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Most rent hikes on P.E.I. would be capped at 3% under new Residential Tenancy Act

Long-awaited changes also include longer notice period for ‘renovictions’

Residential rent increases will be capped at three per cent per year under the new Residential Tenancy Act tabled in the P.E.I. Legislature on Tuesday.

Under the new act — which has been in the works since 2019 and replaces the 30-year-old Rental of Residential Properties Act — any landlord who applies for a larger increase will also have that capped at three per cent, meaning the greatest allowable rent hike in one year would be six per cent.

Landlords who do not charge the maximum allowable increase each year can increase the rent accordingly if the existing tenant leaves voluntarily.

In September, IRAC had set maximum allowable rent increases — 5.2 per cent for unheated rental units or those heated with sources other than furnace oil, and 10.8 per cent for units that are heated with furnace oil and have heat included in the rent — to be effective Jan. 1.

IRAC’s rental caps drew criticism and outrage from many Islanders including the Opposition, tenants, and affordable housing advocates.

On Nov. 3, a bill introduced by Housing Minister Matt MacKay was passed in the legislature, setting rental increases for 2023 at zero per cent, meaning IRAC’s proposed rental increases would no longer apply. The province said that freeze will remain in place if and when the new tenancy act passes…[Read More]