Winnipeg Free Press
Feb 13, 2001
Politicians "gutless" on rent control
By Sean O'Connor
MANITOBA'S political parties lack the guts to address the thorny issue of rent controls, says John Kenny, vice-president of a group representing small landlords throughout the province.
'They're all political wimps on this issue. They probably know as we know that this thing is out of control and should have been dealt with years ago,' said Kenny of the Apartment Investors Association of Manitoba Inc.
Landlords say rent controls are responsible for the city's decaying stock of apartment buildings as they are unable to make enough money from their investments to maintain their buildings or see new ones constructed.
The latest calls for an end to rent controls coincide with unprecedented increases in natural gas prices.
The government's residential tenancy branch estimates there are roughly 300,000 tenants in Manitoba, compared to Kenny's estimate of about 30,000 landlords, and 10-to-l odds aren't the kind of numbers politicians like to line up against.
Scott Smith, Manitoba minister of consumer and corporate affairs, said he's willing to meet any group to discuss problems -- but the policy stays.
'I know there's a concern out there. Especially with the price of natural gas there's certainly some pressure with landlords," said Smith. 'We're not getting rid of rent control."
Both opposition parties say it's time to look at the province's rent control policy, but they stopped short of suggesting abolition.
"Getting rid of it is probably a bigger step than what I'm advocating at this moment," said Tory MLA Glen Cummings, whose party kept rent controls in place over its 11-year tenure in government. 'They need to put this in the same category that they've placed a lot of other things, and that is under review."
His views were echoed by Liberal Leader ]on Gerrard. "Let's get some really good, solid input from both renters and landlords, lets not hide our heads in the sand, lets get the issue on the table."
Mayor Glen Murray gave the issue a boost by blaming dilapidated housing in the inner city on rent controls, saying landlords lack incentive to build new rental units or maintain existing ones.
Landlords say regulated rent increases set by provincial cabinet have fallen far behind costs of maintaining rental units. Between 1986 and 1998, regulated rents increased by 28 per cent, while inflation increased by 41 per cent.
Rent controls limit a landlord to raising the rent annually by a provincially prescribed amount. Manitoba allows a 1.5-per-cent increase this year. For the previous seven years, it was only one per cent. Landlords can apply for increases above the regulated rate.
Bob Shaer of the Professional Property Managers Association in Manitoba said with the latest gas hike, a seven- to 10-per-cent increase in rents is needed for landlords to simply break even.
Darren Lezubski, senior planner at the Social Planning Council of Winnipeg, said the low cost of housing in Manitoba, not rent controls, are likely to blame for the lack of rental construction. He said low-income earners who cannot afford to buy could find themselves squeezed if rent controls are removed.