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Rent hikes officially capped as P.E.I.'s new Residential Tenancy Act takes effect

Landlords on P.E.I. are now limited in the amount they can raise rent after the province’s Residential Tenancy Act came into in effect.

Some renters faced big increases in weeks before deadline, says tenants' rights group

Shane Ross · CBC News ·
Rental sign.
Rental increases on P.E.I. are now capped at three per cent, though landlords can apply to IRAC for an additional three-per-cent increase. (CBC)

Tenants on P.E.I. can rest assured their rent won't rise by more than six per cent a year going forward, but that comes as little consolation to renters whose landlords were allowed larger increases before the Residential Tenancy Act finally came into effect on Saturday.

The new act allows the Island Regulatory and Appeals Board to set the annual maximum rent increase at no more than three per cent.

Landlords have the right to apply for an extra three per cent a year on top of that.

However, the maximum allowable increase for 2023 is still zero per cent on all rental units for the period between Jan. 1-Dec. 31, based on separate legislation passed in November. Landlords can still apply for a greater than allowable increase of three per cent by following standard procedure.

The landmark legislation was passed last fall, but required a decision of cabinet to bring it into force. Two days after the April 3 election, Premier Dennis King's cabinet set April 8 as the date for the new act to come into effect.

On Tuesday, IRAC said any applications made before last Thursday at 4 p.m. AT will be assessed under the old rules, with no limits on increases.

Cody Pater of P.E.I. Fight for Affordable Housing.
Cory Pater of P.E.I. Fight for Affordable Housing says some tenants have had to move because they couldn't afford rent increases instituted before the cap came into effect over the weekend. (Shane Hennessey/CBC)

Cory Pater, of the tenants' rights group P.E.I. Fight for Affordable Housing, said the act came into effect too late for some renters whose landlords scrambled to beat the deadline. 

One application for a rent exception shared with CBC News called for a 96-per-cent increase.

136 applications for rent increases

"It's been an almost astronomical increase for some people," Pater said. "We've had folks who have had to move because they're on [a] fixed income, where they just can't afford it.... Most people who are renters are in more dire financial straits than your average homeowner."

As of March 31, IRAC had received 136 applications for rent increases, involving almost 1,000 rental units.

So far, IRAC has ruled on 21 applications. Of those, 13 received the full increase the landlord had requested, four received a partial increase, and four were denied.

With files from Kerry Campbell

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