IRAC approves rent increase

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Only once since 1995 has regulator given the green light to such a large single increase

Starting Jan. 1, 2013, landlords with heated residential properties can charge an additional five per cent more per month while rent for unheated units can increase three per cent.

Rent Rising

The Island Regulatory and Appeals Commission has approved the following increases, effective Jan. 1, 2013:

• The maximum allowable percentage rent increase for 2013 for heated premises shall by five per cent;

• The maximum allowable percentage increases for 2013 for unheated premises shall be three per cent;

• The maximum allowable percentage rent increase for 2013 for a mobile home park shall be one and a half (1.5) per cent.

Organizations: P.E.I. Senior Citizens Federation, Canada Mortgage and Housing Corporation, RisingThe Island Regulatory and Appeals Commission

Geographic location: Charlottetown, Summerside

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Recent comments

  • NotImpressed
    October 02, 2012 - 00:52

    Time to start full time hours at my second job...or just go get a third so I can afford to pay my rent and maybe feed myself at least 1 meal a day. If rents allowed to go up so much, why isn't our pay? The cost of living out weighs what a minimum wage cashier makes per pay, never gunna get ahead in life working on this damn island. Maybe time to quit my 2 jobs and move out west where there is some freaking money to be made.

  • Discouraged
    September 27, 2012 - 09:25

    This is yet again, the rich getting richer off the back of the poor working saps like us. People who were earning above minimum wage because of the challenge of their work are now at minimum wage, companies not caring to increase them to the same standard differential it was when they were hired. The only folks getting any increase are union based and they were lucky if they won a 2% increase so that automatically puts those folks in the hole by 3% because you can bet your bottom dollar they landlords will raise our rents to the full 5%. So where do we go from here as more and more wage earners need places like the food bank to exist and God help those who are not working for whatever reason.

  • JLL
    September 26, 2012 - 08:33

    What does the Gov't expect us islanders to do? They keep raising the prices on everything , taxes, food, rent! No wonder people are leaving this island quickly and goin outwest to work, looks like they love to watch us struggle.

    • huh
      September 26, 2012 - 11:32

      but the government didn't raise your rent. If your rent goes up, your landlord did it.

  • just wondering
    September 26, 2012 - 08:12

    just wondering, this is a question in relation to renting.Iwas informed years ago,adamage deposit went into an account that drew interest going back to the tenent ,providing there was no damage.how many people receive this.I was just wondering.

    • Discouraged
      September 27, 2012 - 09:17

      I know after 11 years of living in my mold infested apartment, I did not get any damage deposit back nore the interest due me. The carpet in the hallway the only new flooring put in 11 years ago was warn badly in two spots and that was caused by my cats which I had paid an extra damage deposit to have there in the first place so where was the rest of the damage deposit?

  • AMB
    September 26, 2012 - 07:57

    This was very disappointing and upsetting to hear. Our rent just went up 3.5% and I have a feeling our landlords will take advantage of the 5% increase. Daycare prices were just approved to go up as well. I wouldnt mind paying the increase if I saw it reflected back on the care of the building. It is full of mold, the basement has flooded several times and has had a few sewar back ups and the landlords never properly cleaned or removed the carpet. Our front walk way has sunken down, making the step up to the concrete step very high and dangerous, this has yet to be fixed. If we had of known all these problems when we looked at this place we wouldnt have moved in, and we are not able to move now again. IRAC really should be going around the province and looking at what the landlords are charging for their dumps before they approve rediculous rent increases. And force the landlords to clean up the rentals!!!!!

  • Simone
    September 26, 2012 - 07:24

    Before you start trashing all landlords, please let me state my case. I am a landlord with one rental unit. I bought it as an investment years ago.Last year Was the first time I raised the rent 1%.This year it will be 3%. The rent I receive pays the mortgage every month the rest I put in an account to pay insurance.property tax,water and sewer ,gas to cut the lawn,and maintenance. At the end of the year I have a princely sum overage of about $200.. This money goes into an account which I save for emergency maintenance on the property. I do not make a cent on this venture but I keep it as an investment. If I did not get an increase, I would not break even. I am not complaining, just defending the small holding landlords.Thank goodness I have been blessed with wonderful tenants who treat my property as their own.

