A Manitoba tenant has raised concerns over rent discounts being used as a “back door” to increase housing costs, urging authorities to review current regulations that allow landlords to adjust discounts at their discretion.
Brett Kraynyk, a resident of Winnipeg, says uncertainty over his lease renewal has left him worried about a possible sharp rise in rent, despite living in a rent-controlled unit.
“I’m on edge about what will happen,” he said, questioning whether his rent will follow the official increase limit or jump significantly if his landlord reduces the discount applied to his unit.
Under Manitoba rules, rent increases are capped annually based on inflation, with the current guideline set at 1.8 per cent. However, rent discounts — often offered as incentives — can be reduced or removed, effectively raising the amount tenants pay without breaching official limits.
Kraynyk experienced such a jump last year. While his base rent increased slightly within guidelines, a reduction in his discount led to his monthly payment rising by nearly 9 per cent — far above the provincial cap.
With his lease expiring soon, he fears that a complete removal of the discount could result in an increase exceeding 18 per cent, potentially forcing him to relocate.
Tenants Face Limited Options
Housing advocates say such cases are increasingly common. Jace Kettner, a tenant advocate, noted that rent discounts often create a power imbalance between landlords and tenants.
“Tenants usually have no real choice — they either accept the increase or move out,” he said, adding that many renters avoid raising complaints or requesting repairs for fear of losing their discount.
Although landlords must provide at least three months’ notice before changing a discount, tenants often accept the changes to avoid losing their homes.
Landlords Defend Practice
Property managers argue that adjusting discounts is a necessary tool to cope with rising operational costs. Avrom Charach, representing property managers, said discounts are typically reduced gradually rather than removed entirely.
He stressed that base rent increases still follow provincial guidelines and denied claims that the system is being misused.
“If a discount is removed, it’s often to bring rent closer to market value,” he said, adding that landlords also face financial pressures such as higher utility costs and wages.
Debate Over Fairness
Critics, however, argue that the practice undermines the purpose of rent control. Yutaka Dirks, a housing advocate, described the system as “gaming the rules,” allowing landlords to attract tenants with lower initial rent before gradually increasing costs.
He warned that this could destabilize housing affordability and contradict efforts to prevent excessive rent hikes.
The provincial government has recently proposed expanding rent control protections, but current reforms do not directly address rent discount policies.
Call for Policy Changes
Kraynyk believes clearer regulations are needed to ensure transparency and protect tenants from sudden increases.
“The system allows these situations to happen,” he said. “There should be safeguards so discounts aren’t used to raise rent unfairly.”
As housing affordability remains a growing concern, the debate highlights the need for balanced policies that protect both tenants and property owners.
