2027 increase limits
- Maximum allowable: 2.1%
- Additional increase cap: 3% (5.1% total maximum)
- Notice period: 3 months minimum
- Form required: Form 8
Timing requirements
- Once every 12 months maximum
- 3 months notice before effective date
- Effective first of month typically
- Cannot increase between tenants without application
Maximum allowable rent increases
For 2027, the maximum Annual Allowable Rent Increase is 2.1% on all rental units, heated or unheated.
Additional rent increases cannot exceed 3% per calendar year.
How to increase rent
In order to be compliant with the new Residential Tenancy Act, you are required to give your tenant 3 months’ written notice by completing a Form 8 − Tenant Notice of Annual Allowable Rent Increase. The rent increase cannot be more than the maximum Allowable Annual Rent Increase set by the Director of Residential Tenancy.
You can only increase rent once in a 12-month period, even if a new tenant moves in, or you’ve completed renovations on the unit.
Increases above the allowable amount
Under the new legislation, additional rent increases are limited to 3% per calendar year.
To qualify for greater than allowable rent increases, you must complete a Form 9 − Landlord Application to Request Additional Rent Increase and submit it to the PEI Rental Office, as well as the tenant. Landlords must have approval from the Director in order to increase rent above the maximum allowable amount.
The PEI Rental Office will schedule a hearing to hear your case for an additional rent increase.
You will also need to submit a Form 10 − Landlord Statement of Income and Expenses and supporting documents.
You will then need to provide information such as:
- Rent ledger
- Mortgage expenses
- Utility expenses
- Maintenance and management fees
This information will be used as evidence during your hearing.
Increase success strategy
Professional landlords balance income needs with tenant retention. Small annual increases are typically better than large infrequent ones. Consider your tenant’s value, market conditions, and vacancy costs when deciding whether to implement the full allowable increase.
Document everything and follow procedures exactly to avoid disputes.