How Much Can a Landlord Increase Rent in PEI?

The Short Answer

For 2026: up to 2.0% of the current lawful rent, once per year. Give at least three months' notice for a monthly or fixed-term tenancy, or three weeks for a week-to-week tenancy.

For 2027: up to 2.1%, same rules.

The Director of Residential Tenancy publishes the allowable percentage each year, usually in September. The absolute statutory ceiling is 3.0% — even if inflation runs higher, the ordinary guideline cannot exceed that cap.

How Often

Once every 12 months. Section 48(1) of the Residential Tenancy Act prohibits an increase for at least 12 months after the last lawful increase or, if rent has not previously been increased, after the date rent was first payable. That clock runs per unit, not per tenant. Signing a new lease, renewing the current one, or replacing the tenant does not restart it.

The Calculation

Multiply the current lawful monthly rent by the allowable percentage. The result must be exact to the cent — rounding up to the nearest dollar is an illegal increase.

For a unit at $1,350/month in 2026:

• $1,350.00 × 0.020 = $27.00
• Maximum new rent: $1,377.00

If heat or other utilities are included, the percentage applies to the full amount. You cannot split out the utility component and apply a different rate.

Can You Go Higher?

Yes, but only through the formal above-guideline application process. File Form 9 and Form 10 with the Residential Tenancy Office, document your operating expenses over the preceding three years, serve the tenant within 10 days, and attend a hearing. The Director can approve an additional increase of up to 3.0% per year above the guideline — meaning a combined maximum of 5.0% for 2026 or 5.1% for 2027.

The increase does not take effect until the Director issues a formal order. You cannot collect it in advance or apply it retroactively.

What You Cannot Do

• Charge more than the guideline without a Director's order, even with the tenant's written consent
• Reset the rent to market rate between tenants (PEI uses unit-based rent control — the cap follows the property, not the person)
• Increase rent more than once in a 12-month period
• Round the calculation up to a convenient figure
• Use a generic letter instead of the prescribed Form 8

The allowable guideline applies equally to heated premises, unheated premises, and mobile home sites. There is no exemption for new construction or recently purchased properties.

For the complete compliance sequence — calculation worksheets, service timelines, and dispute preparation — see the Prince Edward Island Rent Increase Guide.

See more Prince Edward Island guides →