Kaza · tenancy rules
Prince Edward Island
The deposit maximum, who holds it, the rent-increase cap, the notice period and the late-fee rule in Prince Edward Island, each quoted from the regulator's own published material.
Last changed 2024-01-01. Kaza re-verifies every rule by 2026-12-31, and the build fails if it is overdue.
How much can a landlord charge for a security deposit in Prince Edward Island?
In Prince Edward Island the security deposit on a monthly tenancy is capped at one month's rent. Other tenancy types differ: weekly: one week's rent. The cap is set by statute and a tenancy agreement cannot raise it.
“A landlord cannot accept a security deposit that is greater than the rent for the rental unit. In the case of a tenancy agreement where the rent is paid weekly, it would be the equivalent of one week's rent; and in the case of a tenancy agreement where the rent is paid monthly, it would be the equivalent of one month's rent. The landlord must deposit the money in an interest-bearing account at a financial institution located in the province authorized to accept deposits. This must be done within two banking days from when the landlord received the security deposit. If the landlord has three or more rental units, the interest-bearing account must be a trust account used exclusively for security deposits. When a landlord returns the security deposit to a tenant, they shall include the full amount of the deposit, plus any interest that has accrued over the time that the landlord has held the security deposit. A landlord has 15 days from when a tenancy ends to make a determination regarding the security deposit.”
Who holds the security deposit in Prince Edward Island?
It is held by the landlord, in a trust account separate from their own money. It must be deposited into an interest-bearing account at a financial institution in the province within two BANKING days of receipt (a trust account used exclusively for security deposits, if the landlord has three or more rental units). Kaza does not compute that deadline, because banking days depend on weekends and statutory holidays Interest is payable to the tenant.
“A landlord cannot accept a security deposit that is greater than the rent for the rental unit. In the case of a tenancy agreement where the rent is paid weekly, it would be the equivalent of one week's rent; and in the case of a tenancy agreement where the rent is paid monthly, it would be the equivalent of one month's rent. The landlord must deposit the money in an interest-bearing account at a financial institution located in the province authorized to accept deposits. This must be done within two banking days from when the landlord received the security deposit. If the landlord has three or more rental units, the interest-bearing account must be a trust account used exclusively for security deposits. When a landlord returns the security deposit to a tenant, they shall include the full amount of the deposit, plus any interest that has accrued over the time that the landlord has held the security deposit. A landlord has 15 days from when a tenancy ends to make a determination regarding the security deposit.”
When must a deposit be returned in Prince Edward Island?
Within 15 days of the tenancy ending, with the interest owed on it.
“A landlord cannot accept a security deposit that is greater than the rent for the rental unit. In the case of a tenancy agreement where the rent is paid weekly, it would be the equivalent of one week's rent; and in the case of a tenancy agreement where the rent is paid monthly, it would be the equivalent of one month's rent. The landlord must deposit the money in an interest-bearing account at a financial institution located in the province authorized to accept deposits. This must be done within two banking days from when the landlord received the security deposit. If the landlord has three or more rental units, the interest-bearing account must be a trust account used exclusively for security deposits. When a landlord returns the security deposit to a tenant, they shall include the full amount of the deposit, plus any interest that has accrued over the time that the landlord has held the security deposit. A landlord has 15 days from when a tenancy ends to make a determination regarding the security deposit.”
How much can a landlord raise the rent in Prince Edward Island?
Rent may be increased by no more than 3% and no more than once every 12 months.
“A cap of three percent on annual allowable rent increases after December 31, 2023, is now in effect. Landlords are permitted to raise the rent once every 12 months and are required to provide tenants with three months' written notice on an approved form before the rent increase can take effect.”
How much notice does a rent increase need in Prince Edward Island?
At least 3 months' written notice before the new rent starts. A notice served late does not take effect early: the date moves, not the rule.
“A cap of three percent on annual allowable rent increases after December 31, 2023, is now in effect. Landlords are permitted to raise the rent once every 12 months and are required to provide tenants with three months' written notice on an approved form before the rent increase can take effect.”
Can a landlord charge a late fee in Prince Edward Island?
A late payment fee is not lawful in Prince Edward Island. PEI's Act lists the fees a landlord may charge during a tenancy and a late payment fee is not among them. What IS chargeable when a cheque is returned: the bank's own charge, plus an administration fee of no more than $25.
“20(2) A landlord may charge a fee for (a) the actual cost of replacing keys or other access devices; (b) the actual cost of additional keys or other access devices requested by the tenant; (c) a service fee charged by a financial institution to the landlord for the return of a tenant's cheque; (d) an administration fee of not more than $25 for the return of a tenant's cheque by a financial institution; (e) a fee for services or facilities requested by the tenant, if those services or facilities are not required to be provided under the tenancy agreement; and (f) a service prescribed in the regulations.”
This is not legal advice
Kaza applies published provincial tenancy rules and shows the source it used, and it refuses to answer when a rule is unverified or overdue for review rather than guessing. It does not know the facts of your tenancy, any order made about it, or any agreement between the parties. For advice on a specific situation, speak to the tenancy regulator for the province or to a lawyer.
These same rules are enforced inside the product: Kaza refuses to raise an unlawful charge or serve an unlawful notice, rather than warning about one. How the compliance engine works.