rental Office, as well as the tenant. Landlords must have approval from the Director in order to increase rent above the maximum allowable amount.
The PEI Rental Office will schedule a hearing to hear your case for an additional rent increase.
You will also need to submit a Form 10 − Landlord Statement of Income and Expenses and supporting documents.
You will then need to provide information such as:
- Rent ledger
- Mortgage expenses
- Utility expenses
- Maintenance and management fees
This information will be used as evidence during your hearing.
Resources
Form 8
Tenant Notice of Annual Allowable Rent Increase
Form 9
Landlord Application to Request Additional Rent Increase
Form 10
Landlord Statement of Income and Expenses