Residential Rent Regulation

Residential Rent Regulation, M.R. 156/92 The Residential Tenancies Act , C.C.S.M. c. R119 Regulation 156/92 Registered August 10, 1992 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Prescribed forms 3 Rental units exempt from rent regulation 4 Repealed 4.1 Maximum rent increase permitted 5 Reporting periods 6 Repealed 7 Determining rent increase above guideline 8 Operating expenses 9 Capital expenses 10 Mortgage interest expenses 10.1 Increase in laundry charges 10.2 Increase for added furniture 11 Prohibited expenses 11.1 Maximum rent discount for new tenant 11.2 Calculating maximum rent chargeable 12 Application for rehabilitation scheme — residential complex 12.0.1 Discharge of registered notice re rehabilitation scheme order 12.1 Application for rehabilitation scheme — specified unit 12.2 Yearly limits 12.3 Review 13 Application to fix value of improvements 13.1 Fees 14 Repeal 15 Coming into force Schedule Forms INTERPRETATION AND FORMS Definitions 1(1) In this regulation, "Act" means The Residential Tenancies Act ; (« Loi ») "economic adjustment factor" means the annual economic adjustment factor prescribed in subsection 7(2); (« facteur de rajustement économique ») "revenue" means, in relation to a residential complex, the aggregate of all rents received for rental units in the complex, other than units to which all or part of Part 9 (Rent Regulation) of the Act does not apply because of section 3 or 116 of the Act. (« revenu ») 1(1.1) For greater certainty, the definition "revenue" in subsection (1) does not include any revenue received from tenant services charges. 1(2) For the purpose of the definition of "rent" in the Act, the value of a rent discount, whether given before or after this regulation comes into force, is included in rent if (a) the rent actually payable plus the rent discount is authorized to be charged as rent under the Act; and (b) the rent discount is provided for in a written agreement between the landlord and tenant. 1(3) At the end of a period of exemption from Part 9 of the Act, the value of a rent discount is calculated by subtracting the rent payable in the first year following the period of exemption from any rent paid during the period of exemption plus an amount equal to the maximum rent increase respecting that rent permitted by regulation in each subsequent year to the end of the period. 1(4) For the purpose of determining the amount of a rent increase allowable under section 132 of the Act, (a) the reference in subsection 132(1) to "similar or comparable rental units"; and (b) the reference in subsection 132(3) to "rental units in the residential complex that are similar or comparable to the tenant's units"; do not include rental units referred to in subsection 116(1) or clause 116(2)⁠(c) of the Act. M.R. 16/2005 ; 143/2006 ; 60/2007 ; 70/2010 ; 56/2011 Prescribed forms 2(1) The forms set out in the Schedule are prescribed for use under Part 9 (Rent Regulation) of the Act. 2(2) A prescribed form that is filed with the director or the commission shall contain all the information required to complete the form. EXEMPTIONS FROM RENT REGULATION Rental units exempt from rent regulation 3(1) Part 9 of the Act (Rent Regulation), except sections 118 and 119, does not apply to the following rental units or residential complexes: 1. Rental units for which the monthly rent payable on December 31 of the immediately preceding year is equal to or greater than $1,510, adjusted annually in accordance with subsection (1.1). 2. Rental units that are owned and administered by or for the Government of Canada, the Government of Manitoba, a municipality or an agency of the Government of Canada, the Government of Manitoba or a municipality, other than the rental units described in subsection (2). 