Winnipeg tenants fight proposed 78% rent hike after 'mainly cosmetic' building upgrades
West Broadway apartment complex's residents say their units languish while building's common areas renovated
Allana Swayze expected to pay more in rent after new flooring, lighting and a security system was added to the entrance and hallways of her Winnipeg apartment building — but she never imagined the owners would ask for a 78 per cent increase.
"The first thing I texted … 'Are we going to fight this?'" Swayze said, after receiving notice during the long weekend.
While Manitoba is limiting rent increases at most units to 1.8 per cent this year, property owners can apply for higher increases if their costs have risen higher than that amount. The final decision is up to the residential tenancies branch.
Swayze is rallying tenants to fight the proposed rent increase by Wingspan Properties through the residential tenancies branch. She's posted notices in the three-storey West Broadway apartment complex and met with a tenant advocate to determine the next steps.
Swayze scored a deal when she snagged the bachelor suite at 303 Furby St. that's now $533 a month, she said. With a potential increase to $948 a month, she would have to cut back on her spending significantly if she remains there.
"I maybe could" afford it, "but at the same time it was kind of nice that I'm in a place where I can finally get ahead," she said.
'Not everyone wants to live with a roommate'
Swayze said some neighbours she's spoken with have questioned whether a 78 per cent increase should be legal, she said.
"Not everyone can afford having to pay over $1,000 a month. Not everyone wants to live with a roommate," she said.
Swayze visited the residential tenancies branch Tuesday morning to find out what recourse tenants have to fight the proposed rent increase.
While there, she met her next-door neighbour, Ely Bronstein, an 80-year-old on a fixed income, who was also seeking information on what tenants could do.
He said in an interview Wednesday that recent renovations to the lobby and hallways make the building look like an upscale hotel, but those improvements didn't extend to tenants' homes in the century-old building.
Bronstein is dealing with a leaking radiator, dripping water taps and flaking paint in his unit.
Fixing those issues would have "a far greater significance than — and I would like to emphasize this — the mainly cosmetic improvements in the common areas, stairwells and hallways."
Wingspan Properties, which took over 303 Furby last year, said in an email it made "substantial building upgrades and improvements to the common areas, to enhance the quality, safety and long-term sustainability of the building."
The rent increase is needed to offset these costs and is in line with provincial regulations, the email said.
A hearing with the residential tenancies branch regarding the proposed 78 per cent increase hasn't been scheduled. The NDP government said the landlord hasn't filed the application yet.
Bronstein fears the landlord wants to push out tenants so the vacated suites can be renovated and rents can be substantially increased for a new generation of tenants.
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He's aware some of the units that went empty in the last year have been renovated.
Wingspan is pursuing "unaffordable housing to satisfy and meet their own agenda," which is to maximize profits, Bronstein alleged.
Brendan Devlin of the West Broadway Tenants Committee said it's "appalling" tenants are being asked to foot the bill for renovations they didn't ask for.
He's aware of some buildings where landlords are seeking rent increases exceeding 100 per cent this year.
Province hasn't enacted changes yet
Devlin said the NDP government has proposed regulatory changes that would expand the number of units eligible for rent control protections, increasing the ceiling from $1,670 to $2,000 for units in buildings 20 years old or older, and minimize how much of a renovation's cost a landlord can pass on to tenants through an above-guideline rent increase.
But the government hasn't enacted those regulations yet.
"We urge them to do so imminently, as tenants are suffering from these kinds of very serious rent increases," Devlin said.
In a statement, Mintu Sandhu, minister of public service delivery, didn't explain why the NDP has yet to implement the regulations. Instead, he criticized the Opposition Progressive Conservatives for holding up Bill 13, which doubles the administrative penalties for landlords who violate provincial rules.
Tory deputy leader Jeff Bereza said more consultations are needed around Bill 13.