Residential Tenancies Branch

 

Upcoming changes to the Act and Regulations

Bill 40 has been approved by the Manitoba legislature. Some of the changes to The Residential Tenancies Act come into effect August 1, 2014 and some of the changes come into effect January 1, 2015.

Effective August 1, 2014:

• Landlords who allow pets in the tenant’s rental unit will be able to charge one month’s rent as a pet damage deposit. Existing tenants who have already paid a pet damage deposit cannot be asked to pay the increased amount.
• The way that the government calculates the annual rent increase guideline will be explained in the Residential Rent Regulation. This explanation will show the formula that the government uses each year to determine the annual rent increase guideline.
• If a landlord carries out renovations in an unreasonable way that interferes with tenant’s enjoyment of the unit and this causes the tenant(s) to move out of the unit, the landlord is considered to have terminated (ended) the tenancy. If this happens, the landlord may have to pay:
• the tenant’s moving costs, up to the amount allowed under the act, and
• the tenant’s reasonable additional expenses because of the move.  This may include the greater of one month’s rent (and any tenant services charge) and any increase in rent (and any tenant services charge) that the tenant may have to pay, for up to 12 months.
• Tenants or any other person a tenant allows in the complex must not engage in unlawful activity in the residential complex that:
• causes damage to a rental unit or the complex
• interferes with the enjoyment of a rental unit or the complex by another tenant, occupant, or the landlord, or someone the landlord or the tenant allows in the complex
• negatively affects the security, safety, health or well-being of another tenant, occupant or the landlord, or someone the landlord or the tenant allows in the complex.

A landlord can give a tenant a notice of termination for unlawful activity, even if the tenant (or a person the tenant allows into the complex) has not been convicted of an offence relating to the unlawful activity.

The branch can grant an Order of Possession to a landlord, even if there has not been a conviction for an offence relating to the unlawful activity.  However, the landlord must provide sufficient evidence of the unlawful activity and its impact on the complex or tenants in the complex to show that it warrants termination of the tenancy.

• If a person does not take part in a hearing at the branch for an order of possession for non-payment of rent, that person will need to apply for leave to appeal if they want to appeal the branch’s order.

This means that if either a landlord or a tenant doesn’t take part in the hearing, they have to get “permission”, or leave to appeal, from the Residential Tenancies Commission to appeal the order.

If someone wants to apply for leave to appeal, they must take their evidence, showing why they could not take part in the hearing, to the Commission within the appeal deadline, and pay a filing fee. Leave to appeal may be granted if:

• the person can show why they were reasonably unable to take part in the hearing, or
• they can show that the order was based on false or misleading information.

If leave is granted, the person doesn’t have to pay another filing fee to appeal the order.

Effective January 1, 2015:
Above Guideline Rent Increases:

• There are changes to the allowable portion of some capital expenditures used for Above Guideline Rent Increase applications. Click here to see Allowable Portions of Capital Expenditures.

Rehabilitation Schemes – Residential Complex:

• The number of major components a landord must complete to qualify for a rehabilitation scheme has changed from two to three. 
• Any improvements proposed in a rehabilitation scheme must not be started before the branch issues the first Order, subject to conditions.
• Landlords must not give any tenants in the residential complex a notice of termination for renovations before the first Order is made.
• The cost per unit used to determine the length of each exemption period has changed:

• Once an order is made approving the rehabilitation scheme, the landlord can’t make another application for the same complex for a period of 10 years from the date that the exemption period ends.
• The Application for Approval of Rehabilitation Scheme for All or Part of a Residential Complex (Form 5A) [ Effective January 1, 2015 ] has changed.

Rehabilitation Schemes – Specified Unit:

• The number of major improvements a landlord must do to qualify has increased from three to four.
• The list of the major improvements within the unit that qualify is updated – ex: at least 75 per cent of all bathroom fixtures, at least 75 per cent of all flooring. To see the list of qualifying items, see our fact sheet Specified Unit Rehabilitation Scheme.
  
  
• The definition of voluntary vacate makes it clear that a unit does not qualify for rehabilitation if the tenant received a notice termination and moved out of the unit because of that notice. This applies to notices given for the following sections of the act:
• Section 95 (termination for paying a deposit with an N.S.F. cheque)
• Section 95.1 (termination for non-payment of rent or tenant services charges)
• Section 96 (termination for causes other than failure to pay rent)
• Section 97 (termination re: caretaker or employee units)
• Section 98 (termination for sale or for landlord’s use)
• Section 99 (termination for demolition, renovation or change of use)

• The cost per unit used to determine the length of each exemption period has changed:

Exemption Period	Cost per unit for applications received up to and including December 31, 2014	Cost per unit for applications received on or after January 1, 2015
one year exemption	$3,500.00 - $4,999.99	$5,000.00 - $7,899.99
two year exemption	$5,000.00 or more	$7,900.00 or more

• The Application for Approval of Rehabilitation Scheme for Specified Unit (Form 5B) [ Effective January 1, 2015 ] has changed.

This is a brief outline of the changes to the act. For more information on these changes, you can call the branch office nearest you.

 

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