3. The following rental units if the rents charged are fixed with the approval of either Canada Mortgage and Housing Corporation or the Manitoba Housing and Renewal Corporation: (a) rental units in a low-rental housing project owned by a limited-dividend housing company and operated under a contract made under section 26 of the National Housing Act (Canada); (b) rental units owned by a non-profit corporation, housing cooperative or non-profit housing corporation and operated under a contract made under section 26 or 27 of the National Housing Act (Canada); (c) rental units funded under the Residential Rehabilitation Assistance Program administered by the Manitoba Housing and Renewal Corporation and operated under a contract made under section 51 of the National Housing Act (Canada); (d) rental units in respect of which Canada Mortgage and Housing Corporation has entered into a cost-sharing contract under section 82 of the National Housing Act (Canada); (e) rental units in respect of which Canada Mortgage and Housing Corporation has made a contribution under section 95 of the National Housing Act (Canada); (f) rental units owned or leased by a non-profit corporation and operated under an agreement with the Manitoba Housing and Renewal Corporation made under the Manitoba Seniors RentalStart Program established by Order in Council 1123/86; (g) rental units funded and operated under a property management agreement made under the Rural and Native Housing Program established under section 79 of the National Housing Act (Canada); (h) rental units funded and operated in accordance with an agreement under the Manitoba Affordable Housing Program established by Order in Council 264/2002. Exempt rent amount 3(1.1) Starting in 2020, the amount in paragraph 1 of subsection (1) is adjusted on January 1 of each year by (a) increasing the immediately preceding year's amount by a percentage equal to the maximum permitted rent increase that is in effect on that day under section 4.1; and (b) if the result is not a multiple of five dollars, rounding the result to the nearest multiple of five dollars (or to the higher one if it is at the midpoint between two such multiples). 3(2) Despite paragraph 2 of subsection (1), the rental units in premises owned individually or collectively by North Portage Development Corporation or The Forks Renewal Corporation are subject to Part 9 of the Act. M.R. 171/92; 151/93; 171/93; 155/94; 136/95; 171/96; 183/97; 106/98; 125/99; 117/2000 ; 139/2001 ; 148/2002 ; 147/2003 ; 132/2004 ; 159/2004 ; 169/2004 ; 130/2005 ; 192/2006 ; 139/2007 ; 143/2008 ; 143/2009 ; 70/2010 ; 127/2010 ; 86/2011 ; 116/2012 ; 130/2013 ; 229/2014 ; 148/2015 ; 133/2016 ; 120/2017 ; 126/2018 ; 85/2019 4 [Repealed] M.R. 171/92; 171/93; 155/94; 136/95; 171/96; 183/97; 106/98; 125/99; 117/2000 ; 139/2001 ; 148/2002 ; 147/2003 ; 169/2004 ; 130/2005 ; 192/2006 ; 139/2007 ; 143/2008 ; 143/2009 ; 127/2010 ; 86/2011 ; 116/2012 ; 130/2013 ; 190/2014 ; 229/2014 Maximum rent increase permitted 4.1(1) For the purpose of subsection 120(2) of the Act, a landlord may increase the rent charged for a rental unit by no more than the amount determined by the following formula and expressed as a percentage, rounded to one decimal place: Maximum permitted rent increase = 100 × (A-B)/B 4.1(2) If the amount determined under subsection (1) exceeds the inflation-control target range that is adopted by the Bank of Canada and the Government of Canada and published by the Bank of Canada, and that is in effect on January 1 of the year the rent increase is to take effect, the maximum permitted rent increase is the maximum target of the range. 4.1(3) If the amount determined under subsection (1) is less than the inflation-control target range referred to in subsection (2), the maximum permitted rent increase is the minimum target of the range 4.1(4) The amount of a permitted rent increase may be rounded to the nearest dollar. M.R. 190/2014 ; 229/2014 ; 148/2015 ; 133/2016 ; 120/2017 ; 126/2018 ; 85/2019 Reporting periods 5(1) The expenses specified in the prescribed form respecting an application for a rent increase under subsection 123(2) of the Act must relate to (a) a period of 12 consecutive months, the last day of which occurs at least three and not more than 14 months immediately before the date on which the first increase in rent for a rental unit in the residential complex is to take effect; and (b) a period of 12 consecutive months immediately preceding the period described in clause (a). 5(2) When a landlord submits information under this section and in a subsequent year is required to file financial information in respect of the same residential complex, the information must be supplied for a 12 consecutive month period that corresponds to the periods described in clauses (1)⁠(a) and (b), unless the director is satisfied that it is not reasonable to require the landlord to do so. 6 [Repealed] M.R. 151/93; 172/2012 Determining rent increase above guideline 7(1) When an application is made by a landlord under subsection 123(2) of the Act, the director must, in accordance with the Act, this section and sections 8 to 10 and 11 of this regulation, determine the total rent increase for rental units in the residential complex that are not exempt by adding together the following amounts: 1. The change in the operating expenses as determined under section 8, which may be a positive or negative figure. 