MLA complains of 'fatal flaws and gaps' in rental law after eviction of tenants who fought increases

Green MLA Peter Bevan-Baker questioned P.E.I Housing Minister Rob Lantz in the legislature Tuesday about how the province's new Residential Tenancy Act, proclaimed 12 months ago, does and doesn't protect tenants.

Bevan-Baker related the story of some tenants in Charlottetown who successfully challenged a 10 per cent rent increase to the Island Regulatory and Appeals Commission (IRAC), but received an eviction notice immediately after their victory.

"They were told that the owner was going to move into the apartment, which is actually one of the allowable reasons to evict a sitting tenant," Bevan-Baker told Lantz in question period.

"The apartment — remember, the reason for the eviction was that the owner was going to move into it — was subsequently rented out to another tenant. The landlord lied to IRAC."

Amendments to the Residential Tenancy Act may be coming in the fall because the new legislation is 'a living document,' says Housing Minister Rob Lantz. (Province of P.E.I.)

Bevan-Baker pressed the minister on what penalties might apply to landlords in similar situations under the legislation that came into effect in April 2023. Lantz responded he could not specifically comment without knowing more details of this case.

"There are many protections and penalties within the act itself," he said. "Whatever penalties are available under the act itself, there are potentially civil penalties through the courts, as well. I just maintain that this act is much stronger than the previous act. It has many more tenant protections."

In a subsequent question, Bevan-Baker went on to say the new tenants in the disputed unit were paying a rent 66 per cent higher than the previous tenants. The maximum allowable by law, and only then with special approval from IRAC, is supposed to be six per cent.

Another eviction

Upon learning of this, the new tenants also successfully appealed to IRAC and were refunded the excess rent they had paid, said Bevan-Baker — only to meet the same fate as the people who'd been living in the apartment before them.

"I'm sorry to say that this tenant has since also been evicted by the landlord, just like their predecessor," he said.

"Yes, the [Residential Tenancy Act] is much stronger, but it still has some fatal flaws and gaps. The only way to control this sort of unlawful activity is to establish a rental registry. Will you do this immediately?"

Lantz said the new tenants seemed to have signed their lease before the new act was in place, along with protection that would have prevented the 66 per cent rent increase.

"If it had been in effect, the new tenants would have known the previous rent and known that it was an illegal rent increase," he said. "Even in this case, it sounds like the tenants were fairly compensated through a fair process that's in place through an appeal to IRAC."

As for changes, Lantz said the act is new and, like any piece of legislation, a living document.

The government is taking note of some shortcomings in the act, he said, and is likely to bring forward amendments in the fall.