Prince Edward Island Lease Agreement Requirements for Landlords

Effective April 8, 2023, the Residential Tenancy Act (R.S.P.E.I. 1988, c. R-13.11) governs the creation and enforcement of lease agreements in Prince Edward Island. This legislation establishes mandatory terms for all residential tenancies and empowers the Rental Office to provide a standard form lease (Section 12) that landlords must provide or reflect in their agreements. Understanding what must be included — and what cannot be included (Section 15) — protects landlords from disputes and unenforceable clauses.

Written vs. Oral Agreements

While oral tenancy agreements are technically valid in PEI, written agreements are strongly recommended as they provide clear documentation of the terms agreed upon. In the event of a dispute, a written lease is far easier to enforce at the Rental Office.

The provincial government of PEI provides a standard residential lease form that covers all required elements and is widely accepted at the Rental Office.

Mandatory Lease Content (Section 13)

Every PEI residential tenancy agreement (written or oral) must include or reflect the following minimum terms:

Types of Tenancy Agreements

Month-to-Month Tenancies

• Continue until either party provides proper notice to terminate
• Tenant must provide 1 month's notice to end the tenancy
• Landlord must follow the eviction process under the Act

Fixed-Term Tenancies (e.g., 1 Year)

• End on the specified date without additional notice required from either party
• If the tenant remains after the term ends without a new agreement, the tenancy automatically converts to a month-to-month tenancy (Section 46)
• Landlords should not assume the tenancy simply ends — they must proactively renew or address the holdover

Weekly Tenancies

• Less common; typically used for short-term or seasonal rentals
• Same proportional rules apply (1 week's security deposit, etc.), but landlords must provide at least 3 months' notice for any rent increase (Section 50(1))

Prohibited Lease Clauses

PEI landlords cannot include clauses in a tenancy agreement that:

• Waive the tenant's rights under the Residential Tenancy Act
• Allow the landlord to enter the unit without proper notice (except emergencies)
• Charge fees or penalties not permitted under the Act (such as above-cap rent increases)
• Prevent tenants from filing applications with the Rental Office
• Impose Security deposits greater than one month's rent (Section 14)

Any prohibited clause included in a lease is void and unenforceable — but the rest of the lease remains valid.

Pet Clauses

PEI does not have a blanket prohibition on "no pets" clauses — landlords may include such clauses in a lease. However, the enforceability of specific pet restrictions may be subject to challenge at the Rental Office in certain circumstances. Consult with a local attorney if a pet-related dispute arises.

Lease Renewal

When a fixed-term lease ends, landlords and tenants should execute a new written agreement or a formal renewal addendum. Renewal presents an opportunity to clarify terms but does not automatically permit the landlord to reset the rent above the lawful amount (since PEI's rent controls run with the unit).

Subletting Tenants

Tenants in PEI may request to sublet or assign the tenancy. Landlords can establish restrictions on subletting in the lease, but they must not unreasonably withhold consent if the tenant has a legitimate reason. Any subletting or assignment should be documented in writing.

Best Practices for Landlords

• Always use the provincial standard lease form as a starting point
• Have all adult occupants sign the lease agreement
• Provide the tenant with a signed copy of the lease at the start of the tenancy
• Attach any property rules (pets, smoking, parking) as a signed Schedule to the main agreement
• Conduct and record a joint move-in inspection at the start of every tenancy

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How Landager Helps

Managing properties in Prince Edward Island requires navigating a unique regulatory environment overseen by the Island Regulatory and Appeals Commission (IRAC). With rent control tied directly to the unit rather than the tenant, precise historical tracking of rental rates is essential. Landager's comprehensive platform protects PEI landlords by automating the strict 3-month notice requirement for rent increases and ensuring forms are legally compliant. Furthermore, the platform securely manages security deposit tracking and trust account records, while facilitating the crucial 15-day return timeline to prevent disputes. By operating within the specific boundaries of the PEI Residential Tenancy Act, Landager provides a digital safety net that ensures your business remains fully compliant.