2. The capital expenses as determined under section 9. 3. The dollar value of any change in services and facilities and other amenities, which may be a positive or negative figure. 4. The greater of (a) one-third of the amount by which the total of operating expenses under section 8 and mortgage interest expenses under section 10 exceeds revenue; and (b) the annual economic adjustment factor multiplied by the revenue. 7(1.1) In making a determination under subsection (1), if one or more of the rental units in the residential complex is exempt, the director must (a) exclude operating expenses incurred in the periods described in subsection 5(1) for the sole benefit of exempt rental units; (b) exclude capital expenses and mortgage interest expenses incurred in the period described in clause 5(1)⁠(a) for the sole benefit of exempt rental units; (c) exclude the dollar value of any change in services, facilities and other amenities that relates to or affects only exempt rental units; and (d) multiply each of the following by A/B: (i) the operating expenses incurred in the periods described in subsection 5(1) for the common benefit of all rental units in the complex, other than expenses incurred in lieu of management fees by a landlord who manages his or her own property, (ii) the capital expenses and mortgage interest expenses incurred in the period described in clause 5(1)⁠(a) for the common benefit of all rental units in the complex, (iii) the dollar value of any change in services, facilities and other amenities that relates to or affects all rental units in the complex. In this clause, A is the total number of rental units in the complex that are the subject of the application; B is the total number of rental units in the complex. 7(2) For the purpose of subsection (1), the annual economic adjustment factor for a year is (a) equal to 62.9% of the amount of the maximum permitted rent increase that is in effect on January 1 of that year under section 4.1; and (b) expressed as a percentage, rounded to one decimal place. 7(3) In this section, "exempt" , in relation to a rental unit, means a rental unit to which all or part of Part 9 (Rent Regulation) of the Act does not apply because of section 3 or 116 of the Act. M.R. 171/92; 151/93; 171/93; 155/94; 136/95; 171/96; 183/97; 106/98; 125/99; 117/2000 ; 139/2001 ; 148/2002 ; 147/2003 ; 169/2004 ; 16/2005 ; 130/2005 ; 192/2006 ; 139/2007 ; 143/2008 ; 143/2009 ; 127/2010 ; 86/2011 ; 116/2012 ; 130/2013 ; 229/2014 ; 148/2015 ; 133/2016 ; 120/2017 ; 126/2018 ; 85/2019 EXPENSES Operating expenses 8(1) A landlord's operating expenses incurred in a period referred to in subsection 5(1) in respect of a residential complex include the following: (a) the cost of advertising to acquire tenants or employees; (b) the cost of renting, maintaining and repairing appliances, facilities, equipment, furnishings and furniture, to the extent that the costs have not been recovered from a tenant's deposit or from another source; (c) the cost of leasing land for purposes directly related to the operation and use or enjoyment of the residential complex; (d) when a landlord provides his or her own personal labour for repairs and maintenance, a reasonable amount in respect of that labour; (e) the cost of tools, equipment and parts, having an individual price of $400 or less; (f) management fees for the management of the residential complex, and if a landlord manages his or her own property and does not incur management fees, the fees allowed under this clause shall be 5% of the revenue for the period, which shall be in place of automobile, office, stationery and other similar expenses paid for by the landlord and salaries paid by the landlord to himself or herself or any other person in respect of management and accounting services other than audit or leasing services; (g) employee wages and benefits other than those provided for in clause (f); (h) service contract costs; (i) reasonable professional fees, including professional fees related to refinancing of the residential complex; (j) bank service charges that have not been recovered from a tenant; (k) insurance premiums; (l) utilities; (m) realty taxes; (n) corporation capital tax; (o) health and post-secondary education tax; (p) the cost of entertainment and promotion, including advertising, that is primarily intended to increase the revenues of the property; (q) other expenses permitted by the director. 