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The Private Members Bill (PMB) consultation draft entitled “AN ACT TO AMEND THE RESIDENTIAL TENANCY ACT (NO. 3)” has been prepared. I plan to table this PMB in the Fall 2024 sitting of the PEI legislature. You can view a PDF of the bill here, a MS-Word version of the bill here, or see the text below. You can view the current Residential Tenancy Act here.
AN ACT TO AMEND THE RESIDENTIAL TENANCY ACT (NO. 3)
BE IT ENACTED by the Lieutenant Governor and the Legislative Assembly of the Province of Prince Edward Island as follows:
1. The Residential Tenancy Act R.S.P.E.I. 1988 Cap.R-13.11, is amended by the addition of the following after section 50:
50.1 Rent increase where apartment is vacant
(1) Notwithstanding sections 48 to 50, where a rental unit is vacant and not subject to a tenancy agreement, the landlord may increase the rent payable for that unit.
Approval of Director not required
(2) An increase provided for by subsection (1) does not require the approval of the Director.EXPLANATORY NOTE
SECTION 1 amends the Residential Tenancy Act to add a new section 50.1 that provides that notwithstanding sections 48 to 50 of the Act, which govern rent increases, where a rental unit is vacant and not subject to a tenancy agreement, the landlord may increase the rent payable for that unit, without the need for the approval of the Director.
Feedback – Consultation Draft of Bill
Please submit feedback using the following embedded form, or click here to open the feedback form in a new window. Thank you in advance for your input.
HISTORY
- September 10, 2024: Private Members Bill (PMB) consultation draft released by Brad Trivers to amend the RTA to allow landlords to increase the rent on vacant rental units.
- September 4, 2024: RRAP presents to the Standing Committee on Health and Social Development with their request for RTA amendments (see RRAP presentation here). The first of the RRAP “3 Critical Amendments” is “Housing providers must be able to set rental rates on voluntary tenant turnover. (Rent is tied to the unit, and not the tenant)“.
- July 2, 2024: PEI Fight for Affordable Housing send letter to Standing Committee on Health and Social Development with top areas of concern relative to a review of the Residential Tenancy Act. The second of six concerns was:
- “Vacancy Control & the Need for a Rent Registry – We are concerned about statements by the Landlords’ Association that they would like the Act to provide a legal way of increasing rents when new tenants move in. Affordability is already a serious issue for tenants and will become disastrous, should vacancy be allowed to be a factor in
determining rent increases. We have heard from tenants who, upon moving into a new apartment, have been charged higher rents than allowable. We continue to advocate for a public rent registry.“
- “Vacancy Control & the Need for a Rent Registry – We are concerned about statements by the Landlords’ Association that they would like the Act to provide a legal way of increasing rents when new tenants move in. Affordability is already a serious issue for tenants and will become disastrous, should vacancy be allowed to be a factor in
- June 3, 2024: Residential Rental Association of PEI (RRAP) sends letter to Standing Committee on Health and Social Development with key issues being faced by Island housing providers. The top two issues were:
- “1. Housing providers must be able to set rental rates that run with the tenant, based on the rental agreement, and not with the rental unit.
- 2. Housing providers must be able to set reasonable rental rates in existing vacant units.“
- May 2024: [CBC news article] After one year in place, both tenant and landlord groups call for changes to the RTA. A key priority of landlord groups is the ability to increase rent on vacant rental units: “The landlords say they want the freedom to increase rents to any level after tenants have left a unit, before the new ones move in. They say P.E.I. is the only province in Canada that doesn’t allow that, since the maximum rent increases in this province are tied to the property, not to the tenant.“
- April 2023: Rob Lantz named new Minister of Housing, Land & Communities. New RTA proclaimed.
- November 3, 2022: New Residential Tenancy Act (RTA) passed in legislative assembly without the ability for landlords to reset rent on vacant rental units. It also included a zero percent rental increase for the current year, contrary to the IRAC recommendation for 10.8% (heated) and 5.2% (unheated). See [CBC news article from November 15, 2022]: “the government considered about 250 written submissions, as well as consultations with the public and landlord and tenants’ rights groups“, and “A group representing Island landlords expressed frustration, saying they had not been consulted and a zero per cent rental increase cap would be unsustainable given P.E.I.’s record-breaking rate of inflation. The landlords said the cap might even force some people to sell their rental units altogether.“.
- July 2022: Island Regulatory and Appeals Commission (IRAC) order LR22-54 published establishing the allowable rent increase for 2023 at 10.8% for rentals where heat included and furnace oil or petroleum source used, and 5.2% for rentals where heat not included. View table of IRAC Allowable Rent Increases since 1989 here.
- July 2022: Brad Trivers shuffled out of cabinet and Matthew MacKay becomes Minister of Social Development & Housing.
- April 2020 through July 2022: Clear feedback from landlords during consultations that the ability to reset rent on vacant rental units is a top priority in a new Residential Tenancy Act.
- February 2021: Cabinet shuffle, and Brad Trivers becomes Minister of Social Development & Housing taking the responsibility for the Rental of Residential Properties Act and new Residential Tenancy Act with him. Government policy expertise is developed in-house for residential rentals, as part of the Housing portfolio.
- March 2020: The COVID pandemic hits. This significantly impacts the ability for in-person public consultations.
- March 2020: [Saltwire Network news article] Islanders are encouraged to provide feedback by the end of March through written submissions by March 20 or through an online survey from March 3 to 20. Public consultation sessions are scheduled in Alberton, Summerside, Montague, and Charlottetown.
- Winter 2020: Consultation draft of new Residential Tenancy Act completed.
- Summer 2019: Third party lawyer hired to draft a replacement for the thirty-year-old Rental of Residential Properties Act.
- May 2019: Brad Trivers appointed to cabinet as Minister of Education & Lifelong Learning – responsible for IRAC and therefore the Rental of Residential Properties Act. This is done purposefully to ensure no conflict of interest with IRAC, and a hands-off policy is encouraged for Department of Education & Lifelong Learning. No policy expertise exists in-house for the Rental of Residential Properties Act, and Clerk of Executive Council manages legislation through relationship with IRAC.
