Prince Edward Island Lease Agreement Guide 2026: RTA, IRAC, Deposits, 3% Guideline
Prince Edward Island has the most active rent regulation in Atlantic Canada — the Island Regulatory and Appeals Commission (IRAC) publishes an annual rent-increase guideline (3.0% for 2026), regulates above-guideline increases, and adjudicates tenancy disputes. The province has a Form 1 Standard Rental Agreement and the Residential Tenancy Act, R.S.P.E.I. 1988.
This guide covers everything: deposits, the IRAC process, rent rules, and what every PEI lease must include. Sourced from Residential Tenancy Act, R.S.P.E.I. 1988, c. R-13.11 and IRAC's current Rental Office guidance.
Key PEI rules
Security deposit
Maximum one month's rent. Must be held in trust by the landlord, returned within 10 days of the end of the tenancy with interest at the rate set by IRAC, unless the landlord applies to retain part.
Rent guideline — 3.0% for 2026
IRAC sets the annual guideline. Increases above the guideline require IRAC approval (filed on the appropriate IRAC form, with supporting cost documentation). Notice:
- Three months' written notice on the prescribed IRAC form
- Once every 12 months
- Above-guideline requires IRAC approval before being charged
Term and ending
Fixed-term leases end on the date specified. Month-to-month requires one full rental month's notice from the tenant. Landlords use IRAC forms for grounds the Act permits.
Entry
24 hours' written notice between 8 a.m. and 9 p.m. Emergency entry allowed.
Unenforceable clauses
- "Security deposit equals two months' rent" — capped at one month.
- "Annual rent increase above IRAC guideline" — requires IRAC approval.
- "Tenant pays all repairs" — Statutory Condition 1 (landlord's repair obligation) is non-waivable.
- "No pets ever" — service animals protected under PEI Human Rights Act.
IRAC — the Rental Office
IRAC's Rental Office handles all PEI residential disputes. Process is administrative; decisions can be appealed to the IRAC Commission, then to the Court of Appeal on questions of law.
Electronic signatures
Valid under the Electronic Commerce Act, R.S.P.E.I. 1988.
NestBord's PEI lease generator builds a Form 1-style lease with the right deposit and guideline disclosures.
Frequently asked questions
How much can I charge as a deposit?
One month's rent maximum. Held in trust, returned with interest.
What's the 2026 rent guideline?
3.0%. Increases above require IRAC approval.
How much notice for a rent increase?
3 months' written notice, once per 12 months.
How do I apply for an above-guideline increase?
File the IRAC application with documentation of operating cost increases or capital expenditures. IRAC will review and issue a written decision.
How long to return the deposit?
10 days from end of tenancy + tenant forwarding address. Apply to IRAC to retain otherwise.
Can I refuse pets?
Yes. Service animals must be allowed.
How do I evict for non-payment?
Serve the prescribed IRAC notice. The tenant can remedy. If not, apply to IRAC for an order.
Can I end the lease at the fixed-term end date?
Yes, if proper notice has been given. Otherwise the tenancy converts to month-to-month.
Disclaimer
General information, not legal advice. Consult a PEI paralegal or IRAC for specific situations. References accurate as of 2026.
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