8(2) The following shall not be included as operating expenses: (a) expenses that are not related to the normal or usual operation of the residential complex; (a.1) expenses that are exclusively related to the provision of tenant services; (b) non-recurring or extraordinary expenses; (c) the cost of purchasing furniture when furniture is provided in rental units; (d) capital expenses described in section 9; (e) capital cost allowance or depreciation; (f) charitable or political donations; (g) the cost of entertainment and promotion that is not primarily intended to increase the revenues of the property; (h) fines or penalties levied for failure to meet an obligation imposed by contract, statute, regulation or by-law; (i) interest expenses, including mortgage interest; (j) reserves; (k) income taxes; (l) budgeted, projected or anticipated costs; (m) professional fees related to acquisition of the residential complex or to original financing; (n) professional fees related to conversion of rental units to condominiums; (o) fees payable under the Act to the director or to the commission. M.R. 111/2004 ; 70/2010 ; 56/2011 ; 152/2015 Capital expenses 9(1) Subject to subsection (1.1), a landlord's capital expenses are those expenses incurred by a landlord in respect of a residential complex (a) to acquire or replace appliances, furnishings or services and facilities; or (b) for capital improvements or major repairs that have a lasting and long-term benefit to the residential complex. 9(1.1) A landlord's capital expenses do not include (a) expenses that relate to the provision of tenant services; and (b) the portion of expenses for the items referred to in clauses (1)⁠(a) and (b) that relates to enhancing the level of prestige of a residential complex or rental unit. 9(1.2) For the purpose of subsection (1), a landlord's capital expenses are considered to be incurred to the following extent: (a) 1/3 of the acquisition or replacement cost of (i) caulking (interior), (ii) blinds, (iii) drapes, (iv) emergency lighting (portable), and (v) interior painting; (b) 1/4 of the acquisition or replacement cost of (i) air conditioning units (wall or window units), (ii) canopies and awnings (vinyl), (iii) dishwashers, (iv) emergency lighting (fixed units), (v) exterior painting (acrylic), (vi) fences (wooden), (vii) flooring (carpet, laminate or vinyl), (viii) furniture, (ix) garburators, (x) refrigerators, (xi) standby power supply systems (portable units), (xii) tools, equipment and parts, having an individual price of more than $400, (xiii) washers, and (xiv) water heaters (direct heat); (c) 1/6 of the acquisition or replacement cost of (i) cabinetry and countertops, (ii) canopies and awnings (metal or concrete), (iii) caulking (exterior), (iv) central alarm systems, (v) ceramic tiles and tub surrounds, (vi) dryers, (vii) exterior painting (elastomeric), (viii) fire doors, fire escapes, fire separations, firewalls, (ix) flooring (tile), (x) garage doors, (xi) garbage disposal systems, (xii) heating, ventilation and central air conditioning systems, if the acquisition or replacement increases the energy efficiency of the residential complex in accordance with standards established by the director, (xiii) insulation, (xiv) intercom and voice communication systems, (xv) plumbing fixtures, (xvi) roofing, if the acquisition or replacement increases the energy efficiency of the residential complex in accordance with standards established by the director, (xvii) siding, if the acquisition or replacement increases the energy efficiency of the residential complex in accordance with standards established by the director, (xviii) signal boxes, (xix) standby power supply systems (fixed units), (xx) standpipe and hose, (xxi) stoves, (xxii) water heaters (indirect heat), and (xxiii) windows, if the acquisition or replacement increases the energy efficiency of the residential complex in accordance with standards established by the director; (d) 1/8 of the acquisition or replacement cost of (i) cable television wiring, (ii) chimneys, (iii) eavestroughs, (iv) electrical wiring, (v) elevators, (vi) fences (metal