Prince Edward Island Landlord-Tenant Laws: Complete Guide for Property Owners

Prince Edward Island's landlord-tenant framework is governed by the Residential Tenancy Act, which underwent a significant overhaul coming into effect in 2023. The province enforces rent caps, mandatory security deposit rules, and structured eviction procedures — all administered by the Island Regulatory and Appeals Commission (IRAC) through the provincial Rental Office. Whether you own a single rental unit in Charlottetown or manage multiple properties across the Island, understanding these rules is essential for operating a compliant rental business.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Landlord-tenant laws change frequently. Always consult a licensed attorney in Prince Edward Island for advice specific to your situation. Information last verified: March 2026.

Key PEI Rental Laws at a Glance

Security Deposits

In PEI, landlords may collect a security deposit of up to one month's rent (or one week's rent for weekly tenancy agreements). Deposits must be held in an interest-bearing account at a PEI financial institution, and landlords with three or more units must use a dedicated trust account.

Upon the end of the tenancy, landlords must either return the deposit with accrued interest within 10 days of move-out, or file an application with the Rental Office within 15 days to claim deductions. Failure to do so may result in forfeiture of the claim and a potential order to pay the tenant double the deposit amount.

For more detail, see our Security Deposits guide.

Rent Increases

PEI maintains a strict rent control regime. For 2024, the maximum allowable rent increase was 3%. Landlords may apply to the Director of Residential Tenancy for approval of an additional increase of up to another 3% (for a total potential maximum of 6%), but this requires filing a formal application and notifying the tenant.

Importantly, rent controls in PEI run with the unit, not the tenant. This means landlords cannot reset the rent to market rate simply because a new tenant moves in.

Landlords must provide at least 3 months' written notice on the approved provincial form before any rent increase takes effect. Tenants who receive a rent increase notice have the option to treat it as a notice to terminate and vacate with at least one month's written notice prior to the effective date of the increase.

For more detail, see our Rent Increases guide.

Eviction Procedures

PEI landlords cannot evict a tenant without a legally valid reason. All eviction notices must be in writing and provided to the tenant directly. Key notice types include:

Non-Payment of Rent

• A Notice of Termination for Unpaid Rent may be issued after rent is overdue
• The effective termination date cannot be sooner than 20 days after the tenant receives the notice

Substantial Breach

• For other lease violations, a 14-day notice to terminate may be given for a substantial breach
• For less serious violations with prior remedy opportunity, a 30-day notice may apply

Renovictions

• Landlords must obtain Director of Residential Tenancy approval before serving an eviction notice for extensive renovations
• Once approved, landlords must provide at least 6 months' written notice
• Tenants have right of first refusal to return once renovations are complete
• Landlords must pay one month's compensatory rent plus reasonable moving expenses

Tenants may dispute any eviction notice by filing an application with the Rental Office.

For more detail, see our Eviction Process guide.

Required Disclosures

PEI landlords must provide tenants with key information at or before the start of the tenancy, including:

1. A written tenancy agreement (the province offers a standard lease form)
2. Disclosure of the rental unit address and parties' contact information
3. Details on the security deposit, how it is held, and applicable interest rate
4. Information about what services and facilities are included
5. For units built before 1960: awareness of potential lead paint risks (best practice)

For more detail, see our Required Disclosures guide.

Maintenance and Habitability

PEI landlords are legally required to maintain rental units in a good state of repair, fit for habitation, and compliant with all applicable health and safety standards. Key obligations include:

• Maintaining structural integrity of the building
• Ensuring functioning heating, plumbing, and electrical systems
• Providing working smoke and carbon monoxide detectors
• Maintaining common areas in a clean and safe condition
• Making timely repairs when alerted by a tenant

Tenants who experience landlord failure to maintain the unit may apply to the Rental Office for a rent reduction or an order to complete repairs.

For more detail, see our Maintenance Obligations guide.

Late Fees

The Residential Tenancy Act does not set a specific statutory dollar cap on late fees, but any late fee charged must be reasonable and specifically set out in the tenancy agreement. Excessive or punitive late fees may be challenged as unenforceable at the Rental Office.

For more detail, see our Late Fees guide.

Lease Requirements

All tenancy agreements in PEI should be in writing. The provincial government provides a standard residential lease form that landlords are encouraged to use. Any agreement must clearly state the rent amount, due date, deposit details, services included, and the respective responsibilities of both parties.

For more detail, see our Lease Requirements guide.

The Rental Office (IRAC)

Prince Edward Island's rental disputes are administered by the Rental Office, a division of the Island Regulatory and Appeals Commission (IRAC). Both landlords and tenants can file applications for a broad range of matters, including security deposit claims, rent increase disputes, eviction orders, and maintenance complaints. Decisions from the Rental Office may be appealed to the IRAC Board.

Staying Compliant with Landager

Managing compliance across PEI's regulatory framework can be complex, especially with annual rent cap changes and unit-tied rent control rules. Landager helps Island landlords track compliance obligations, manage lease terms, and stay updated when regulations change.

Explore more Prince Edward Island compliance topics:

• Security Deposits
• Eviction Process
• Required Disclosures
• Rent Increases
• Lease Requirements
• Maintenance Obligations
• Late Fees