  • Disgusted renter
    September 26, 2012 - 07:20

    Glad to see IRAC looking after Killam, Tim Banks, and PEI Apartments. This is outrageous. rents went up 3.5% last year and now 5% this year! name anyone on PEI who has got a wage iuncrease of 3.5% last year and 5% this year. Anyone? IRAC is way out of line this year. Where was any downlward adjustment on rent when electricity went down last year? They say the increase in the consumer price index is 1.5% - BS. We all know how food, rent, gas, clothes, etc have gone up way more than that. When is someone going to stand up for the average working person on PEI? IRAC has no interest in doing so. Will Ghiz - doubtfull as he has no idea what an average working person is. Who will stand up for us?

  • Bill Kays
    September 26, 2012 - 07:19

    Slum lords abound in this province. Owning rental properties for profit is a predatory form of earning a living. Profiting off of poor people is disgusting. Where are our heroes ready to fight for the poor and the poor in spirit? You surely will not find them in our legislature. IRAC is a joke. When I think of IRAC these descriptors come to mind .. overpaid, pensioned, political patronage appointments, croneyism, and many more. When are we going to say enough is enough.

  • MrWonderFull
    September 26, 2012 - 07:15

    Unreal minimum wage 10 dollars and living costs going up raise wage to 13 dollars

  • Harry O
    September 26, 2012 - 07:14

    IRAC is a political appointment plum for the provincial government. This 5 per cent would need the blessing of the Robert Ghiz government. When you look at the record of the Robert Ghiz government you see numerous failures. The whole One Island strategy collapsed. But what one cannot accuse the Robert Ghiz government of is being - friendly to the working poor, the marginalized, the senior or the disabled Islander. Looks more like neglect and abuse than an honest open friendship. This 5 per cent rent hike underlines the need for a progressive island government that sees the need for a new Island housing strategy to meet the needs of the 21'st century. Gouging tenants is not sustainable in the long run and down right mean in the short run.

    • nitpicker
      September 26, 2012 - 11:30

      I don't believe that's accurate. I think IRAC has full authority to set the rent ceiling, though the government has indeed given them that authority.

  • Bill Kays
    September 26, 2012 - 07:07

    You know, they give us this forum to vent our feelings of frustration in an effort to keep us from rebelling or revolting but believe me, this government doesn't care about the common regular joe or they would put a freeze on rent increases for 5 years, tell the HST where to go, and then they whould resign and let some informed, intelligent, compassionate, caring Islanders run things. Children could not do a worse job. What can we do about a government gone mad?

  • Justine Thyme
    September 26, 2012 - 01:58

    My rent just increased 3.5% and now the next increase will be 5%! This means in a year my rent per month will increase by $75 a month. I live in an apartment building where lights and heat are included. Sadly, general repairs and maintenance on the building is left until it absolutely has to be addressed. My rental agreement included coin laundry on each floor, only to have a non-functioning washer for almost 2 months out of the past year. Cleaning of the common area is non-existant, at best and I shudder to think of what is about to come when the snow flies. I was living in an affordable apartment where rent was $550 a month, but the manager of the building forced me out with his lack of care for the building and not supplying working appliances. Once I moved, new appliances went in and the rent was dramatically increased for the next tenants.Go to IRAC? Certainly did and won, but sitting and waiting for the building attendant to follow up with the repairs was useless. I have no issue with paying rent or even a rental increase if the land lord actually maintains their units and the increase is justified. When the cost of living was only at 1.3% (or somewhere around there) how can IRAC allow a 5% increase based on the threat of HST, when the government said HST wont effect the low and middle income Islanders? The next time there is a public meeting on the rent increase, bet your bottom dollar I will be submitting a letter as a tenant, I'll also be submitting my opinion on HST next election .. which sadly cannot come soon enough.