or concrete), (vii) flooring (hardwood), (viii) foundation and masonry work, (vix) heating, ventilation and central air conditioning systems, if the acquisition or replacement does not increase the energy efficiency of the residential complex sufficiently to meet standards established by the director, (x) landscaping, (xi) parking lot paving and expansion, (xii) plumbing, (xiii) roofing, if the acquisition or replacement does not increase the energy efficiency of the residential complex sufficiently to meet standards established by the director, (xiv) satellite dishes and wiring, (xv) sewer and water installations, (xvi) siding, if the acquisition or replacement does not increase the energy efficiency of the residential complex sufficiently to meet standards established by the director, (xvii) structural repairs and replacement, (xviii) swimming pools, and (xix) windows, if the acquisition or replacement does not increase the energy efficiency of the residential complex sufficiently to meet standards established by the director; (e) 1/3, 1/4, 1/6 or 1/8, as determined by the director, of the cost of other items as the director determines to be capital expenses. 9(2) Where a capital expense is incurred to provide a substitute for an existing service and the substitution causes a reduction in operating expenses respecting that service in the period in which the capital expense was incurred, an equivalent amount shall be deducted from that category of operating expenses for the previous period. 9(3) Where energy conservation resulting from a capital expense causes a reduction in any category of operating expenses in the period in which the capital expense was incurred, an equivalent amount shall be deducted from that category of operating expenses for the previous period. 9(4) [Repealed] M.R. 151/93 M.R. 151/93; 56/2011 ; 151/2011 ; 172/2012 ; 190/2014 Mortgage interest expenses 10(1) If the following conditions are met, the mortgage interest expenses are the actual mortgage interest expenses incurred by the landlord: 1. The principal cannot exceed, (a) in the case of newly constructed rental property, 75% of the cost of construction; (b) in the case of rental property purchased by the landlord, 75% of the lesser of (i) the purchase price in a bona fide arm's length transaction, or (ii) an independent appraised value acceptable to an approved lender under the National Housing Act (Canada) at the time of the purchase; or (c) in the case of rental property that is substantially rehabilitated or renovated after its construction or purchase by the landlord, 75% of the total cost of the rehabilitation or renovation in addition to the amount referred to in clause (a) or (b). 2. The interest rate charged cannot exceed the interest rate usually charged by approved lenders under the National Housing Act (Canada) at the time the mortgage or a renewal of a mortgage is executed. 3. A renewal of a mortgage must be for an amount that does not exceed the principal that is outstanding on the mortgage immediately before the renewal is executed. 10(2) When a landlord refinances an existing mortgage, the new mortgage is deemed to be a renewal to which paragraphs 2 and 3 of subsection (1) shall apply. 10(3) When the terms and conditions of a mortgage or a renewal of a mortgage or a re-financing of an existing mortgage do not meet the requirements of subsections (1) or (2), the director shall, for the purpose of determining the landlord's mortgage interest expenses, estimate the amount of mortgage interest expenses for the period that would have been incurred had those requirements been met. Increase in laundry charges 10.1(1) In determining an increase in expenses under clause 129(2)⁠(b) of the Act, the director shall take into account (a) any increase, since the date the laundry charges were last increased, in the following: (i) annual expenses for repair of laundry equipment, (ii) rates for utilities, including gas, electricity and water, related to the use of the laundry facilities; and (b) the acquisition or replacement cost of any laundry equipment acquired by the landlord since the date the laundry charges were last increased. 10.1(2) Before making an order under subsection 129(1) of the Act, the director shall consider (a) the cumulative effect on the charges for laundry facilities of the maximum rent increases permitted by regulation for rental units since the date the charges were last increased; and (b) any change in the laundry facilities since the date the charges were last increased. 