Rent control and Winnipeg

[MechTech]

Found an interesting article about rent control in Manitoba and was looking for some input from people investing in the market here, even from people who know a bit about it. With property being so affordable in Winnipeg is this an issue with moving forward in the buy and hold platform?

http://www.winnipegrealtors.ca/Editorials.aspx?id=957

 

[fumbrunner]

QUOTE (MechTech @ May 22 2010, 08:21 PM) Found an interesting article about rent control in Manitoba and was looking for some input from people investing in the market here, even from people who know a bit about it. With property being so affordable in Winnipeg is this an issue with moving forward in the buy and hold platform?

http://www.winnipegrealtors.ca/Editorials.aspx?id=957

Rent Controls in Manitoba is an issue in some cases.  There are different rules governing rent increases for SFD, duplexes and triplexes and rent increases above the guidelines are easily done (through vacancies).  Anything above triplexes, rent controls are much more strict and has led to a situation where condo conversions are taking away a substantial amount of rentals from the market.  As with any property anywhere, you have to take those things into consideration when determining whether a property is worth purchasing.

 

[MechTech]

Thanks Gerry,

Yea i looked into it a bit more and found that it can also work as an advantage as well. Comes down to just making sure you do your homework on a property from start to finish. Thanks for the reply

Dan

 

[HandyAndy]

Funny thing is, as a renter, I have had landlords that do not take advantage of the rent increases available to them.
I`ve lived in duplexes where the landlord doesn`t increase the rent for years, perhaps thinking a bird in the hand is better than looking for a new tenant.

 

[koop]

QUOTE (HandyAndy @ May 23 2010, 11:24 PM) Funny thing is, as a renter, I have had landlords that do not take advantage of the rent increases available to them.
I`ve lived in duplexes where the landlord doesn`t increase the rent for years, perhaps thinking a bird in the hand is better than looking for a new tenant.

It does seem alittle useless to raise rent 1% this year, but rent +1% +2.5% next year does add up to something.
As far as "a bird in the hand is better then looking for a new tenant" wrong. There will come a time when I will have to give a long term tenant notice that they need to move out so I can improve the suite, just so i can increase my rent to the market value.

 

[2ndstory]

QUOTE (fumbrunner @ May 22 2010, 09:51 PM) Rent Controls in Manitoba is an issue in some cases. There are different rules governing rent increases for SFD, duplexes and triplexes and rent increases above the guidelines are easily done (through vacancies). Anything above triplexes, rent controls are much more strict and has led to a situation where condo conversions are taking away a substantial amount of rentals from the market. As with any property anywhere, you have to take those things into consideration when determining whether a property is worth purchasing.

One of the reasons why I have the ball rolling on my condo conversion of my 4 plex in Winnipeg. There was an article in the Free Press recently about condo conversions and considerations on retricting the process. If the government wants to restrict it than they are going to need to do something about rent control or real estate investment in Manitoba will never really take off.

Nik