How much security deposit can I charge in Prince Edward Island? — Central Rentals Canada
Prince Edward Island · Updated for 2026

How much security deposit can I charge in Prince Edward Island?

Security deposit caps in Prince Edward Island are set by the Residential Tenancy Act (PEI). Charging more than the legal cap is a frequent (and expensive) landlord mistake.

Step-by-step in Prince Edward Island

  1. 1
    Look up the Prince Edward Island cap. Each province has a different ceiling (often equal to one month's rent, sometimes less). Central Rentals shows the live cap when you create a lease.
  2. 2
    Collect the deposit at lease signing. Central Rentals' Smart Deposit tool collects via Stripe-CAD and timestamps the transaction for audit.
  3. 3
    Hold it in a separate account. Prince Edward Island typically requires landlords to hold deposits separately and pay interest — Central Rentals tracks the balance and accrued interest per tenant.
  4. 4
    Return on move-out within Prince Edward Island's legal window. Most provinces require return within 10-15 days, less any documented damages. Central Rentals issues the refund via Stripe with itemised deductions.

Why this matters

Charging more than Prince Edward Island's legal cap automatically forfeits your right to keep any of the deposit when challenged at Island Regulatory and Appeals Commission — even when damages are legitimate.

Frequently asked

Can I charge a pet deposit in Prince Edward Island?

Depends on the province. Some allow a separate pet deposit (e.g., BC, AB); others (e.g., ON) prohibit it entirely. Central Rentals' lease wizard locks the legal pet deposit value for your province automatically.

Do I have to pay interest on the deposit?

Yes in Prince Edward Island. The current rate is set by Island Regulatory and Appeals Commission annually. Central Rentals accrues the interest in your ledger and includes it in the move-out refund automatically.

What can I deduct on move-out?

Reasonable damages above normal wear-and-tear, unpaid rent, and unpaid utilities. Always document with photos. Central Rentals' Move-Out Module generates the deduction breakdown in CRA-ready format.

Stop guessing — let Mark handle it

Central Rentals automates every step above for Prince Edward Island landlords. Generate the right notice, calculate the legal cap, file with Island Regulatory and Appeals Commission, and export to CRA — all in one place.

More Prince Edward Island answers