10.1(3) For the purposes of this section, laundry equipment does not include laundry equipment used for a personal laundry service for tenancies that include the provision of tenant services. M.R. 151/93; 56/2011 Increase for added furniture 10.2 For the purpose of subsection 132.1(1) of the Act, the portion of the cost of furniture by which rent may be increased on a monthly basis is 1/36. M.R. 151/93 Prohibited expenses 11 Despite any other provision of this regulation, the director shall disallow any expense or portion of an expense that (a) does not pertain to the residential complex; (a.1) relates to the provision of tenant services; (b) is incurred as a result of a non-arm's length transaction, to the extent that the expense is unreasonable when compared to similar transactions taking place in the market place; (c) has previously been allowed as part of an application for a rent increase or an increase in the amount of a separate charge for laundry facilities under the Act; or (d) is related to a rehabilitation scheme under section 133 of the Act. M.R. 151/93; 60/2007 ; 56/2011 Maximum rent discount for new tenant 11.1 When a landlord regains possession of a rental unit referred to in subsection 131(1) or 131(1.1) of the Act and offers a rent discount to the tenant under the first tenancy agreement after regaining possession, the amount of the discount shall not be more than 25% of the rent determined by the landlord under subsection 131(1) or 131(1.1) of the Act , as the case may be. M.R. 70/2010 Calculating maximum rent chargeable 11.2 For the purposes of subsection 140(3) of the Act, the maximum rent chargeable when a landlord offers a rent discount under subsection 131(1) or 131(1.1) of the Act is calculated as follows: Maximum rent chargeable = Actual rent paid by tenant under the tenancy agreement (100% minus the maximum rent discount % set out in section 11.1) REHABILITATION SCHEME — RESIDENTIAL COMPLEX Application for rehabilitation scheme — residential complex 12(1) For the purpose of subsection 133(1) of the Act, a rehabilitation scheme that relates to a residential complex must (a) provide for (i) major improvements to three structural components, (ii) major improvements to three or more of the following components: (A) structure, (B) electrical wiring, (C) plumbing, (D) heating, or (iii) a major improvement to two of the components listed in subclause (ii) and two major improvements that improve thermal efficiency by installation of insulation or related measures or both; (b) provide for improvements that will substantially increase the life expectancy and the quality of the residential complex and the rental units in the residential complex; and (c) comply with rehabilitation standards established by the director. 12(2) A landlord who applies for an order approving a rehabilitation scheme must not before the first order approving the scheme subject to conditions is made, (a) commence any improvement proposed in the rehabilitation scheme; or (b) give a notice of termination under clause 99(1)⁠(b) to a tenant in the residential complex. 12(3) For the purpose of subsection 133(4) of the Act, a landlord shall give written notice to the tenants of an application for an order approving a rehabilitation scheme for a residential complex within 14 days after the day the landlord applies to the director for the order. 12(4) When approving a rehabilitation scheme for a residential complex, the director shall determine the period of exemption from Part 9 of the Act allowed under clause 134(2)⁠(a) of the Act as follows: (a) by calculating the total of the landlord's expenditures relating to the rehabilitation scheme and dividing that total by the number of units affected by the scheme to obtain a cost per unit; (b) by determining the length of the exemption period as follows: Cost Per Unit Exemption Period $19,000 – $22,999.99 2 years $23,000 – $26,999.99 3 years $27,000 – $40,999.99 4 years $41,000 or more 5 years 12(5) Despite subsection (2), the director may consider improvements commenced before the first order approving the scheme is made if (a) the director is satisfied that the work was required to be done on an urgent basis; and (b) the application for an order approving a rehabilitation scheme was made within six months after commencing the work. 12(6) When an order under clause 134(2)⁠(a) of