Landlord group says Manitoba Liberal promise of rent freeze ill-informed

Manitoba Liberal Leader Rana Bokhari promisedWednesday to freeze rents across the province for two years if her
party wins the provincial election in April.

Bokhari says a Liberal government would forbid rent increases in 2017 and 2018 to give renters a chance to catch up with housing costs that have risen sharply in recent years.

"We will give renters a two year vacation from increases to give them time to catch their breath," said Bokhari said, addingthe freeze would apply to high-end units as well as those under rent-control guidelines.

"Every year the rent is going up. We need to start thinkingabout how many Manitobans are spending money out of their foodbudget for rent."

The only exception, she says, would be in cases where a new tenant took over a unit.

The policy would affect all rents, not just those below the currently rent control guideline of $1,435 a month, Bokhari, said.

The Liberals did not consult landlords before making theannouncement. One landlord group said it was both surprised anddisheartened.

"It seems completely ill-planned and I'd love to hear the thought process behind it," said Frank Koch-Schulte, president of the Professional Property Managers Association.

The industry is already tightly regulated, he said, and owners face rising costs for utilities, maintenance and upgrades every year.

"Buildings, particularly in Winnipeg ... are of an older nature and require continual maintenance to keep them of a quality that people expect."

Koch-Schulte said a freeze would discourage landlords from spending money on repairs or improvements.

The province already limits rent increases through an annual guideline usually between one and 2.5 per cent. But it allows landlords to apply for higher increases for a variety of reasons, including upgrades.

Bokhari said the exemptions are too broad. She suggested the average rental increase each year is much higher than the provincial guideline.

According to the Liberals:

• 34.8 percent of Manitoba renters paid more than the recommended 30 per cent of income on shelter (2011 National Household Survey).
• 37.3 per cent of Winnipeggers paid more than 30 per cent of their income on shelter.
• In 2011 362,480 Manitoba households were renting, including 32 per cent in Winnipeg, 35 per cent in Brandon and 30 per cent in Portage la Prairie.