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1st Session, 40th Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.   It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications or view the online bilingual version (PDF).

Bill 28

THE RESIDENTIAL TENANCIES AMENDMENT ACT


Explanatory Note Bilingual version (PDF)

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. R119 amended

1           The Residential Tenancies Act is amended by this Act.

2           The following is added after subsection 7.1(1):

Calculating 48-hour period

7.1(1.1)    The 48-hour period referred to in subsection (1) excludes Saturdays, Sundays and holidays.

3           Subsection 11(4) is amended by striking out "section 75.1" and substituting "subsection 75.1(3)".

4           The following is added after section 29.4:

Increase in tenant services security deposit

29.4.1      A landlord may require a tenant to increase the tenant services security deposit after the deposit has been paid if

(a) an additional person occupies the rental unit with the tenant; and

(b) the landlord increases the tenant services charge as a result.

The amount of the deposit, including the increase, must not be more than 1/2 of the new monthly tenant services charge payable under the tenancy agreement.

5           The following is added after section 31.4:

Deposits not subject to garnishment

31.5        A deposit is not subject to garnishment, whether it is held by a landlord or the director for a tenant.

6           Clause 56.1(3)(a) is amended by adding "or the landlord consents to a subletting or assignment" after "entered into".

7           Subsections 68(3) to (5) are replaced with the following:

Disclosure of estimated rent and tenant services charge

68(3)       A landlord who gives a tenant

(a) a notice of termination of a tenancy for the purpose of renovation under clause 99(1)(b); or

(b) a notice of an application for approval of a rehabilitation scheme under subsection 133(4);

shall, at the time of giving the notice, provide the tenant in writing with a reasonable estimate of the rent (net of any rent discount), and any tenant services charge, that will be payable following the completion of the renovation or the rehabilitation scheme.

Estimated amount unreasonable

68(4)       For the purpose of subsection (3), the estimated amount of the rent (net of any rent discount), and any tenant services charge, is presumed to be unreasonable if

(a) it causes the tenant

(i) not to exercise a right of first refusal in the case of a notice of termination given under clause 99(1)(b), or

(ii) to vacate the rental unit in the case of a notice given under subsection 133(4); and

(b) the landlord does not, within two months of the date the renovated or rehabilitated rental unit is available for rent, enter into a tenancy agreement in good faith with a new tenant under which the rent (net of any rent discount) and any tenant services charge payable by the new tenant is more than 90% of the estimated amount.

Landlord's duty to disclose

68(5)       At the written request of a former tenant or the director, a landlord shall disclose in writing to the tenant or the director

(a) whether the rental unit formerly occupied by the tenant was re-rented

(i) within two months of the date the tenant vacated it, or

(ii) within two months of the date it became available for rent, if subsection (3) applies; and

(b) the rent (net of any rent discount) and any tenant services charge being paid by the new tenant.

Landlord's liability

68(6)       If a landlord contravenes subsection (1), (1.1) or (3), the director may, on application by a tenant, make an order requiring the landlord

(a) to pay the tenant's reasonable moving expenses, as determined by the director, to new living accommodation, up to a maximum prescribed amount; and

(b) to compensate the tenant for the tenant's reasonable additional expenses, as determined by the director, which may include the increased rent and, if applicable, the increased tenant services charge that the tenant is or may be obliged to pay because of the termination, for up to 12 months.

8           Subsection 69(4) of the French version is amended by striking out "un droit pour retard de paiement, lequel droit est déterminé" and substituting "des frais pour retard de paiement déterminés".

9           Section 74 is replaced with the following:

Duty not to impair safety or interfere with rights

74          A tenant or a person the tenant permits in the residential complex must not by act or omission

(a) impair the safety of the landlord, another tenant or occupant of the residential complex, or a person permitted in the residential complex by any of those persons; or

(b) interfere with the lawful right or interest of the landlord, another tenant or occupant of the residential complex, or a person permitted in the residential complex by any of those persons.

10(1)       Subsection 84(1) is amended by striking out "in writing" and substituting "in the prescribed form and signed by the landlord".

10(2)       The following is added after subsection 84(1):

Information missing from notice

84(1.1)     Despite subsection (1), if a landlord's notice of termination omits any information required on the prescribed form, the director may issue an order terminating the tenancy if the director is of the opinion that the omitted information has not resulted in an unfairness to the tenant who received the notice.