the Act is made approving a rehabilitation scheme for a residential complex and exempting units in the complex from Part 9 of the Act, the landlord is not entitled to apply for an order approving a similar rehabilitation scheme on that same complex for a period of 10 years from the date the period of exemption ends. M.R. 60/2007 ; 151/2011 ; 190/2014 Discharge of registered notice re rehabilitation scheme order 12.0.1 In determining whether it is appropriate to submit a discharge of the registered notice under subsection 135.1(6) of the Act, the director must consider (a) whether the residential complex was destroyed or rendered uninhabitable after the order approving the rehabilitation scheme was made; and (b) whether the circumstances in which the residential complex was destroyed or rendered uninhabitable were beyond the landlord's control. M.R. 148/2011 ; 172/2012 REHABILITATION SCHEME — SPECIFIED RENTAL UNIT Application for rehabilitation scheme — specified unit 12.1(1) For the purpose of subsection 133(1) of the Act, a rehabilitation scheme that relates to a specified unit in a residential complex must (a) provide for major improvements in the unit in accordance with rehabilitation standards established by the director and include at least four of the following improvements: (i) kitchen cabinets, (ii) kitchen countertops and sink, (iii) at least 75% of all appliances, (iv) at least 75% of all bathroom fixtures, (v) at least 75% of all flooring, (vi) electrical wiring, (vii) at least 75% of all windows and patio doors, (viii) any other improvement acceptable to the director; and (b) provide for improvements that will substantially increase the quality of the rental unit. 12.1(2) A landlord of a residential complex that has 4 or more rental units, may apply to the director for an order approving a rehabilitation scheme relating to a unit only if the unit has been, or will be, voluntarily vacated by the tenant in accordance with subsections (3) and (4). 12.1(3) Subject to subsection (4.1), a tenant is considered to voluntarily vacate a rental unit when the tenant (a) vacates the rental unit after giving a notice of termination in accordance with subsection 87(2) of the Act (termination by giving notice: agreement without fixed term); (b) vacates the rental unit, in accordance with subsection 21(4) of the Act (tenant who does not renew is deemed to terminate), on the termination date of a fixed term tenancy agreement after receiving a new tenancy agreement in accordance with subsection 21(1) (renewal of written tenancy agreement: specified term) of the Act; (c) vacates the rental unit, with the landlord's consent during the term of a fixed term tenancy agreement; (d) vacates the rental unit after giving a notice of termination in accordance with one of the following provisions of the Act: (i) section 92 (termination for tenant's inability to pay rent), (ii) subsection 92.1(2) (termination re Canadian Forces members and members of armed forces of another country), (iii) subsection 92.3(1) (termination for household, domestic or sexual violence or stalking), (iv) subsection 92.5(1) (termination for accessibility reasons), (v) subsection 92.6(1) (termination for incapacity or move into care facility), (vi) subsection 93(2) (termination on tenant's death), (vii) subsection 93(3) (termination on death of 1 of a group of tenants); or (e) abandons the rental unit as set out in subsection 1(3) (abandoning premises) of the Act. 12.1(4) The rehabilitation scheme must be accompanied by (a) a copy of the tenant's written notice of termination and the tenant's forwarding address and telephone number; (b) a copy of the landlord's written correspondence confirming the tenant's oral notice of termination and the tenant's forwarding address and telephone number; (c) if the tenant did not sign a renewal agreement, evidence that the landlord offered the renewal; or (d) a copy of the abandonment notice posted at the rental unit together with evidence of the landlord's reasonable efforts to contact the tenant to confirm that the tenant did not intend to return to the rental unit. 12.1(4.1) A tenant is not considered to have voluntarily vacated or abandoned the unit if any action by the tenant referred to in subsection (3) occurred after the tenant received a notice of termination from the landlord under section 95, 95.1, 96, 97, 98 or 99 of the Act. 12.1(5) A landlord must not complete more than 20% of the proposed rehabilitation scheme for a specified unit, based on the total cost of the scheme for a specified unit, before the first order approving the scheme subject to conditions is made. 12.1(6) In making an order approving a rehabilitation scheme for a specified unit, the director is to consider (a) the general condition of the residential complex and the specified rental unit; and (b) whether the tenant vacated the unit voluntarily. 