Security Deposits in Prince Edward Island

Under Prince Edward Island's Rental of Residential Property Act, a landlord cannot charge more than one month's rent as a security deposit. If your rent is $1,300 a month, the maximum deposit is $1,300.

A landlord must give the tenant a receipt for the deposit when it's collected.

PEI landlords must hold a tenant's security deposit in trust for the duration of the tenancy. It cannot be used as last month's rent or spent before the tenancy ends.

When a tenancy ends, the landlord has 10 days to return the deposit or apply to the Residential Rental Property Tribunal to keep some or all of it for unpaid rent or damage beyond normal wear and tear. If the landlord does neither, the tenant can apply to have the deposit released.

A written move-in and move-out condition report is the strongest evidence either side can bring if a deposit dispute arises.

Either party can apply to IRAC's Residential Rental Property Tribunal for a hearing. The tribunal reviews the evidence from both sides before issuing a written order on how the deposit is to be released.