LD26-036

Landlord application · security deposit, rent arrears. Outcome: granted. I find that the Tenant must pay the Landlords rent owing in the amount of $2,867.86 by the timeline below.

Linked prior order: LD26-035

Order text

Order of The Director of Residential Tenancy
Docket 26-012 January 29, 2026
INTRODUCTION
[1] This decision determines an application filed with the Residential Tenancy Office (the “Rental Office”) under the Residential Tenancy Act (the “Act”).
[2] The Landlords seek an order against the Tenant for rent owing.
DISPOSITION
[3] I find that the Tenant must pay the Landlords rent owing in the amount of $2,867.86 by the timeline below.
BACKGROUND
[4] The Unit is a one-bedroom, one-bathroom apartment located in a 4-unit building (the “Residential Property”) that the Landlords have owned since September of 2023.
[5] The parties have a written, fixed-term tenancy agreement from August 1, 2025 to July 31, 2026 (the “Tenancy Agreement”). A security deposit of $1,000.00 was required but only $500.00 was paid on July 18, 2025. The Tenancy Agreement states that rent in the amount of $1,600.00 is due on the first day of the month.
[6] On December 8, 2025 the Landlords served the Tenant with a Form 4(A) Eviction Notice with an effective date of December 28, 2025 (the “Notice”) for non-payment of rent, in the amount of $1,600.00.
[7] On January 2, 2026 the Landlords filed a Form 2(B) Landlord Application to Determine Dispute with the Rental Office which was later amended on January 8, 2026 (the “Application”). The Landlords seek rent owing, which is determined in this decision. The Landlords also seek vacant possession of the Unit and for the Sheriff to put the Landlords in possession, which is determined in Order
LD26-035.
[8] On January 13, 2026 the Rental Office sent the parties notice of a teleconference hearing scheduled for January 29, 2026.
[9] On January 23, 2026 the Rental Office emailed the parties a 69-page evidence package.
[10] On January 29, 2026 the Landlords and the Tenant joined the teleconference. The parties confirmed that they received the evidence package and that all documents previously submitted to the Rental Office were included.
PRELIMINARY MATTER
[11] The Landlords are both owners of the Residential Property and are considered “landlords” under subsection 1(h) of the Act.
[12] The Tenant and the Tenant’s daughter (“TH”) are named on the first page of the Tenancy Agreement. However, the Tenancy Agreement provided in evidence was not signed by TH. The Tenant’s position is that the Tenant is the sole Tenant and TH is a family member occupying the Unit with the Tenant. The Landlords stated that they seek an order requiring the Tenant, TH and any other occupants to vacate the Unit for non-payment of rent.
[13] Based upon the evidence presented, I am only satisfied that the Tenant is a tenant of the Landlords.
It appears that TH is an occupant.
[14] For the reasons below, I find that the Tenant owes the Landlords rent.

ISSUE
A. Does the Tenant owe rent to the Landlords?
ANALYSIS
[15] The parties agree on the following rent payment history:
• August 2025 - $1,600.00 • September 2025 - $1,600.00 • October 2025 - $1,600.00 • November 2025 - $1,600.00 • December 2025 - $0.00 • January 2026 - $0.00
[16] On October 30, 2025 the Island Regulatory and Appeals Commission (the “Commission”) issued
Order LR25-511, which determined a dispute between the Landlords and the Unit’s previous tenant.
The Commission made the following determination (page 5):
“The lawful rent for [the Unit] is confirmed as $1,500.00 per month and may only be increased by following the process set out in the Residential Tenancy Act, cap. R-13.11.”
[17] With a lawful monthly rent of $1,500.00 and four payments of $1,600.00 in the tenancy’s first four months, the outstanding December 2025 rent amount is $1,100.00 ($1,500.00 minus $400.00).
The evidence presented establishes that January rent is also outstanding, in the additional amount of $1,500.00.
[18] In Order LD26-035 the Tenancy Agreement is terminated effective February 5, 2026. Therefore, the Tenant must also pay the Landlords prorated February 2026 rent, in the amount of $267.86 (5 days divided by 28 days multiplied by $1,500.00).
[19] The total amount of rent owing is $2,867.86 (December 2025 rent of $1,100.00, January 2026 rent of $1,500.00 and pro-rated February 2025 rent of $267.86).
[20] I note that subsection 40(2) of the Act authorizes a landlord to keep from a security deposit an amount that the Rental Office has ordered a tenant to pay to the landlord and that remains unpaid at the end of the tenancy.
[21] If the Tenant’s outstanding rent remains unpaid as of February 5, 2026, then the Landlords may, at their option, keep the security deposit to offset part of the Tenant’s outstanding rent.
1 Order LR25-51 is available at the Commission’s following website: https://irac.pe.ca/wpcontent/uploads/Order-LR25-51.pdf

IT IS THEREFORE ORDERED THAT
1. The Tenant must pay the Landlords the amount of $2,867.86 by February 27, 2026.
2. If the Tenant’s outstanding rent remains unpaid as of February 5, 2026, then the Landlords may, at their option, keep the security deposit to offset part of the Tenant’s outstanding rent.
DATED at Charlottetown, Prince Edward Island, this 29th day of January, 2026.
(sgd.) Andrew Cudmore Andrew Cudmore Residential Tenancy Officer
NOTICE
Right to Appeal
This Order can be appealed to the Island Regulatory and Appeals Commission (the “Commission”) by serving a Notice of Appeal with the Commission and every party to this Order within 20 days of this Order.
If a document is sent electronically after 5:00 p.m., it is considered received the next day that is not a holiday. If a document is sent by mail, it is considered served on the third day after mailing.
Filing with the Court
If no appeal has been made within the noted timelines, this Order can be filed with the Supreme Court of Prince Edward Island and enforced as if it were an order of the Court.