12.1(7) When approving a rehabilitation scheme for a specified unit, the director shall determine the period of exemption from Part 9 of the Act allowed under clause 134(2)⁠(b) of the Act as follows: (a) by calculating the total of the landlord's expenditures relating to the rehabilitation scheme, excluding the application fee payable to the director; (b) by determining the length of the exemption period as follows: Cost Per Unit Exemption Period $5,000.00 – $7,899.99 1 year $7,900.00 or more 2 years 12.1(8) When an order under clause 134(2)⁠(b) of the Act is made approving a rehabilitation scheme for a specified unit and exempting the unit from Part 9 of the Act, the landlord is not entitled to apply for an order approving a similar rehabilitation scheme on that same unit for a period of 5 years from the date the period of exemption ends. M.R. 60/2007 ; 172/2012 ; 190/2014 ; 115/2025 MAXIMUM NUMBER OF EXEMPTED UNITS Yearly limits 12.2(1) With respect to exempting rental units from Part 9 of the Act under clause 134(2)⁠(b) of the Act, the director may exempt up to 3,000 rental units in a calendar year provided that the total number of rental units that are exempt under section 12.1 does not exceed 5,500 units at any time during a calendar year. 12.2(2) Subject to the maximum yearly limit set out in subsection (1), the director may, in a calendar year, exempt up to 10% of the rental units in a residential complex, rounded down to the nearest whole number, but if the complex has 10 or less units, one unit may be exempted. M.R. 60/2007 REVIEW OF SPECIFIED UNIT REHABILITATION SCHEMES Review 12.3(1) Not later than September 1, 2010, the minister shall begin a review of the operation of this regulation with respect to rehabilitation schemes for specified rental units, including consulting with those persons as the minister considers appropriate. 12.3(2) Following the review, if the minister considers it advisable, the minister may recommend to the Lieutenant Governor in Council that the regulation be amended or repealed. M.R. 60/2007 IMPROVEMENTS REQUESTED BY TENANTS Application to fix value of improvements 13 For the purpose of subsection 137(2) of the Act, an application by a landlord to fix the value of improvements requested by tenants must be accompanied by a written statement by the tenant or tenants requesting the improvements, alterations or other items. M.R. 151/93 FEES Fees 13.1 The following fees are payable to the director for applications under Part 9 of the Act: (a) application for a rent increase above the amount permitted by subsection 4(1) in respect of a residential complex with (i) 19 or fewer rental units REPEAL AND COMING INTO FORCE Repeal 14 The Residential Rent Regulation , Manitoba Regulation 523/88 R, is repealed. Coming into force 15 This regulation comes into force on the proclamation of The Residential Tenancies Act , S.M. 1990-91, c. 11. SCHEDULE (Subsection 2(1)) The forms in this Schedule are prescribed for use in accordance with the provisions of the Act set out opposite the title of the form. Form Number Title of Form Reference in Act 1A Notice of Rent Increase 26(1), 27 1B Notice of Rent Increase for Life Lease Rental Unit Owned by Non-Profit Landlord 27 2 Notice to New Tenant 116.1(1) 3 Application for Rent Increase Above Amount Permitted by Regulation 123(3) 4 Application for Increase in Charge for Laundry Facilities 127(2) 5A Application for Approval of Rehabilitation Scheme for All or Part of a Residential Complex 133(3) 5B Application for Approval of Rehabilitation Scheme for Specified Unit 133(3) 6 Notice to Tenant — Rehabilitation Scheme for All or Part of a Residential Complex 133(4) 7 Application to Fix Value of Improvement Requested by Tenant 137(2) 8 Notice to Tenant — Permanent Reduction or Withdrawal of Service (Other than a tenant services reduction or withdrawal) 138(1)⁠(a) 9 Application to Fix Value of Permanent Reduction or Withdrawal of Service (Other than a tenant services reduction or withdrawal) 138(1)⁠(b)