- Updated to: October 16, 2019 -
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RENTAL OF RESIDENTIAL PROPERTY ACT
2. This Act applies to rental agreements existing on the effective date or entered into or renewed on or after that date, notwithstanding any agreement, waiver or statement to the contrary. 1988,c.58,s.2.
4. (1) Subject to the Civil Service Act R.S.P.E.I. 1988, Cap. C-8, the Commission may appoint a person as the Director of Residential Rental Property.
(a) providing information to the public to promote understanding of rights and responsibilities under this Act;
(e) entering and inspecting residential premises, after serving an inspection order, for the purpose of carrying out his powers or duties under this Act or the regulations.
(3) A lessor or lessee served with an inspection order pursuant to clause (2)(e) shall forthwith permit the Director entry to the residential premises in question.
(4) Compliance with an inspection order may be enforced by injunction upon application by the Director to the court.
Powers of commissioner
(5) The Director, for the purpose of any hearing, has the powers of a commissioner under the Public Inquiries Act R.S.P.E.I. 1988, Cap. P-31.
(6) The Director may delegate any of his functions under this Act, with the exception of those functions excluded by regulation.
TERMS OF RENTAL AGREEMENT NATURE OF RELATIONSHIP
5. (1) The relationship of lessor and lessee is one of contract and a rental agreement does not confer on a lessee an interest in land.
(3) The doctrine of frustration of contract applies to rental agreements. 1988,c.58,s.5.
6. Notwithstanding any agreement, waiver, declaration or other statement to the contrary, where the relationship of lessor and lessee exists in respect of residential premises by virtue of this Act or otherwise, there shall be deemed to be a rental agreement between the lessor and lessee, with the following conditions applying as between the lessor and lessee as statutory conditions governing the residential premises:
1. Condition of Premises
The lessor shall keep the premises in a good state of repair and fit for habitation during the tenancy and shall comply with any enactment respecting standards of health, safety or housing notwithstanding any state of non-repair that may have existed at the time the agreement was entered into.
2. Services
Where the lessor provides or pays for a service or facility to the lessee that is reasonably related to the lessee's continued use and enjoyment of the premises, such as heat, water, electric power, gas, appliances, garbage collection, sewers or elevators, the lessor shall not discontinue providing or paying for that service to the lessee without permission from the Director.
3. Good Behaviour
The lessee and any person admitted to the premises by the lessee shall conduct themselves in such a manner as not to interfere with the possession, occupancy or quiet enjoyment of other lessees.
4. Obligation of the Lessee
The lessee shall be responsible for the ordinary cleanliness of the interior of the premises and for the repair of damage caused by any wilful or negligent act of the lessee or of any person whom the lessee permits on the premises, but not for damage caused by normal wear and tear.
(a) a rental agreement in respect of residential premises that are developed under the National Housing Act R.S.C. 1985, Chap. N-11 or the Housing Corporation Act R.S.P.E.I. 1988, Cap. H-11 and are administered by or for the Government of Canada, the Government of the province, or an agency thereof;
6. Entry of Premises
Except in the case of an emergency, the lessor shall not enter the premises without the consent of the lessee unless the lessor has served written notice stating the date and time of the entry to the lessee at least twenty-four hours in advance of the entry and the time stated is between the hours of 9 a.m. and 9 p.m.
7. Entry Doors
Except by mutual consent, the lessor or the lessee shall not during occupancy under the rental agreement alter or cause to be altered the lock or locking system on any door that gives entry to the premises.
8. Late Payment Penalty
Where the rental agreement contains provision for a monetary penalty for late payment of rent, the monetary penalty shall not exceed one per cent per month of the monthly rent.
9. Quiet Enjoyment
The lessee shall have quiet enjoyment of the residential premises, and shall not be barred from free access to them during the term of the rental agreement.
STATUTORY CONDITIONS RESPECTING MOBILE HOMES AND SITES
7. In addition to the statutory conditions set out in section 6, the following statutory conditions apply in respect of an agreement to rent a mobile home site or a mobile home:
1. Other than withholding, on reasonable grounds, his consent to a subletting of the mobile home site, the lessor shall not restrict in any way the right of a lessee of a mobile home site from selling, renting or otherwise parting with the possession of a mobile home owned by the lessee.
2. The lessor shall not receive any compensation or benefit from any negotiations of the lessee to trade, sell, rent or otherwise part with possession of a mobile home situate on that site, unless provided for in a separate written agency agreement that is entered into by the lessee after the lessee has entered into the rental agreement and has moved onto the site.
3.(1) The lessor of a mobile home site shall not require a lessee to pay a fee where the lessee is moving a mobile home to or from a site.
(2) Subsection (1) does not preclude a lessor from requiring a lessee to pay any reasonable expenses or damages which the lessor has actually incurred as a result of the moving or removing.
4.(1) Except as provided in this condition, the lessor shall not restrict in any way the right of the lessee to purchase goods or services from the person of the lessee's choice.
5. The lessor is responsible for compliance with any municipal bylaws or other enactment in respect of the common areas of the mobile home park and the services provided by the lessor to the lessee in the mobile home park.
