The Prince Edward Island Regulatory and Appeals Commission has set the maximum allowable annual rent increase at one per cent effective Jan. 1.
The one-per-cent increase can be applied to heated and unheated premises, as well as mobile homes located in a mobile home park, IRAC said in a news release issued Tuesday.
Each year, the director of the Office of Residential Rental Property seeks written submissions on the allowable annual rent increase from tenants, landlords, and members of the public. This year, 46 submissions were received from 37 landlords and nine tenants.
Based on inflation
The allowable rent increase is based on the 2021 Consumer Price Index, which was reviewed from July 2020 to July 2021.
Components of the CPI considered by the commission include the cost of shelter, rented accommodations, owned accommodations, and maintenance and repairs. Other costs considered include furnace oil, electricity, water and sewer rates, insurance, property taxes, maintenance costs, rates for waste collection, and interest rates.
Under the Rental of Residential Property Act, Prince Edward Island landlords are permitted to raise the rent once every 12 months, though they are required to provide tenants with three months' written notice on an approved form before the rent increase can take effect.
Rent increases are attached to the unit, and apply whether there is a new tenant or not.
If a tenant rents a unit beginning September 1, 2021, the date of the first allowable increase is September 1, 2022, provided the tenant received three months' written notice on an approved form.