Winnipeg Free Press
Sept. 4, 2002
Landlords unhappy, but province says it has no plans to get rid of controls
By David Kuxhaus
Rent increases for 2003 have been set at one per cent, an amount which landlords say falls far short of covering their costs.
"That's not enough," said Ian Rabb of Dorchester Developments.
His company either manages or owns 3,000 units in the city. He said maintenance and repairs can average about $250 a unit over the course of the year.
"We have a lot of heritage buildings," said Rabb. "If a pipe bursts sometimes you have to rip out a whole ceiling."
The province has been under pressure for the last several years from building owners to get rid of rent controls.
There have also been suggestions that rents be set by the Public Utilities Board as opposed to cabinet.
But yesterday, Corporate and Consumer Affairs Minister Scott Smith said there's no plan to make any changes.
"I think (the system's) fair to both tenants and landlords," said Smith.
He pointed out that there are exceptions to the one per cent guideline.
For example, it does not apply to suites renting for $970 or more per month as of Dec. 31, 2002.
Moreover, landlords can apply for a larger increase if they can demonstrate that the guideline will not cover cost increases they have incurred.
Rabb said they were able to get increases in a few of their buildings over the government-set rate last year. However, he said it can be a time-consuming and costly process.
Rabb said without larger increases, the number of options for renters will be limited. His company currently has a zero occupancy rate and he said rent controls discourage new construction.
But Smith said that new buildings are given a 15-year exemption from rent controls.
"There's no excuse for not having any new construction," said Smith.
He added that other provinces that have done away with rent controls, such as Ontario, have seen rents jump dramatically.
Under Manitoba law, tenants must be given proper notice at least three months prior to the effective date of an increase. In most circumstances, rents can only be increased once a year.
The guideline applies to rented residential apartments, single rooms, houses and duplexes.
Tenants can object to any increase in rent regardless of whether it is at, below or above the guideline.