Renting out property in Prince Edward Island
Prince Edward Island has rent control. The Director of Residential Tenancy sets an allowable increase for each calendar year, and the Act caps that figure at 3%. Security deposits of up to one month's rent must be placed in an interest-bearing account in the province within two banking days, and late returns can cost a landlord double. The Director of Residential Tenancy (Residential Tenancy Office) administers the Act and decides disputes, and the Director's orders can be appealed to the Island Regulatory and Appeals Commission (IRAC).
Rent increases
- Rent control
- Rent control: an annual allowable increase set by the Director, capped at 3% by the Act
- How often
- Once every 12 months, counted from the last increase or from when rent was first payable
- Written notice
- At least three months' written notice for monthly or fixed-term tenancies (three weeks for weekly) on the approved form, signed, stating the effective date, the increase and the new rent
- Current guideline
- We could not confirm the 2026 allowable increase from an official source (the 2025 figure was 2.3%). Check the figure the Director of Residential Tenancy has published for the current year before serving notice. By law it cannot exceed 3%, and landlords can apply for up to 3% more.
Security deposits
- Maximum
- One month's rent (one week's rent for weekly tenancies). Only one deposit per tenancy.
- Who holds it
- The landlord, in trust, in an interest-bearing account in PEI within two banking days. Landlords with three or more units must use a trust account.
- Interest
- Credited to the tenant at the rate set by regulation
- Returning it
- Within 15 days after the tenancy ends, repay the deposit with interest or apply to the Director to claim against it. A landlord who misses this cannot claim against the deposit and must pay the tenant double the deposit.
Other essentials in Prince Edward Island
- Written agreements: tenancies must be in writing and include the information the Act lists (names, addresses, rent, deposit terms and so on). Give the tenant a copy within 10 days.
- Entry: at least 24 hours' written notice for repairs, inspections and similar purposes, or the tenant's permission. Showings to prospective tenants are limited to between 9 a.m. and 9 p.m.
- Above-guideline increases: apply to the Director and notify the tenant on the approved form within 10 days of applying. Any approved amount is limited to 3% beyond the allowable increase.
- Approved forms are required for rent increase notices, termination notices and inspection reports.
- Service animals cannot be banned by lease terms.
How Propvara helps PE landlords
- Record each deposit with its account and reference in tenancies and deposits, and get an alert for any deposit with no holder recorded, which helps with the two-banking-day rule.
- Rent change history with effective dates shows when an increase is next allowed. Province-aware rent increase checks and notices will apply the current allowable increase.Coming soon
- Timestamped photos and history on every repair case support a claim against a deposit.
- Track rent supplement contracts with agency and tenant portions that change over time.
Prince Edward Island landlord questions
How much can I raise the rent on PEI?
Up to the allowable increase the Director sets for the calendar year, which cannot exceed 3%. Check the published figure for the current year, and give three months' written notice on the approved form.
Can I apply for more than the allowable increase?
Yes. Apply to the Director and notify the tenant within 10 days of applying. An approved additional increase is limited to 3% above the regular maximum.
Where do I keep the security deposit?
In an interest-bearing account in PEI, deposited within two banking days. If you rent three or more units, it must be a trust account.
What if I miss the 15-day deposit deadline?
You lose the right to claim against the deposit and must pay the tenant double the deposit amount.
Official sources
- PEI Residential Tenancy Act (consolidation, PDF)
- IRAC Order LR25-31 (appeal of a Director's rent order, 2025)
- PEI 211: Rental hearings (IRAC)
This guide is general information, not legal advice. Rules change; confirm with the Residential Tenancy Office (Director of Residential Tenancy); appeals to IRAC or a lawyer before acting.
Related reading
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