The Manitoba government plans new rules for rent increases and incentives for purchasing new apartments

WINNIPEG — Some Manitoba property owners may have difficulty raising rents above inflation and could be required to phase in increases over years if a bill introduced Thursday by the Manitoba government becomes law.

The bill would set conditions for landlords willing to raise rents above annual provincial guidelines, which are tied to inflation. Currently, landlords can ask the Residential Tenancy Director for a higher rent increase for any reason and present their case.

The bill would limit such requests to cases where owners face sharp increases in taxes, utility and safety costs, or where they are investing in capital projects such as plumbing and heating.

“We just want to ensure that these proposals will involve significant capital projects, significant expenses for landlords and that people will not be charged for rent increases above the guidelines because of new paint,” Lisa Naylor, Minister of Consumer Protection and Government Services, said

The bill would also give the Director of Residential Tenancies the power to order rent increases spread over several years, rather than taking effect immediately.

Opposition Progressive Conservatives said the bill may not provide much protection for tenants. The bill allows for steep rent increases due to skyrocketing tax increases, and the NDP government will eliminate the educational property tax break for commercial and rental properties next year.

“When it comes to taxes, we know taxes are going up and renters are going to pay more,” said Tory MP Josh Guenter.

Naylor said that for landlords, limiting rent increases is “probably not their favorite thing,” but added that the bill also includes an incentive for landlords to create new apartments.

The bill would provide a 10-year exemption from rental guidelines for landlords who convert non-residential properties, such as commercial buildings, into rental properties. Naylor said the change could create much-needed housing.

Certain types of rental properties are already exempt from the provincial cap, including those built within the last 20 years, those that can be rented for $1,615 or more per month, and some social housing properties.

This report by The Canadian Press was first published May 23, 2024

Steve Lambert, Canadian Press