A new proposed bill in Manitoba aims to establish more specific conditions for landlords wishing to increase rents beyond the annual, inflation-linked, provincial rent increase guideline. Landlords can currently apply to a residential tenancies director for a higher rent increase, for any reason, and present their case. The bill aims to add controls to this, to limit raising rents above inflation except in certain circumstances.
The bill would limit these applications to situations where landlords face significant increases in taxes, utilities, and security costs, or when they invest in major capital projects such as plumbing and heating upgrades. Notably, there are currently certain exemptions to the rent increase guideline.
If the bill is passed, increases may be ordered to be phased in.
One aspect of the bill that landlords could take advantage of is that it would offer ten-year exemptions to the rent guideline for owners who convert non-residential properties to rental units. This element is aimed at encouraging an increase in rental housing options, and would include commercial or office buildings and other such properties. Property owners of such buildings that are underused may be able to benefit.
Current Rent Increase Guideline
The 2024 rent increase guideline is set at 3%, effective January 1, 2024. The economic adjustment factor for 2024 is set at 1.9%, aimed at offsetting the costs associated with inflation.
Under the guideline, landlords must give tenants proper written notice at least three months before a rent increase takes effect, and the notice must comply with the requirements of The Residential Tenancies Act.
The rent increase guideline for 2024 is determined using a transparent method outlined in the Residential Rent Regulation. This guideline is based on the percentage change in Manitoba’s average annual “All-Items,” seasonally adjusted Consumer Price Index that is produced by Stats Canada.
Exemptions
The guideline applies to most rented residential properties, including apartments, single rooms, houses, and duplexes. However, some units are exempt from Part 9 of The Residential Tenancies Act and are not required to follow the annual rent increase guideline. These exempt units include:
Units renting for $1,615.00 or more per month
Various types of social housing
Rental units owned and operated by, or for, provincial, municipal, or federal governments
Rental units in buildings first occupied after March 2005
Not-for-profit life lease units
Cooperative units
Approved rehabilitated rental units
Again, landlords can currently apply for a rent increase above the guideline; however, if the bill is passed into law, this ability would be limited.