The maximum allowable rent increase on Prince Edward Island will be six per cent in 2024, says the province’s director of residential tenancy.
Landlords can raise the rent by three per cent without having to go to the Island Regulatory and Appeals Board, provided they give tenants at least three months notice, according to a news release issued Monday.
They can apply to IRAC for an additional three per cent increase, for a total of six per cent over the 2023 rent, but must submit arguments about why they need that when they do so.
P.E.I.’s rules say landlords must provide at least three months of notice to tenants if there will be a rent increase. They can raise the rent for each tenant only once every 12 months.
This reflects guidelines set out in the Residential Tenancy Act implemented last year. However, separate legislation passed by the provincial government capped rent increases at zero per cent for 2023, in light of how much inflation was hurting Islanders on low or fixed incomes.
The 2024 maximum annual allowable rent increase is based on a section of the Residential Tenancy Act that sets out a formula and requires the director of residential tenancy to establish the allowable increase.
The formula takes into account the year-over-year percentage change in the Consumer Price Index for Prince Edward Island, which was calculated at 6.1 per cent.
The director also considered 106 written submissions from landlords and tenants.