PEI Renoviction Rules: How Renovation and Demolition Evictions Work

Two Grounds, One Form, Extra Hurdles

Section 64 of the Residential Tenancy Act covers two related but distinct grounds for ending a tenancy: demolition (or conversion to non-residential use) and major renovations requiring the unit to be vacant. Both use Form 4B and require 6 months' notice (12 months for a tenant who owns a mobile home). Compensation applies to both; for renovations, the formula depends on whether the tenant exercises the right of first refusal. Renovation evictions carry an additional prerequisite that demolitions don't.

The Form 6 Requirement for Renovations

Before you can serve Form 4B for renovations, you must apply to the Director of Residential Tenancy using Form 6 (Application for Approval for Renovations/Repairs). The Director must approve the application before the landlord gives a renovation notice. The work must be so extensive that the unit needs to be vacant.

This isn't a rubber stamp. You'll need to show the scope of work — typically with building permits and contractor documentation — and the Director decides whether vacancy is truly necessary. Only after receiving the Form 6 approval can you serve Form 4B.

A notice given before the required approval does not comply with Section 64. The Director can determine its validity and may set it aside.

For demolitions or conversions, Form 6 isn't required, but you must obtain all permits and approvals required by law before serving notice.

Notice Period

Both grounds require a minimum 6-month notice on Form 4B (12 months for a tenant who owns a mobile home). For renovations, count six months from the later of the Director's approval date or the date the notice is given. The effective date must fall on the day before rent is payable. With mail service adding 3 deemed days, plan your timeline carefully to avoid landing short.

Compensation

You must provide compensation on or before the vacate date, or offer another rental unit acceptable to the tenant where the Act allows:

For demolition or conversion: One month's rent plus reasonable moving expenses, or another acceptable rental unit. Reasonable moving expenses are capped at the lesser of actual moving costs or one month's rent.

For renovations: If the tenant does not exercise the right of first refusal, one month's rent plus reasonable moving expenses, or another acceptable rental unit. If the tenant exercises that right, the rent portion is the lesser of one month's rent or rent for the repair period, plus reasonable moving expenses.

Tenant Right of First Refusal

Section 68 gives tenants evicted for renovations a statutory right to occupy the unit as a tenant when the work is complete. To exercise it, the tenant must notify you in writing before vacating and tell you in writing if their address changes. The Act does not set a separate one-month notice period for the landlord once the work is complete.

The rent after they return must comply with provincial rent-control rules — you can't renovate a $1,200 unit and re-let it to the returning tenant at $1,800.

Bad-Faith Consequences Under Section 65

If you terminate for renovations but don't actually do the work — or do minimal cosmetic updates that didn't require vacancy — the former tenant can apply under Section 65 for a bad-faith determination. The Director may order payment of all or part of increased rent for a one-year period after vacating, reasonable out-of-pocket moving, storage, and similar expenses, a rent abatement, an administrative monetary penalty up to $10,000, or another appropriate order. The former tenant must apply within one year after vacating. Section 106 separately provides for a fine of up to $25,000 on summary conviction for a contravention of the Act.

The public scrutiny around "renovictions" in PEI has made Rental Officers attentive to these cases. Having your Form 6 approval, building permits, and contractor agreements in your file before you serve notice is the practical defence.

The Ending a Tenancy in PEI guide covers the full Section 64 process, including the Form 6 application sequence, compensation tracking, and evidence templates for defending against bad-faith claims.

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