Critics doubt Residential Tenancies Branch will start saying no to landlords who push for rate hikes

A Manitoba government promise to freeze rents for two years will rely upon an oversight body that has consistently ruled in favour of landlords.

The province made the pledge this week in its new budget, which offeredfinancialreliefto all property owners, including landlords, by slashing their education property tax by 25 per cent this year.

In an attempt to also assist tenants, the Progressive Conservative government said it will prevent landlords from raising rents in 2022 and 2023.

But the one bodystanding in the way of that promiseis the Residential Tenancies Branch, which is empowered to approve landlords' requests forabove-guideline rent increases, provided they argue the material improvements they made to the propertyare significant enough they need higher rents.

Andif history isany indication, the tenancies branchtends to approve renthikes whenever they're asked.

Of the 310 requeststo boost rent higher than the 2.4 per cent ceilingin the 2019-20 fiscal year, the branch approved every one which impacted more than 20,000 units.

The document, obtainedby the Opposition NDPlast year through a freedom of information request, show some renters saw increases of between 30 and 50 per cent.

NDP Leader Wab Kinewsaid the RTBtoo oftenfavours the property owners who call for rent increases.

"There needs to be a balance there, of course, to ensure that properties can be properly maintained and updated to keep with the times, but reallywe have to shift the balance more in favour of the renter right now because things are just getting less and less affordable for them," Kinew said.

The government says thedifference this time around is the RTB will be asked to consider the education property tax rebate the landlords are getting.

'Kind of a directive' to RTB: Fielding

"What we'redoing, and part of the legislation going forward, is they have to take that [rebate]into consideration," Finance Minister Scott Fielding said.

"Sometimes there's justifiable reasons why they may [need to raise rents,there may be some infrastructure improvements that happen the same process when the NDPare in power and the conservatives are in power."

But by and large,Fielding saidthe government's instruction to the branchis "kind of a directive."

He added that under the former NDP government, all2,079 rate hike requests in their last six years in power were alsoapproved, though he wasn't aware if the requested hike amount was always accepted.

Josh Brandon, a community animator with the Social Planning Council of Winnipeg, isn't confident the RTB will suddenly start rejecting most applications.

"It's very difficult for the Residential Tenancy Board to ascertain what are the costs that the landlords are paying that are associated with regular maintenance versus something that's a real improvement to the property," he said.

"Tenants couldend up paying more even with the rent freeze."

Renters shortchanged: Brandon

He believes tenants received little in the budget, especially compared to the property owners who may receive hundreds, even thousands, of dollars.

In order to partially pay for the 25 per cent reduction in their education property tax, the province is cuttingtax offsets (like the $700 tax credit) by 25 per cent as well.The government says freezing the rent will offset the loss of the higher credit, as renters would have paid more if the rent increased by the current 1.6 per cent cap.

Ed and Heather Olferthopethe branchstarts torejectlandlords more often.

They were slated to face a 18 per cent rent hike for their one-bedroom apartment in Osborne Village last year, until the couple put in the paperwork to appealthe decision of the Residential Tenancies Branch. Their landlord got wind and offered to greatly reducethe size of their rate hike so long as they pulled back their appeal.

"If we can get our rent frozen, we'll be very happy and we probably won't move," Heathersaid,"but if they can still get more money out of us, try to squeezeus, then I'm not going to be very happy."

"I won't stick around here then," Ed added.

The NDP is planning to introduce legislation that would address what Kinewbelieves is an unfair system for renters. His party's private member's bill would only pass if it receives the support of the Tory government.

Province pledges financial relief to property owners, and rent freeze in 2022

4 years ago

Duration 2:02

A Manitoba government promise to freeze rents for two years will rely upon an oversight body that has consistently ruled in favour of landlords.