ENFORCEMENT OF STATUTORY OR OTHER CONDITIONS
8. Where a lessor or lessee fails to comply with a statutory condition or any other condition or covenant of a rental agreement, a person may make written application to the Director indicating the condition or covenant alleged to have been contravened and seeking a remedy, and the Director shall investigate the matter and may
Filing of order in Supreme Court
8.1 (1) Where the Director has made an order and no appeal has been taken within the time specified in subsection 25(1), the lessor or lessee may file the order in the court.
Effect of filing
STANDARD FORM OF RENTAL AGREEMENT
(2) A lessor and lessee who enter into a written rental agreement or renew a written rental agreement and who do not sign the standard form are deemed to have done so and all the provisions of this Act and the standard form apply.
(3) A lessor and lessee who have an oral rental agreement and do not sign a standard form are deemed to have done so and all the provisions of this Act and the standard form apply.
Additional terms of rental agreement
(4) In addition to the statutory conditions, a lessor and lessee may provide in a rental agreement for other benefits and obligations that do not conflict with this Act or the provisions of the standard form.
(6) Any alteration or deletion from provisions the standard form is required to contain is void.
(7) The standard form prescribed under subsection (1) shall include
Maximum security deposit
10. (1) The lessor may, upon entering into a rental agreement, request from a lessee a security deposit not exceeding
(2) Subject to subsection (5), a security deposit or the proceeds thereof shall be held in trust by the lessor and, if in money, shall be deposited in a trust account at a chartered bank, trust company or credit union within the province.
Rate of interest
(3) The lessor shall credit interest to the lessee on the full amount or value of the security deposit
(d) for each year thereafter, at the rate of interest payable on provincial deposit receipts on the first business day of each year, less two per cent,
Return of security deposit
(4) Subject to subsection (5), the security deposit, together with the interest set out in subsection (3) shall be returned to the lessee within ten days of the date on which the lessee delivers up possession of the residential premises.
Balance to be returned
Application for determination by Director
(8) Where no application is made by the lessee pursuant to subsection (7), the lessor may retain the security deposit or such portion thereof as claimed in his notice.
(10) The Director shall investigate all applications made pursuant to subsection (7) and make such determination with respect to them in such manner as he deems appropriate and just.
TERMINATION OF RENTAL AGREEMENT
NOTICE BY LESSEE
11. (1) A lessee may terminate a rental agreement by serving on the lessor a notice of termination which complies with section 18.
(b) service pursuant to clause (a), terminates the rental agreement as of the last day of the term.
(2.1) Where premises are let by rental agreement from month to month or week to week,
(b) service pursuant to clause (a) terminates the rental agreement on the day preceding the day that would otherwise be the next rental payment due date following the date referred to in clause (a).
GROUNDS FOR TERMINATION BY LESSOR
Termination by lessor
Persistent late payment
(3) Where a lessee is persistently or habitually late in the payment of rent the lessor may apply to the Director for such order, including termination of the rental agreement as the Director considers just.
Grounds for termination
14. (1) The lessor may also serve a notice of termination upon the lessee where
(c) the lessee has failed to give, within thirty days after the date he entered into a rental agreement, the security deposit requested pursuant to section 10;
(i) the rental agreement is for a fixed term with an option to renew and the lessee has not exercised the option.
(2) Subject to subsection (3), a notice of termination pursuant to subsection (1) shall
(a) in the case of a month to month or fixed term rental agreement, be served not less than one month before the date on which it is to be effective;
(b) in the case of a week to week rental agreement, be served not less than one week before the date on which it is to be effective.
Application for early termination
(4) An application made by a lessor pursuant to subsection (3) shall be heard at the same time as any application made by the lessee pursuant to subsection 16(1).
Personal use, renovations, etc.
15. (1) Where the lessor in good faith seeks to
Notice of termination where purchaser seeks vacant possession
the lessor may serve the lessee with a notice of termination to be effective not less than two months after it is served and the notice shall be accompanied by a copy of the affidavit referred to in clause (c).
Mobile home sites
(2) Notwithstanding subsection (1), where a lessor serves a notice of termination under this section respecting a mobile home site, other than where the lessee is renting a mobile home and the mobile home site under a single rental agreement, the period of notice shall not be less than six months.
Early termination by lessee
(3) Where a lessor serves a lessee notice of termination under this section, the lessee may, at any time during the period of notice
(b) pay the lessor, on the date he gives notice of termination under clause (a), the proportionate amount of rent due up to the date the earlier termination is specified to be effective, or, where the rent has been paid in advance, claim and receive from the lessor reimbursement of that proportionate amount. 1988,c.58,s.15; 1990,c.53,s.5.
16. (1) A lessee who has received notice of termination for any of the reasons set out in section 13 or 14 may apply to the Director for an order setting aside the notice.
(1.1) A lessee who has received notice of termination for any of the reasons set out in section 15 may apply to the Director for an order setting aside the notice.
(3) Where the lessee does not bring an application to set aside the notice, he shall be deemed to have accepted the termination on the effective date of the notice.
