Manitoba Introduces a new bill to limit rent increases

A new BillManitoba is aiming to create more specific conditions for those landlords who wish to increase their rents over the provincial annual, inflation linked, rental rate. Rent increase guideline. Landlords are currently able to apply for a higher rental increase and present their case to a director of residential tenancies. The bill is intended to add controls, to limit rent increases above inflation except under certain circumstances. 

The bill would limit the application of this guideline to landlords who face significant increases in taxes and utilities, or in security costs, as well as those who invest in major capital projects, such a plumbing and heating upgrades. Notably, the rent guideline has some exemptions.

If the bill is passed then it may be necessary to order a gradual increase.

The bill offers landlords a ten-year exemption from the rent guideline if they convert non-residential buildings into rental units. This element is intended to encourage the increase of rental housing options. It would include commercial or other properties such as office buildings. Owners of buildings that are not being used may be able benefit. 

Current Rent Increase Guideline

You can also find out more about the following: Guideline for 2024 rent increasesThe rate is 3% as of January 1, 2024. The economic adjustment factor is set at 1,9% for 2024, to offset the costs associated with inflation.

According to the guideline, landlords are required to give tenants a proper written notice three months in advance of a rent increase taking effect. The notice must also comply with the requirements set forth by The Residential Tenancies Act. 

The Residential Rent Regulation outlines a transparent method for determining the rent increase guideline in 2024. This guideline is based on the percentage change in Manitoba’s average annual “All-Items,”Stats Canada’s seasonally adjusted Consumer Price Index. 

Exemptions

The guideline applies for most residential rental properties, including apartments and houses. Some units are exempted from Part 9 of the Residential Tenancies Act, and do not have to follow the guideline for annual rent increases. Some of these units are exempt from the guideline for annual rent increases.

• Renting Units for $1,615.00 or More per Month
• There are many types of social housing
• Rental units operated or owned by provincial, municipal and federal governments
• Rental units in buildings occupied since March 2005
• Non-profit lease units
• Cooperative units
• Approved rehabilitated rentals

The landlords are able to apply for an increase in rent above the guideline. However, if this bill is passed, the landlords’ ability will be limited.