THE ISLAND RENT GOING UP JAN. 1

IRAC allows 1.3 per cent increase

IRAC allows 1.3 per cent increase for all rental units on Prince Edward Island

Starting Jan. 1, 2020, Island apartment dwellers can expect a 1.3 per cent increase to their rent.

The Island Regulatory and Appeals Commission announced the maximum allowable rent increase Monday, saying it may be applied to all rental units, whether heated or unheated.

IRAC says it calculated the increase after receiving submissions from tenants, landlords and other members of the public. This year, 52 submissions were received, a significant increase from 13 the previous year. Thirty-four tenants and 18 landlords responded by the deadline of July 26.

The allowable rent increase is primarily based on the 2019 Consumer Price Index for Prince Edward Island. It was calculated by averaging the percentage increase in the P.E.I. All-Items Consumer Price Index for the 12-month period of August 2018 to July 2019.

The commission noted that the average price of furnace oil has dropped. In 2018, the average price, excluding tax, was

94.1 cents per litre; for 2019 year-to-date, the average price is down 0.8 cents to 93.3 cpl.

However, Maritime Electric has requested an increase of 0.7 per cent in power rates.

The commission considered other costs such as water and sewer, insurance, property taxes, maintenance, waste watch collection and interest rates.

Under the Rental of Residential Property Act, landlords are permitted to raise the rent once every 12 months and are required to provide tenants with three months’ written notice by an approved form before the rent increase can take effect.

Landlords seeking rent increases greater than the allowable amount must apply to the Office of the Director of Residential Rental Property and provide the required information.