Residential Tenancies Branch

Rent Increases

Non-profit landlords

How can a non-profit landlord increase rent?

Under The Residential Tenancies Act, a landlord can increase rent once a year. The increase must be applied equally in each rental payment period. The landlord must give the tenant at least three months’ written notice to increase the rent. The notice must tell the tenant:

the present monthly rent separated into:

tenant’s share of carrying charges (operating costs) and taxes shown as a percentage and as a dollar amount,
tenant’s share of debt service costs shown as a percentage and as a dollar amount,
parking charge,
tenant’s credit from the investment fund, if any,
1/12 of tenant’s share of previous year’s revenue shortfall or surplus, if any, and
any other charge;

the new rent separated into:

tenant’s share of carrying charges (operating costs) and taxes shown as a percentage and as a dollar amount,
tenant’s share of debt service cost shown as a percentage and as a dollar amount,
parking charge,
tenant’s credit from the investment fund, if any,
1/12 of tenant’s share of previous year’s revenue shortfall or surplus, if any*, and
any other charge;

when the rent will increase;
that the rent can’t increase unless the tenant receives at least three months’ notice; and
the tenant has the right to ask the Residential Tenancies Branch to review the rent increase.

The Branch supplies ‘Notice of Rent Increase for Life Lease Rental Unit Owned by Non-Profit Landlord’ forms to landlords. The landlord may use their own form as long as it has the same information as the Branch’s form.

* A tenant is responsible to pay their share of any revenue shortfall from the previous year. If there is a shortfall, a tenant may, with the landlord’s consent, pay their share in one or more lump sum payments rather than monthly.

What can a tenant of a non-profit complex do if they think the rent increase is too high?

The annual rent increase guideline doesn’t apply to non-profit life lease complexes. But, if a landlord gives a tenant notice of a rent increase, the tenant can ask the Residential Tenancies Branch to review the increase. If a tenant wants a review, they must send their request to the Branch in writing within 30 days of the day they receive the notice of rent increase.

What does the Residential Tenancies Branch do if a tenant asks for a review of the rent?

When the Branch receives a tenant’s request, it may contact both the tenant and the landlord to discuss the request. If the Branch decides to go ahead with a review of the rents, it will:

let the landlord know they have the right to submit information about the rents they plan to charge; the Branch may also ask the landlord for specific information on the revenue, costs and reserve funds and refund funds of the complex;
send a letter to all tenants of the complex to let them know that the Branch is reviewing the rent; when the other tenants receive the letter, they can also send their comments to the Branch.

What happens when the Residential Tenancies Branch finishes the review of the rents?

After the Branch reviews the information it receives from the landlord and tenants, it issues an order for each unit involved. The Branch may:

adjust or not allow some of the budgeted costs on which the landlord based the rent increase; the Branch will do this if the money isn’t being spent for the benefit of the tenants;
tell the landlord to use money from the reserve fund to pay operating costs; the Branch may do this if there’s enough money in the reserve fund;
tell the landlord not to make a planned contribution to a reserve fund or a refund fund; the Branch may do this if the landlord doesn’t need to contribute more money right now;
set the rents that the landlord can charge on the units in the complex.

The Branch will use the terms of the life lease to calculate the rent the tenant must pay. For example, a lease may say that the rent is based on a portion of the total square footage of all the rental units in the complex. This is calculated by dividing the square footage of that unit by the square footage of all the units.

If a tenant or the landlord doesn’t agree with the Branch’s order, they can appeal it to the Residential Tenancies Commission. The Residential Tenancies Commission’s decision is final.

For Profit Landlords

How can a landlord who is not non-profit increase rent?

the present rent;
the new rent;
the rent increase shown as a dollar amount and as a percentage;
when the rent will increase;
that the rent can’t increase unless the tenant receives at least three months’ notice;
if the annual rent increase guideline applies to this rental unit, the amount of the guideline;
if the annual rent increase guideline does not apply to this unit, the reason for the exemption;
details of any reduction or withdrawal of a rent discount the landlord may currently give the tenant;
that, if the annual rent increase guideline applies to this rental unit, the tenant has the right to object to the rent increase.

A landlord may complete the Notice of Rent Increase electronically on the Branch’s website at www.manitoba.ca/rtb. The form is available under Electronic Forms Submission. After completing the form, the landlord can submit a copy to the Branch electronically and print a copy to give to the tenant. For landlords who prefer, the Branch supplies Notice of Rent Increase forms in paper format. The landlord may use their own form as long as it has the same information as the Branch’s form.

What is the annual rent increase guideline?

Each year the government sets a limit on the amount that rents can be increased. It is called a rent increase guideline. The guideline is shown as a percentage.

The guideline applies to most for profit life lease units. However, it does not apply to:

newer units; if the life lease complex was built and occupied after April 9, 2001, the units are exempt for 15 years; if the life lease complex was built and occupied after March 7, 2005, the units are exempt for 20 years;
units renting for more than a certain amount; this amount may change every year; check the Branch’s website for current information or contact the Branch by phone. In some cases, a tenant may be receiving a rent reduction because they paid a larger entrance fee than the landlord required. In such a case, the unreduced rent amount applies.

Where the guideline applies, the landlord can only increase rent by the amount of the guideline. If the landlord wants a larger increase, they must apply to the Residential Tenancies Branch. The landlord must show that a guideline increase will not cover their cost increases and other allowable expenses. The Branch will decide how much the landlord can increase the rent.
When the guideline applies, the tenant may object to any rent increase whether it’s at, above or below the guideline. If the tenant objects, the Branch will decide how much the landlord can increase the rent.

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