Law360 Canada (October 21, 2026, 4:09 PM EDT) -- Manitoba has set new limits on “above-guideline” residential rent increases landlords put in place for capital expenses.
The provincial government is “changing regulations” to cut above-guideline rent increases by up to 40 per cent in a bid to “strengthen protections for renters.”
“The regulation changes will impose new limits on above-guideline rent increases for capital expenses, reducing the cost that can be passed on to renters by 40 per cent,” states an Oct. 20
news release.
According top a government spokesperson, the 40 per cent reduction “refers to the amount of eligible capital expenses that can be included in an above-guideline rent increase application.”
“For example, where the regulation previously allowed one-third of an eligible capital expenditure to be considered, the amended regulation allows 20 per cent of the expenditure to be considered, representing a 40 per cent reduction,” they said in an email to Law360 Canada.
“Similar reductions apply across all capital expense categories,” they said.
The “20 per cent of the expenditure to be considered” would include the maintenance of things such as interior caulking, blinds, drapes, portable emergency lighting” and interior painting.
A landlord’s capital expenses can include payments for a wide range of interior and exterior improvements to a rental property.
This is Manitoba’s latest move to combat a housing crisis in the province — however, it stands in contrast to the fact the annual rent increase limit will go up next year.
Renter and tenant advocate Aidan Wilson spoke from firsthand experience: At one point, his landlord announced rent would go up by $500 a month — even before officials ruled on the landlord’s application for the increase, Wilson claims.
“When our landlord told us our rent would go up by $500 a month, before the Residential Tenancy Branch (RTB) had even ruled on the application, we were shocked. For so many of our neighbours this was the worst-case scenario. We came together, got organized and Premier Kinew listened. There’s more work to do, but this is a good day for renters, and it will help keep rent more affordable.”
Apropos of this, the province has made policy changes so that tenants are no longer required to pay an increase before the RTB renders a decision on an application.
“We’ve been hearing stories from Manitobans who are being asked to pay huge rent increases, sometimes as high as $500 a month before a ruling has even been made. So, we are changing this,” said Manitoba Public Service Delivery Minister Mintu Sandhu.
Back in September, Manitoba’s government
announced it would be enacting a “historic” expansion of residential rent control as of January 2027 — increasing the monthly rent exemption threshold from $1,670 to $2,000.
Hence, residents paying up to $2,000 per month in rent will now be included in the province’s rent control program. This essentially means that more residential units would fall under the province’s rent increase cap program.
But, conversely, the province is also increasing the annual residential rent cap from 1.8 per cent to 3 per cent as of the start of next year. Starting then, landlords falling under the rent control program can increase rent by three per cent — but they can only do it once per year.
Like many other places in Canada, Manitoba is struggling with a housing crisis — particularly in its urban centres.
According to a
report from the organization End Homelessness Winnipeg, there were 2,469 people experiencing some from of homelessness in the city as of Nov. 5, 2024 — with almost 80 per cent being Indigenous. (Manitoba has one of the largest proportions of Indigenous people in Canada.)
A spokesperson with the organization confirmed the 2024 numbers as being the latest reliable data.
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