To raise rent above the annual provincial guideline in Manitoba, a landlord must submit an Above-Guideline Rent Increase Application to the Residential Tenancies Branch (RTB). You must prove that your operating costs have spiked significantly or that you have made major capital improvements to the property.
Maintaining high-quality rental housing in Manitoba is becoming increasingly expensive. Whether you manage a large multi-unit apartment building in Winnipeg, a fourplex in Brandon, or a duplex in Steinbach, rising property taxes, utility rates, and major repair costs can quickly erode your margins. Fortunately, while Manitoba enforces strict annual rent increase guidelines to protect tenants, the law recognizes that landlords need relief when faced with extraordinary expenses. By applying for a rent control exemption—technically known as an above-guideline rent increase—you can legally raise rents to cover these costs. This guide outlines the proper procedures, application requirements, and how a real estate law firm can help ensure your submission is approved.
Step-by-Step Process for Landlords in Manitoba
Securing approval from the Residential Tenancies Branch (RTB) requires meticulous record-keeping and strict adherence to timelines. The RTB will thoroughly scrutinize your financial justifications, so your application must be flawless.
Step 1: Determine Your Eligibility
Before applying, you must verify that you actually qualify. 📍 The RTB generally grants above-guideline increases for two main reasons: a significant, uncontrollable increase in operating expenses (such as a massive hike in property taxes or municipal utilities), or substantial capital expenditures (like replacing an entire roof, upgrading the boiler system, or installing new energy-efficient windows). Cosmetic upgrades alone usually do not qualify.
Step 2: Prepare the RTB Application
You must fill out the official “Application for Rent Increase Above the Guideline” provided by the RTB. This application requires you to submit detailed financial statements. You must provide clear documentation of your expenses for the current year compared to previous years, including invoices, contractor receipts, and property tax assessments to justify the percentage increase you are requesting.
Step 3: Serve Legal Notice to Your Tenants
In Manitoba, you must give your tenants exactly three full months of written notice before any rent increase can take effect. You must serve this notice even if the RTB has not yet officially approved your above-guideline application. Use the mandatory RTB “Notice of Rent Increase” form, and indicate on the form that you have applied to the branch for a higher percentage.
Step 4: The RTB Review and Order
Once submitted, an RTB officer will review your file. They will also give your tenants an opportunity to review the application and submit written comments or objections. After weighing the evidence, the RTB will issue an Order setting the maximum allowable rent. If you or the tenants disagree with the decision, either party can appeal to the Residential Tenancies Commission.
How Much Does it Cost in Manitoba?
Applying for an above-guideline increase requires financial transparency, and putting together a successful package often involves professional help.
- RTB Filing Fees: As of recent updates, the RTB may charge a modest administrative fee or filing cost depending on the number of units involved in the application, but it is generally a nominal amount.
- Accountant Fees: Having a CPA prepare your property’s financial statements and expense breakdowns for the application usually costs between $500 and $1,500 CAD.
- Lawyer Fees: Many property management companies hire a landlord-tenant lawyer to structure complex applications, especially for large apartment blocks. Legal representation for an above-guideline application typically ranges from $1,000 to $3,500 CAD.
| Type of Expense | Likely to Qualify for Exemption? | Examples |
|---|---|---|
| Major Capital Repairs | Yes (Highly Likely) | New roof, new HVAC system, structural foundation work |
| Statutory Operating Costs | Yes | Sudden spike in municipal property taxes or water/hydro rates |
| Routine Maintenance | No | Lawn care, snow removal, minor plumbing fixes, painting |
| Cosmetic Renovations | No | Upgrading to granite countertops strictly for aesthetics |
How Long Does the Process Take?
Applying for an exemption requires significant lead time. Because you must provide tenants with three months’ notice of the rent increase, you should submit your complete application to the RTB at least 2.5 to 3 months before the intended effective date. The RTB’s review process itself typically takes between 2 and 4 months, depending on the backlog of cases and whether tenants file formal objections.
Frequently Asked Questions (FAQ)
What happens if the rent increase date arrives before the RTB makes a decision?
If the effective date passes and you are still waiting for the RTB Order, the tenant is only legally required to pay the standard guideline increase amount. If the RTB later approves the higher amount, the tenant will have to pay you the retroactive difference.
Are any properties completely exempt from rent control in Manitoba?
Yes. New rental buildings are generally exempt from the annual rent increase guidelines for a period of 20 years from the date they first received an occupancy permit. You do not need to apply to the RTB for increases on these specific properties.
Can tenants fight my application for an above-guideline increase?
Yes. Tenants have the right to view your application file at the RTB. They can submit objections if they believe your costs are exaggerated or if they feel the capital repairs were due to your previous negligence and failure to maintain the property.
How often can I apply for an above-guideline rent increase?
You can generally apply annually, but a tenant’s rent can only be increased once every 12 months. If you completed a massive capital project, the RTB may spread the allowable rent increase over several years to soften the impact on the tenants.
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