Landlords swamp rental agency
Natural gas hikes cited in bid for more revenue
Jun 27, 2001
By Mia Rabson
APPLICATIONS for rent increases above the allowed 1.5 per cent are swamping
the residential tenancies branch and the sheer number of applications has some
Winnipeg tenants afraid they are going to be lost in the shuffle.
Branch director Roger Barsy said since Jan. 1 his office has received 197
applications for a bigger rental increase. In the same period of time last year, they
received 66 applications. Most of the applications are to offset the sharp increase
in natural gas costs from this past winter.
"This is the big crunch," Barsy said, adding he doesn't remember the last time the
department received this many applications.
Most of the applications were received in May, because they are due three
months before a building's rent anniversary, and for the vast majority of buildings
that happens in September and October.
Barsy said he received some additional funding from the government to hire two
people and reallocate a few other current employees specifically to deal with the
onslaught of applications.
But hiring new staff causes concerns for Diana Morin, who thinks training new
staff could lead to mistakes. She already knows of one man who mistakenly
received two notices of rental increase, and was told it was due to a clerical error
when entering the figures.
Small revolt
"What if he didn't question it," she said. "How many more people are like that."
Morin is leading the tenants in her building on Roslyn Road in a small revolt
against their landlord and the tenancies branch.
They have already been granted an extension to file an objection by the
tenancies branch, which Morin says is the first time in the branch's history that
has happened.
Morin said her group has already found inconsistencies in her landlord's
application.
She said her lease says there are only 142 units in her building, while the
increase application says there are 161. She thinks that may include some
condominium units which are attached to her building.
She also says the property management company is asking for $21,000 more for
gas costs than were actually incurred.
If there are anomalies, Barsy said they will be reflected in the amount of increase
approved. All landlords will not be approved for the entire amount applied for, he
said.
"They have to show us all their expenses," Barsy said. Landlords can only receive
increases for costs already incurred, so if applications include capital
improvements that have yet to be made, or potential heating costs for next winter
for example, that will be disallowed he said.
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