Stalled rent-hike crackdown bill prompts public outcry from tenants

A group of inner-city Winnipeg tenants has demanded to know what’s holding up a law to crack down on landlords who unjustifiably jack up rents — an election promise the NDP made, but hasn’t kept.

The group was in the public gallery at the Manitoba legislature Thursday to support independent MLA Mark Wasyliw’s Bill 212 — the Residential Tenancies Amendment Act.

Les Scott, a member of the West Broadway Community Organization tenants committee, said the NDP demanded the same thing when it was in opposition and it made an election promise to strengthen rent control by preventing landlords from applying for unnecessary and large rent increases.

“I was profoundly disappointed,” Scott said. “Two years ago, we were in the gallery supporting (St. James MLA) Adrien Sala’s private member’s bill when he was the opposition critic. We were assuming that once the government came into office — this new government — that this would be a priority.”

Scott, a renter who has lived in the same West Broadway apartment for a decade, said the change is not a “budget ask” and is simply to tweak legislation to improve security and affordability.

“It didn’t make the last session. It’s not going to make this session,” he said. “We’re told maybe next session, maybe next year.”

Sala, who’s now finance minister, was not made available for comment.

In an interview Thursday, Public Service Delivery Minister Mintu Sandhu wouldn’t comment on whether the government would support or introduce legislation to crack down on above-guideline rent increases.

Sandhu said he was appointed to the new portfolio in November with a mandate that includes reviewing the Residential Tenancies Act to strengthen renters’ rights and protect affordable housing.

“We are talking to the stakeholders and our doors are open. I will continue to talk to Manitobans and also to the stakeholders and listen to their concerns,” the minister said in an interview.

The government needs to act before more people are priced out of their homes, said Scott, who joined the tenants group after seeing people in his neighbourhood hit by larger rent increases than they could afford.

Despite having rent control, with a three per cent guideline increase for 2024, Manitoba recorded an average five per cent annual increase for a one-bedroom apartment — the biggest increase in Canada, Rentals.ca reported.

Scott said often rent hikes are much higher than the average. For example, the tenants committee went to bat for residents of a building on Langside Street who had been hit with a 20 per cent hike, he said.

Most moved out by the time the matter was settled, with the residential tenancies branch approving an increase of more than 10 per cent, he said.

“The legislation around what is allowed for an above-guideline increase is pretty wide open. Just basic maintenance and upkeep can be construed into a large increase. Even unnecessary renovations are done just so they can apply for an increase on top of that,” Scott said.

Landlords may apply for an above-guideline rent increase and then offer tenants a rent discount that they can withdraw at any time depending on market conditions, Scott said. If a landlord decides to stop offering a discount, it’s not considered a rent increase.

“They’re used to keep tenants from complaining about above-guideline increases to the RTB because they just assume that the discount will make it affordable,” Scott said.

“In fact, it’s like the sword of Damocles hanging over your head at any time that can be pulled away.”

A legislative loophole allows landlords to apply for rent increases above the cap year after year, Wasyliw said in the chamber. They’re able to justify the hikes for cosmetic renovations or maintenance costs that should fall under normal wear-and-tear rather than essential repairs, he said.

His bill has almost no chance of being passed. The criminal defence lawyer was kicked out of the NDP caucus last year for having a business relationship with a lawyer connected to convicted sex offender Peter Nygard.

Wasyliw has since gone after Premier Wab Kinew, calling his leadership “toxic.” He filed an ethics complaint against him over his children’s book being published and promoted after he became premier. The ethics commissioner dismissed the complaint.

carol.sanders@freepress.mb.ca