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good news LANDLORDS!!! the government has graciously allowed you a 1% increase

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Deank

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EdWin

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FFS, let the free market decide.

grumpyrom

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Oh please, it's NOT hard at all to increase rents by more than the rent control guidlelines at all. First off:

"The rent increase does not apply to rental units renting for $1,130 or more per month as of Dec. 31, 2011, AND It also does not apply to buildings that are less than 15 years old, where an occupancy permit was first issued or a unit first occupied after April 9, 2001, or less than 20 years old, where an occupancy permit was first issued or a unit first occupied after March 7, 2005."

So basically all of the newer rental stock and anything that is not a slum building is basically excluded to begin with.

Then there is:

"Landlords can apply for an increase above the guideline if they can show the guideline will not cover cost increases they have incurred."

Basically as long as they supply a hydro bill or property tax bill showing their costs have gone up they can apply for an increase larger than the 1%. From personal experience I'd say it's usually more like a 5-15% annual increase that most renter's see.

And finally there's the Building Rehabilition program landlord's can apply for which allows for any increase they see fit provided they spend X amount of dollars on renovations or repairs to all existing suites in a property. I had a landlord do this immediately after buying a building I lived in many years ago, a month after buying the property he started the reno's requiring all tenants to face a minimum increase of 35%. My rent was scheduled to shoot up by over $450/month. All for investing around $5-6/k per suite in reno's that were absolutely not needed.

There are many ways around rent controls and most landlords are very good at getting around them.

grumpy old man

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Sources? Or just "opinion"?

How many apartment buildings do you think there are in Winnipeg? Of that total, how many are "rehabbed"? And how many get to raise their rents 5-15% annually?

Why are there so few built, even now, with the economy purring, the city growing and the vacancy rate at what 0.7%?

I work day in and day out with property managers and developers and owners.

You are woefully misinformed.

Stop rent controls and watch construction boom. When construction booms watch rents COME DOWN. The law of supply and demand will drive rental value.


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grumpyrom

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Personal experience, annectodal information from firiends and relatives as well as some inside information from few of the rental agencies in town. Your not the only one who knows people in the industry.

In 2 decades of renting not once have I EVER seen an increase of less than 5% (my current landlord being the only exception). The same can be said for most of my friends and relatives that rent as well. A more common gripe is "oh crap my rent went up 10% again".

Why are so few built? I don't know, maybe because with a vacancy rate that is soo low and an impotent RTB it's just easier and less risky to continue to milk existing stock? Why risk a few million dollars of capital at minimum to build new, when you can just continually apply for exception after exception and maintain your profit margin with zero risk? By adding to the amount of available stock all your doing is increasing the possibilty that vacancy rates will go down in the long term. What incentive is there to build then?

I also forget the biggest way around rent controls. Sucker people into signing a 1 year lease for (X amount rent - rental discount). Then when the lease is up increase rent by whatever portion of the rental discount you want. Considering the vacancy rent is near 0 the odds the tenant will leave are minimal, and if they do there are dozens lined up for the spot. I know more than 1 person this has happened to. Surprise, lease renewal time....your rent is now $200/month more.

Sorry GOM, most of the larger property managers in town are doing just fine. The only peeps affected by rent controls are those who don't know how to play the system. The RTB is practically pointless. If anything they need more teeth not less.

Deank

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Actually its not nearly an easy process as look here is a bill shows its gone up.

its.. hey I have proof I need to raise it

fine... fill this out

inform all your tenants

deal with any issues that come up

negotiate

and then.. maybe we will allow it
MAYBE

having been a tenant and fought a raise I can tell you, then landlord spent far more in that year to try to justify the raise then he made in the following 3 years off that unit.


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rosencrentz

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I am pretty sure that Grumpyrom's figures are not accurate.
When I was in the carpet business, and dealing with some major rental firms, I had a conversation with a manager who told me that he had to apply to increase rents based on the expenses involved in upgrading costs. No way would a $5000 investment result in a $450 rent increase. I dont remember what the time frame was to recoup the expense, but I think it was around 7 years.
This rental agency was installing new hallway and new apartment carpeting, to keep their older apartments looking very good. They had older renters in very nice older apartment blocks.


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Why are so few built?

I don't know, maybe because with a vacancy rate that is soo low and an impotent RTB it's just easier and less risky to continue to milk existing stock?


That's right.

I attended the meeting where all the existing landlords, potential landlords and other investors decided to cap building new stock, dispite the fact new stock is rent-control free.

Mind you, when we decided to do this we were all pretty well wasted.

rosencrentz

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What does "deciding to cap" mean? Some people got together and decided not to build in Winnipeg?
How would you prevent a company from building?
Too many rules? I noticed a potential apartment builder in North Kildonan gave up and built elsewhere last year. Too many complaints or maybe they did not want a 40 story building in their area? lol
Any builder today would have a sold out sign, because there are no vacancies, and the number of apartment suites I believe have been falling, as many have been converted to condos.
JTF, any vacancies?
Good choice of quality renters?
Has the value of your building increased dramatically the last 5 years?
Good for you, if all of the above are yes!


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All of the above are a yes. How'd you do that? Wink

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