COMMISSION SETS NEW
MAXIMUM RENT FOR HEATED PREMISES FOR 2009
Island Regulatory and Appeals Commission announced today it has issued an
Order varying the allowable rent increase for 2009 as it applies to heated
new allowable rent increase for heated premises will be five (5.00)
percent. The allowable increases for unheated premises and mobile home
sites will remain at three (3.00) percent.
Commission noted that the price of home heating fuel has reduced
significantly since the nine percent allowable increase was set in September
and therefore the heating costs component of the allowable rent increase has
been cut from six percent to two percent resulting in an overall allowed
increase of five percent for heated premises.
Commission has the authority under Section 12 of the
Island Regulatory and Appeals Commission Act
to vary orders where a material change of circumstances has
Rental of Residential Property Act
specifically limits rent increases to once in a twelve-month period, however
it is silent on the matter of rent decreases. Therefore the Commission has
determined that it has the authority to vary the allowable increase for
2009, something the Commission was not able to do last year when the
allowable rent increase was set at one percent and heating costs
skyrocketed. Landlords were hit hard by those rising costs, but the
Commission is confident the new allowable rate will recover those costs over
Market indications at the time the allowable rent increase was originally
determined for 2009 suggested that record-high home heating costs would
continue, however, the turmoil in world financial markets, the slowdown in
the economy and the resulting reduced demand for petroleum products have
sharply reduced home heating fuel prices.
DATED at Charlottetown, this
11th day of December, 2008.