Rental unit property tax subsidy extended
The province has extended the Rental Unit Property Tax Subsidy to help support landlords cover their increased costs without raising rents for Islanders.
Since launching in January, 1,017 properties have been approved for the subsidy.
“We do not want to see Islanders having to pay more in rent. At the same time, we recognize that landlords have seen increased costs and need help to relieve that financial pressure. To maintain and grow rental units in Prince Edward Island in the face of population growth and a challenging housing market, we have to put programs in place that support tenants and incentivize current and future building.”
- Housing, Land and Communities Minister Rob Lantz
Subsidy rates are determined by how the rental unit is heated:
- Owners of long-term units where heat is included in the rent and oil is the primary source of heat will receive a subsidy of $0.75 per $100 of tax assessed value;
- Owners of long-term units where heat is included and a source other than oil is considered the primary heat (e.g. electric, district heating) will receive $0.375 per $100 of tax assessed value; and
- Owners of long-term rentals where heat is not included in the rent will receive a subsidy of $0.375 per $100 of tax assessed value.
The maximum amount of support received through the Rental Unit Property Tax Subsidy will be capped at 3% or 2% of rental income depending on how the unit is heated. Eligible applicants who heat with oil as the primary source and include heat in the monthly rent will have their property tax subsidy capped at 3% of annual rental income. All other properties will have their subsidy capped at 2%. Property owners must apply for each property separately, if applying for supports for more than one rental property.
Only properties where 2023 rental rates are not increased above 2022 rental rates are eligible for the Rental Unit Property Tax Subsidy. Properties must not have not been approved by the Island Regulatory and Appeals Commission (IRAC) under the Rental of Residential Property Act for an increase to the maximum allowable rent for 2023 for this property, and must not increase rents in 2023 above the existing 2022 rates for the property to be eligible.
“As a province, we recognize that all parties including landlords, property owners and tenants need to be supported,” said Minister of Finance Jill Burridge. “I encourage all eligible unit owners to take this opportunity and apply for this subsidy today.”
Department of Housing, Land and Communities
Department of Finance