  • up easterner
    September 25, 2012 - 22:06

    I really feel for the younger generation.I am 50 now and like the rest of the average islanders my age if you have gotten yourself into a financial problem it was of your own making.This younger generation though,are getting continually bombarded with rising this and that,but are expected to get by with little income until they have the experience.What is there on this island to make a life for when the goverment just seems to want to take care of their wonderful pensions,may I say the gov. employees are looking pretty good also .Do they not see the tremendous pressure they are putting on their kids and mine so they can keep up their greedy lifestyles.COME ON SHOULDN,T WE BE LOOKING OUT FOR THEM,WE MAY NEED THEM IN 40-50 YEARS TO GET US THROUGH!!! Totally disgusted the way our Island is headed.

  • al fredd
    September 25, 2012 - 20:53

    could somebody tell me, will there be HST on rent??? If so it will be really ugly, --- of course with the salari we pay to the patronage parasites at IRAC, they will suffer no hardship by putting the rent up, --- the still have slavery ---now they are called the working poor ---and they can't be sold out of their missery

    • JKM
      September 25, 2012 - 21:30

      Once again IRAC kicks the lower class to the curb. In the last few years IRAC has turned its back on the lower class of PEI. From closing trailer parks to raising rents it is getting harder and harder for people to make ends meet. I wonder where this is all going to end. Charlottetown may soon seen an increase in homeless people not being able to afford rent. Thank you IRAC I hope that you will give change to the people who are ask for change for coffee or for food. And I looked it up there will be no HST on rent

  • intobed
    September 25, 2012 - 20:45

    The HST is going to hurt most ordinary Islanders, whether you rent or own a house. Wes Sheridan is just plain wrong when he says otherwise. Say no to the HST. Join Islanders Against HST on Facebook.

    • rosieredrose
      September 26, 2012 - 08:59

      To Simone - you must be in the 1% of landlords, have a quality place and have no complaints. . I congratulate YOU. Are rental units rental ever inspected? If not, that might be a good place for government to create some new jobs. Just because one unit is in great shape does not mean all of them are. Action is definitely required in this area. Are there guidelines to follow? These should be printed in the local PEI newspapers so everyone can see what is required. .

    • Gman
      September 26, 2012 - 09:51

      Islanders have it wrong, cost of living will always go up, it does in Alberta too, the difference is, everywhere else, people get wage increases to help them cope. A $25-$30/hr job in Alberta pays $12-$15/hr on PE. PLUS, Alberta is cheaper to live than PE. The cost of living could roughly be the same but islanders make about 1/2 everyone else The price of everything has gone up about 30% in the last 5 yrs & wages have gone up maybe 3%. If minimum wage is meant to keep up with cost of living increases then minimum wage should be about $13/hr and someone with a trade making $15/hr on PE should be getting around $20/hr. it's not that cost of living is so high, it's that islanders are paid so low. And as long as there's 9 people for every job on PE then it's not about to change. It's like what Wes Sheridan & Rob Vessey have told everyone in the meetings I've been at...if you don't like it, head west.

    • Gman
      September 26, 2012 - 09:51

      Islanders have it wrong, cost of living will always go up, it does in Alberta too, the difference is, everywhere else, people get wage increases to help them cope. A $25-$30/hr job in Alberta pays $12-$15/hr on PE. PLUS, Alberta is cheaper to live than PE. The cost of living could roughly be the same but islanders make about 1/2 everyone else The price of everything has gone up about 30% in the last 5 yrs & wages have gone up maybe 3%. If minimum wage is meant to keep up with cost of living increases then minimum wage should be about $13/hr and someone with a trade making $15/hr on PE should be getting around $20/hr. it's not that cost of living is so high, it's that islanders are paid so low. And as long as there's 9 people for every job on PE then it's not about to change. It's like what Wes Sheridan & Rob Vessey have told everyone in the meetings I've been at...if you don't like it, head west.