Order LR09-15

IN THE MATTER of establishing the allowable percentage rent increase for 2010, pursuant to subsection 23(1) of the Rental of Residential Property Act, R.S.P.E.I. 1988, Cap. R-13.1.

BEFORE THE COMMISSION

on Tuesday, the 15th day of September, 2009.

Maurice Rodgerson, Chair
Allan Rankin, Vice-Chair
John Broderick, Commissioner

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Order

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WHEREAS pursuant to the provisions of subsection 23(1) of the Rental of Residential Property Act, the Commission is required to establish the allowable percentage of rent increase for 2010;

AND WHEREAS pursuant to the provisions of subsection 23(2) of the Act, the Director of Residential Rental Property placed a notice in the printed media inviting written representations from lessors and lessees to assist in establishing the annual prescribed percentage rent increase;

AND WHEREAS in setting the prescribed percentage rent increase the Commission has considered the following: representations received pursuant to subsection 23(2) of the Act, the vacancy rates for the province, a review of the economic outlook for the province, a review of the Consumer Price Index forecasts for 2010, a weighted model of estimated cost components for 2009 and 2010, previous allowed rent increases, the Consumer Price Index for 2000 to 2008, the Consumer Price Index forecast for 2009 and the recent history of increase in weekly wages and salaries;

AND WHEREAS the Commission recognizes that the cost of heating residential premises rose sharply during much of 2008, fell sharply in the latter part of 2008 and have remained relatively stable during 2009 to date and increases in the cost of heating residential premises are forecast to continue at, or slightly above, the Consumer Price Index;

AND WHEREAS  the Commission has concluded that a single maximum rate of rent increase is appropriate for 2010 for heated residential rental premises, unheated residential rental premises and for the rent of a mobile home site in a mobile home park;

AND WHEREAS having taken into consideration the foregoing factors, calculations, submissions and projections the Commission has determined the following maximum allowable rent increases to be justified;

NOW THEREFORE, pursuant to the Rental of Residential Property Act,

IT IS ORDERED THAT

1.  The maximum allowable percentage rent increase for 2010 for heated premises shall be two (2.00) percent.

2.  The maximum allowable percentage rent increase for 2010 for unheated premises shall be two (2.00) percent.

3.  The maximum allowable percentage rent increase for 2010 for a mobile home site only in a mobile home park shall be two (2.00) percent.

DATED at Charlottetown, Prince Edward Island, this 15th day of September, 2009.

BY THE COMMISSION:

Maurice Rodgerson, Chair

Allan Rankin, Vice-Chair

John Broderick, Commissioner