Record rent increases approved for P.E.I. landlords

Landlords of heated premises in P.E.I. can raise their rents by a record amount — nine per cent — in 2009, the Island Regulatory and Appeals Commission said Tuesday.

Previously, the largest increase was 7.5 per cent in 2006. There were increases of 3.0 and 1.0 per cent in 2007 and 2008, respectively.

The rents for unheated premises can increase by up to 3.0 per cent, which is also a higher than average increase, IRAC said as it announced the increases in an update to its website Tuesday.

Earlier in September, IRAC reported a large increase in submissions regarding rent increases. It said it usually receives only a handful, but this time received 18 submissions from landlords and 13 from tenants or on their behalf.

Some landlords had asked for increases of as much as 30 per cent to help them cover the increased cost of heating. Tenants were asking for no more than five per cent.

"It was quite a balancing act to come up with something in between that meets the needs of both the landlords and the tenants," said IRAC vice-chair Brian McKenna.

McKenna said IRAC looked far beyond heating costs in determining an appropriate allowable increase, including the consumer price index, property taxes, Waste Watch fees, electricity, maintenance and interest costs.

IRAC wanted to ensure landlords could cover their costs this year, said McKenna, and perhaps make a bit of profit.