Policy change gives Manitoba renters a break from proposed hikes

Aidan Wilson said he was reduced to tears after getting a call from Premier Wab Kinew’s office.

He’d just learned tenants of a West Broadway apartment, including himself, would no longer pay a hundreds-of-dollars monthly rent increase as of Nov. 1.

“It’s been a lot to deal with, it’s a lot to push for, and it’s a lot to speak up. All of these emotions just kind of came flooding out,” Wilson said Tuesday at a news conference alongside Kinew.

The premier announced that renters will not have to pay the increases until the provincial Residential Tenancies Branch hears landlords’ arguments and issues its decisions.

Kinew said the government changed its policy after tenants at eight Winnipeg apartment buildings, owned by Wingspan Properties of Alberta, pushed back against proposed rent increases of between 54 and 125 per cent.

They argued they should be given the opportunity to challenge the hikes before being required to pay them.

“We recently passed legislation in the house to make sure life will be more affordable,” Kinew said. “But today we’re also announcing a few steps that take things a bit further, to balance things back in the direction of renters, of tenants, of people who work hard in Manitoba and just need a little bit of help in this cost of living crisis we are all facing.”

The Free Press reached out to Wingspan and a number of other landlords for comment but did not receive responses before publication.

Kinew announced the annual tax credit for renters would increase to $675 and cheques would be issued to Manitobans directly.

Dozens of renters protested outside Kinew’s constituency office last month to demanding the province intervene over the disputed increases.

At the heart of the dispute was the provincial policy requiring tenants to pay the higher rent sought while the landlord’s application was being considered.

Tenant advocates said the practice made renters pay hundreds of dollars more each month while waiting for a decision, potentially forcing some to relocate before they had a chance to challenge the increase.

Tenants questioned whether the proposed hikes reflected legitimate capital expenses or increased operating costs that would justify exceeding Manitoba’s annual rent guideline, set at 1.8 per cent for 2026 and three per cent for 2027.

Landlords can apply to the tenancies branch for permission to exceed the annual guideline based on several factors, including major capital expenditures and rising operating costs. The Wingspan buildings were not covered by other exemptions to rent controls, including those based on building age or monthly rent thresholds (set at $1,675 per month, and increasing to $2,000 per month on Jan. 1, 2027).

On Tuesday, the province also announced it will reduce the amount of eligible capital expenditures that can be claimed toward an above-guideline increase to 40 per cent, rather than 50 per cent. The change will take effect on Oct. 28.

Kinew said the province consulted landlords “extensively” and went “above and beyond” to address their concerns.

“But the reality is we’re in an affordability crisis and we have to act to help Manitobans,” he said.

Kinew said a legal review concluded landlords should not collect above-guideline rent increases before approval by the tenancies branch, prompting the province to issue a clarifying order. He acknowledged legislation will be needed to close a potential loophole that could leave tenants facing large retroactive payments.

The province will fill four vacancies and hire four additional staff at the office to address backlogs that can delay decisions.

Kinew suggested some landlords rushed to submit applications ahead of anticipated rent control changes. The tenancies branch was on pace to receive nearly 800 this year, compared with the usual 400 to 500.

“I’m not going to say that’s people gaming the system, but I wouldn’t object if you said it was someone gaming the system,” he said.

He also questioned why rents do not decrease once landlords recover their capital expenditures.

“It never does,” he said. “There needs to be a recognition that the current approach to tenants and renters in Manitoba is very much on the side of the landlord.”

Kinew acknowledged landlords may push back against the changes.

Tory housing critic Jeff Bereza said the announcement only kicks the can down the road.

“It will do nothing to address affordability, but as we heard at committee, it will lead to deferred maintenance and declining housing standards,” he said in a statement.

Yutaka Dirks of the Right to Housing Coalition said tens of thousands of renters face unfairly high rent increases over the rent guideline every year, and now that number will decrease.

“It will go a long way to better protecting tenants’ ability to stay in their homes and not be made homeless through huge rent hikes.”

He said while there are still unresolved issues, “this is a big win for tenants who have long called for a fairer rent system and we are very glad to see it.”

He said landlords are still allowed to claim too many expenses when applying for rent hikes.

Fifty organizations had urged the NDP to fulfil its 2023 election promise to limit above-guideline rent increases.

The West Broadway Tenants Committee also praised the announcement.

“Today’s announcement is a decisive victory for the tenants’ fightback against the tyranny of the landlord lobby,” said Maggie Clark.

scott.billeck@winnipegfreepress.com