Manitoba Cuts Landlords’ Capital Cost Recovery By 40%

Manitoba Cuts Landlords’ Capital Cost Recovery By 40%
News| October 22, 2026| Joel Bowey
Canada + Apartment Buildings

Manitoba is tightening the rules on how apartment owners recover renovation costs through rent increases, potentially making upgrades to older rental buildings less attractive.

The province says it will reduce, by 40%, the capital expenses landlords can pass on to tenants through above-guideline rent increases. Those applications allow owners to seek higher rents for qualifying repairs and improvements.

Another change took effect immediately: tenants no longer have to pay proposed increases while the Residential Tenancies Branch considers an application.

“We’ve been hearing stories from Manitobans who are being asked to pay huge rent increases,” said Public Service Delivery Minister Mintu Sandhu.

The announcement follows disputes over substantial proposed rent hikes at Winnipeg apartment buildings.

At an Oct. 2 legislative hearing, Winnipeg apartment owner Michael Choiselat warned that reducing eligible capital expenses would leave landlords “materially disincentivized from improving their properties.”

Ontario’s legislature defeated a similar bill in March that would have tightened above-guideline rent increase rules by requiring additional documentation and excluding certain expenses.

Manitoba’s changes come ahead of a January expansion of rent control to units below $2,000 a month, up from $1,670. For multifamily investors, the combination could affect renovation budgets, acquisition pricing and capital cost recovery.

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