Rent discounts create 'back door' for future hikes, says Manitoba tenant calling for rule changes

Brett Kraynyk's lease is coming up for a renewal, and while the Winnipeg property where he lives is rent-controlled, he's worried about a significant increase if his landlord reduces his rent discount — which happened last year. 

"I'm a little bit on edge about what's going to happen. Is my rent going to be a 1.8 per cent increase, as per the mandate? Or are they going to drop from the discount to make it 10 [or] 15 per cent? I really don't know," Kraynyk told CBC News.

Under Manitoba regulations, rental units are protected by increase guidelines set by the province and based on the consumer price index. Currently, the maximum annual increase is 1.8 per cent.

However, some units, including those that rent for more than $1,670 per month, are not protected. Landlords can also apply for approval for an above-guideline rent increase if the guideline amount won't cover their costs for the unit that year. 

As well, landlords may offer tenants a discount on rent, but that discount can be altered at a landlord's discretion, as long as they comply with provincial regulations. Changes to those discounts can sometimes turn into hefty monthly increases, even in rent-controlled properties like Kraynyk's.

"It's hard for me to prepare for other things in life knowing that this potential large looming expense is going to be lingering over my head," he said. 

Kraynyk signed a lease that included a discount when he moved into his North Kildonan two-bedroom apartment six years ago.

Because his apartment is rent-controlled, his landlord can only raise his base rent by the annual guideline amount.

In 2024, Kraynyk paid $1,104 a month — base rent of $1,400, with a $296 discount.

But in 2025, the amount he paid rose to $1,200 — an increase of about 8.7 per cent — after his property manager raised the base rent to $1,424 and cut his discount to $224. The provincial guideline for rent increases in 2025 was set at 1.7 per cent.

"I'm fortunate enough that I can pay my bills, keep up my place and absorb a little bit of a hit. But a lot of other people couldn't," said Kraynyk.

His lease is up in the spring, and he's worried about a possible change to his discount. If it was entirely removed, he would be facing an increase of over 18 per cent.

"I could survive it, but it would force me to move," he said.

Jace Kettner, an advocate with the Tenant Landlord Cooperation Program at the North End Community Renewal Corporation, says rent discounts are often removed or slashed over time.