Prince Edward Island landlords can prepare for a modest rent adjustment in 2026, as the province has announced a 2 per cent allowable increase for all rental units, effective January 1. This applies across the board—from heated and unheated apartments to mobile home sites—offering a uniform guideline for property owners navigating rising operational costs.

The 2 per cent cap was set by the Director of Residential Tenancy, who “took multiple factors” into account before finalizing the rate, including written submissions from landlords about escalating expenses and tenants voicing concerns about affordability and housing availability. The annual change in PEI’s All-Items Consumer Price Index (CPI) was also considered in determining the new rate.

A reminder that landlords must provide tenants with a minimum of three months’ written notice before raising their monthly rent. Additionally, rent can only be increased once every 12 months, and landlords must follow the 2 per cent guideline unless they apply for an above-guideline increase through the appropriate channels.

If a property has undergone significant capital improvements, or if operating costs have increased beyond what the 2 per cent cap can reasonably accommodate, an above-guideline rent increase may be possible.

See here for more info: 2026-Allowable-Rent-Increase.NewsRelease.Final_.pdf