On April 8, 2023, significant revisions to the residential rental regulations in Prince Edward Island (P.E.I.) were implemented through the proclamation of the updated Residential Tenancy Act. These revisions, detailed in EC2023-269, introduce a range of updates and clarifications concerning the management of rental properties and the interactions between tenants and landlords.

The updated regulations provide clearer definitions and stipulations across several areas, which include:

• • • Maintenance and Management Fees: “Maintenance” refers to routine repairs, including those to plumbing and electrical systems, but excludes major repairs or replacements. The “management fee” is restricted to either the actual cost of management or 5% of the gross rental income from the previous year, whichever is lesser. “Rental income” encompasses both the rent and any additional revenue from property amenities, such as coin-operated laundry machines.
    • Non-Application of the Act: The Act does not apply to housing provided under the Child Protection Act or to families receiving support after experiencing domestic violence.
    • Interest Rate: For financial matters addressed by the Act, the prescribed interest rate is the Canada Pension Plan policy interest rate minus 2%.
    • Requests for Rent Increases: Landlords may request rent increases to achieve a reasonable return on their investment. However, increases may be reassessed during the first year of property acquisition to ensure fairness.
    • Capital Expenditures and Operating Costs: The regulations define “capital expenditures” as major repairs or replacements, while “operating costs” include regular operational expenses, excluding depreciation.
    • Reasonable Moving Expenses: Tenants are entitled to moving expenses equivalent to the lesser of the actual moving costs or one month’s rent. For mobile homes, the moving expenses are reimbursed in full.
    • Landlord’s Notice Requirements: Prior to issuing notices for property demolition, conversion, repairs, or renovations, landlords must complete and submit an approved form to the Director for review. Notices cannot be issued until the Director’s approval is secured.
    • Public Housing Bodies: The term “public housing body” refers to organizations such as the Prince Edward Island Housing Corporation or similar public housing authorities.

In summary, the updated Residential Tenancy Act incorporates specific definitions and provisions regarding maintenance, management fees, and financial aspects of rental agreements. It outlines the scope of the Act, details moving expenses, and sets forth guidelines for landlord notifications and public housing entities. These changes aim to refine the rental process and safeguard the interests of all parties involved.

Prince Edward Island (EC2023-269) April 8, 2023