17. (1) Except as provided in subsection (2) a fixed term rental agreement which has not been terminated pursuant to section 11, 13, 14 or 15 shall be deemed upon its expiration to be converted to a month to month rental agreement. 1988,c.58,s.17; 1998,c.100,s.3.
18. (1) A lessor and lessee shall give notice to terminate in writing in the form prescribed by regulation.
19. (1) A lessor is entitled to compensation for the use and occupation of premises after the rental agreement has been terminated by notice.
20. Sections 21 and 23 do not apply to
(c) co-operative housing where the lessee is a member of the housing co-operative. 1988,c.58,s.20.
Notice of rent increase
(b) be served on the lessee
(ii) in the case of a monthly agreement, at least three months before the date on which it is to take effect. 1988,c.58,s.22.
23. (1) Except as provided in subsection (3) and notwithstanding the terms of any rental agreement, the amount of any rent increase between January 1 and December 31 of any year shall not exceed the percentage amount which is established by an order of the Commission and published in the Gazette.
(3) Where the lessor seeks a rent increase greater than the amount permitted by subsection (1), the lessor shall apply to the Director for approval of the proposed increase not later than ten days after notifying the lessee.
Application for review by lessee
(5) An application pursuant to subsection (3) or (4) shall be made on the form prescribed by regulation and a copy of the application shall be served on the other party.
Notice of hearing
(8) At the hearing both parties are entitled to appear and be heard and the Director shall consider the following factors:
(d) such other matters as may be prescribed by the regulations.
(b) approve a rent increase of such lower amount as he may specify, and shall give written notice of his decision, and the reasons therefor, to all parties within thirty days of the date of the hearing.
Increase frozen pending decision
APPEALS TO RESIDENTIAL RENTAL PROPERTY BOARDS
24. Repealed by 1991,c.18,s.22 Nov. 4/91.
(2) Appeals made to the Commission shall be heard by it within thirty days of receipt of the appeal.
26. (1) An appeal to the Commission shall be by way of a re-hearing, and the Commission may receive and accept such evidence and information on oath or affidavit as in its discretion it considers fit and make such decision or order as the Director is authorized to make under this Act.
Appeal to Supreme Court
(2) A lessor or lessee may, within fifteen days of the decision of the Commission, appeal to the court on a question of law only.
(3) The rules of court governing appeals apply to an appeal under subsection (2).
Filing of order in Supreme Court
Abolition of distress
27. The remedy of distress is abolished and no lessor shall distrain for default in the payment of rent. 1988,c.58,s.27.
Property left by lessee
(3) An application pursuant to subsection (2) may be made ex parte, and shall set out the facts from which abandonment is inferred, and a detailed list of the abandoned property.
(4) The Director, in an application pursuant to subsection (2), may make such order as he deems just and fit in the circumstances.
(6) The Director shall hold any proceeds remaining from the sale, after authorized expenditures, in trust to the credit of the former lessee and, if the former lessee does not claim the remaining proceeds within two years of the sale, the Director shall forward the unclaimed proceeds to the Minister of Finance as part of the Province of Prince Edward Island's Operating Fund.
Failure to deliver, effect of
(2) Where subsection (1) is not complied with, only the provisions of this Act and the standard form rental agreement are binding upon the lessee, and the lessee is not bound by any additional terms contained in the written agreement unless and until it is served on him in accordance with subsection (1).
(3) Where a written rental agreement has been entered into before the effective date and the lessee has not been supplied with a copy of the agreement, the lessor shall, within twenty-one days of the effective date deliver a copy of the agreement to the lessee in compliance with subsection (1). 1988,c.58,s.30.
31. (1) The lessor shall at the time of entering into the rental agreement provide the lessee with the following information in writing:
(b) the name and telephone number of the person responsible for the premises.
Multiple units, notice to be posted
32. Where an appeal is made under this Act the time limited for giving any notice or doing any other thing under this Act is suspended from the day on which the appeal is filed and commences to run again from the day on which the decision on the appeal is made. 1988,c.58,s.32.
Service of notices
33. (1) Any notice, process or document to be served by or on a lessor, lessee or the Director or the Commission is sufficiently served if
(iv) to the Commission at the address of its office.
(2) Where a notice cannot be delivered personally to a lessee by reason of his absence from the premises or by reason of his evading service, the notice may be served on the lessee
(c) by sending it by ordinary, certified or registered mail to the lessee at the address where he resides.
(3) Where a document is delivered by ordinary mail, it is deemed to have been delivered on the third day after the date of mailing. 1988,c.58,s.33; 1991,c.18,s.22 Nov. 4/91.
34. Any person who violates or fails to comply with any order, direction or other requirement of a Commission or the Director or contravenes any provision of this Act, or any lessor who takes action against a lessee because of resort by the lessee to any governmental authority in respect of the residential premises or because the lessee attempts to enforce or secure his rights under this Act, is guilty of an offence punishable on summary conviction and is liable to a fine of not more than two thousand dollars. 1988,c.58,s.34; 1991,c.18,s.22 Nov. 4/91.
35. The Lieutenant Governor in Council may make regulations. 1991,c.18,s.22 Nov. 4/91.