For rent sign

Landlords will be able to increase their rents on Jan. 1. (Kevin Yarr/CBC)

The Island Regulatory and Appeals Commission on P.E.I. has approved an increase for residential rentals in the province.

Starting Jan. 1, rent for heated units can go up two per cent, while the allowable increase for unheated units and for mobile home sites is one per cent.

IRAC chair Moe Rodgerson said the commission considers a variety of factors when setting allowable rent increases.

"We take into consideration submissions that are made by both landlords and tenants," said Rodgerson.

"We also look at the consumer price index, the rate of inflation, and then a variety of costs that go into running an apartment unit. For example, the heating costs, the electricity costs, sewer and water, property taxes, all of those cost factors are then looked at by the commission."

Rodgerson noted this is the allowable maximum increase, but said it's up to landlords to decide if they want to raise rents or not.

Individual landlords or tenants can appeal to the commission for changes other than the allowable increases if they feel they have special circumstances.