September 4, 2013
Residential landlords all over Manitoba are facing increased pressures these days.
It could be bad tenants or changes in the ways we can legally conduct business (because that’s what we are – business people running a business).
Increased Costs
We also face increased costs.
Whether it’s insurance, taxes or the price of hiring good contractors to keep our property safe and attractive, it’s becoming more expensive to be a landlord in Manitoba.
Fortunately we can try to recover our costs by raising rents, right? Many landlords have emailed us saying that at a minimum their costs are rising by 5% each year. We repeat – that’s the MINIMUM. Many landlords have figures which far exceed 5%.
To counter these costs many small and medium residential landlords need to raise the rent. When you include the fact many landlords are being forced to leave their properties vacant if they can’t find a good tenant and a fair rent is more important than ever like in other anti-landlord provinces such as Ontario.
How Much Can You Raise the Rent in 2014?
On a Sleepy End of Summer Friday Afternoon the Government Announced the 2014 Rent Increase
Remember last Friday? Last Friday in August. Start of a long week-end. You had the barbeque ready, friends coming over, and your kids were excited for the last week-end before school.
That was the day the government announced the 2014 Rent Increase Guideline
Here it is in all it’s non-glory:
“Manitoba Healthy Living, Seniors and Consumer Affairs advises the 2014 rent guideline has been set at two per cent and will take effect Jan. 1, 2014.
The guideline is determined annually and takes into account cost increases such as utilities, property taxes and other expenses in the operation of a residential complex. Manitoba has proposed legislation that would make future calculations as transparent as possible. It is anticipated a prescribed formula or the consumer price index for Manitoba would be used to help determine the guideline rate.”
That’s right. Only 2%
Landlords can apply for an increase above the guideline if they can show the guideline will not cover cost increases they have incurred.
Tenants must receive written notice of a rent increase at least three months before the increase takes effect. For example, for a rent increase to take effect Jan. 1, 2014, tenants must receive notice by Sept. 30, 2013. With few exceptions, rent can only be increased once a year.
Tenants have the right to object to any rent increase, whether it is below, at or above the guideline. Objections must be made at least 60 days before the rent increase is set to take effect.”
Maybe it’s time all landlords in the province remember this when the next election comes.
To discuss this and other Manitoba landlord and tenant issues go to the Manitoba Landlord Forum.
Tags: Credit Checks, Landlord forum, tenant screening, Winnipeg landlords
