IRAC sets allowable rent increase for 2021

The Island Regulatory and Appeals Commission (IRAC) has announced that the maximum allowable rent increaseon P.E.I. is set at one per cent for next year.

IRAC will often allow different increases for heated and unheated units or mobile home sites, but this year the increase applies to all properties.

It is the smallest allowable increase since 2016, when no increase was allowed. Since then increases have been set between 1.3and 2.0 per cent.

The Office of Residential Rental Property received 48 submissions this year commenting on what next year's increase should be, 39 from tenants and nine from landlords.

Apart from submissions, IRAC says it takes into account the Consumer Price Index, furnace oil and electricity rates, and water and sewer rates when setting the rent increase.

Tenants must receive three months notice of a rent increase.

Landlords that want rent increases greater than the allowable amount must make an application to IRAC.

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