The same government regulation that caps your yearly rent increase creates more work for landlords, according to some local property managers.

Each year the provincial government sets the rent increase guideline, the maximum percentage a landlord can increase rent that year without making an appeal to the Residential Tenancies Branch (RTB).

For 2011, Premier Greg Selinger and his cabinet have set the guideline at one and a half per cent, up from the 2010 guideline of one per cent.

“It is intended as a guideline to cover operating expenses,” said Laura Gowerluk, the director of the RTB. “The provincial government cabinet takes into account things related to property.”

The expenses Gowerluk refers to include the cost of Hydro, water, natural gas and general repairs and installations.

Gowerluk said that regarding the process, things are fair in terms of rights to appeal a decision between landlord and tenant.

“As a tenant you can object to an increase below, at or above the guideline – you have the right to object to any rent increase,” she said.

The process of making an appeal can take several months. There are some who feel the process does not need to be regulated.

“The government should not be involved,” said Wally Ruban, chair of the Professional Property Managers Association.

The operations manager for GEM Equities Inc. feels as though the guidelines set by the government are artificially low.

Even with the rent increase guideline set at one per cent, the average increase across Manitoba in 2010 was actually four and a half per cent.

Ruban said that by setting the rent increase guideline low it creates a substantial amount of work for landlords.

If a landlord wants to raise a suite’s rent above the guideline they must submit an application.

“ There does need to be regulation – but to be 100 per cent regulated is unreasonable.

Wally Ruban, chair, Professional Property Managers Association

The application on average will cost $500 and could take months to process by the RTB. Ruban said a lot of landlords either do not want to deal with the application process or don’t know how and in turn lose profit.

“There does need to be regulation – but to be 100 per cent regulated is unreasonable,” he said.

Ruban also thinks that the reason that bigger rental companies will not build in Manitoba is because of the low rent increase guidelines.

He believes this is a problem because there is no real opportunity for people who are living well below their means to move elsewhere and let students and others move into their low rent apartments.

As long as the increase is within reason most renters are generally understanding.

Jesse Bercier, a local musician, has lived in his current apartment for just over a year and said his landlord is raising the rent below the 2011 guideline of one and a half per cent.

“They’ve got to cover maintenance costs ... considering it was such a small increase, I’ve no reason to argue or disagree with it,” he said.

“I have lived in apartments where there has been a substantial increase with very dissatisfactory landlord work, too.”