Manitoba Announces 2018 Rent Increase Guideline, Ontario’s Rent Control Expansion Impacts Supply

by | Oct 9, 2017 | Rental Property Management Tips

Manitoba 2018 Rent Increase Guideline Set

Manitoba Rental Branch has announced that the rent increase guideline for 2018 is set at 1.3 percent.

That guideline applies to rent increases throughout 2018. The figure is down slightly from the 2017 cap of 1.5 percent.

Tenants must be provided notice of rent increases at least three months prior to the rent increase taking effect. Generally rent can only be increased once per year. The Manitoba Residential Tenancies Branch provides Notice of Rent Increase forms.

According to the branch, the guideline applies to most units, including apartments, single rooms, houses and duplexes. However, some units are exempt:
Units renting for $1,475 or more per month as of December 31, 2017;
Personal care homes;
Approved rehabilitated rental units;
New buildings less than 15 years old where an occupancy permit was first issued or a unit was first occupied after April 9, 2001; and
New buildings less than 20 years old where an occupancy permit was first issued or a unit was first occupied after March 7, 2005.

Tenants can object to any increase in rent regardless of whether it is at, below or above the guideline. For more information, contact the Manitoba Residential Tenancies Branch.

Ontario’s Supply Impacted by Rent Increase Caps

In other news, Ontario’s newly-expanded rent control measure may already be impacting supply of rental housing.

A survey commissioned by the Federation of Rental-housing Providers of Ontario indicates that 20,000 planned apartment units now are under review as developers contemplate the impact of the rent control expansion. Lawmakers in Ontario this year eliminated a rent-control exemption that previously covered buildings built on or after November 1, 1991.

One major developer surveyed indicated that “a market in which our development and financing costs aren’t fixed, but our revenues are fixed, makes purpose built rental high risk for tenants in our communities.”

FRPO calculates that the potential investment in Ontario rental housing now at risk, should these projects not proceed, is $6.5 billion. According to FRPO, investors now must determine whether it still makes sense to go forward with purpose built residential rentals, put the projects on hold, or convert to condominiums.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

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Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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