10(3)       Subsection 84(2) is replaced with the following:

Notice of termination by tenant

84(2)       A notice of termination by a tenant may be oral or in writing but must

(a) identify the rental unit to which the notice applies;

(b) state the date on which the tenancy is to terminate; and

(c) be signed by the tenant if the tenant's notice is in writing.

10(4)       Subsection 84(4) is repealed.

11          Section 85 is repealed.

12          Section 94 and the centred heading that precedes it are repealed.

13(1)       The following is added after subsection 95(1):

Failure to pay increased tenant services security deposit

95(1.1)     If, after the date a tenancy that includes the provision of tenant services begins,

(a) the increase in a tenant services security deposit given to a landlord in the form of a cheque or other negotiable instrument is not honoured; or

(b) a tenant fails to pay the increase in a tenant services security deposit referred to in section 29.4.1, after being requested by the landlord to do so;

the landlord may give the tenant a notice of termination that is effective not earlier than five days after the notice is given.

13(2)       Subsection 95(2) is amended by striking out "subsection (1)" and substituting "subsection (1) or (1.1)".

13(3)       Subsection 95(3) is replaced with the following:

Failure to pay pet damage deposit

95(3)       If, after the date a tenancy begins,

(a) a pet damage deposit given to a landlord in the form of a cheque or other negotiable instrument is not honoured; or

(b) a tenant receives permission to have a pet, but fails to pay a pet damage deposit after being requested to do so;

the landlord may give the tenant notice to remove the pet from the rental unit on or before the date specified in the notice, which must not be earlier than five days after the notice is given.

14(1)       Subclause 96(1)(a)(vii) of the English version is replaced with the following:

(vii) section 74 (duty not to impair safety or interfere with rights),

14(2)       Subsection 96(3) is replaced with the following:

Early termination for cause

96(3)       The landlord may give a notice of termination that is effective not earlier than five days after the notice is given if there has been

(a) a contravention of

(i) section 70 (obligation to keep unit clean), or

(ii) section 74 (duty not to impair safety or interfere with rights),

that posed an immediate risk to the health or safety of — or substantially interfered with a right of — the landlord, another tenant or occupant of the residential complex, or a person permitted in the residential complex by any of those persons;

(b) a contravention of subsection 72(1) (obligation to take care and repair damage) that resulted in extraordinary damage; or

(c) a contravention of section 73 (duty not to disturb others) that amounted to or resulted in an extraordinary disturbance.

15(1)       Subsection 98(2) is replaced with the following:

Termination rules

98(2)       The following rules apply to a termination under subsection (1):

Minimum notice period

1.  The period of notice must be not less than the period set out in the regulations.

Tenancy agreement with end date

2.  If the notice relates to a tenancy agreement that specifies a date when the agreement ends, the termination is not effective before that date.

Tenant with school-aged child

3.  In the case of a notice to terminate a tenancy during a school year — the period from September 1 of one year until June 30 of the following year — if it is given to a tenant who resides with a child who is attending a school reasonably accessible to the unit, the landlord may not require the tenant to vacate the unit until the end of the school year. While the tenant remains in the rental unit, the terms of the tenancy agreement continue to apply, except for any rent increase that complies with Part 9 and any tenant services charge increase that complies with Part 9.1.

15(2)       Subsection 98(4) is replaced with the following:

Payment of compensation

98(4)       On application by a tenant who vacates a rental unit after being given a notice of termination under subsection (1), the director may make an order requiring

(a) the purchaser, in the case of a notice under clause (1)(a); or

(b) the landlord, in the case of a notice under clause (1)(b);

to compensate the tenant for his or her reasonable additional expenses, as determined by the director, if the occupancy of the rental unit by a person referred to in that clause does not begin within a reasonable period of time or does not continue for at least 12 months.

16(1)       Clause 99(1)(c) is replaced with the following:

(c) in the case of a unit occupied under a life lease, converting it, within six months after the date of termination, into a use other than as a rental unit occupied under a tenancy agreement;

(c.1) converting it, within six months after the date of termination, to a non-residential use; or

16(2)       Subsection 99(2) is replaced with the following:

Termination rules

99(2)       The following rules apply to a termination under subsection (1):

Minimum notice period

1.  The period of notice must be not less than the period set out in the regulations.

Tenancy agreement with end date

2.  If the notice relates to a tenancy agreement that specifies a date when the agreement ends, the termination is not effective before that date.

Tenant with school-aged child

3.  In the case of a notice to terminate a tenancy during a school year — the period from September 1 of one year until June 30 of the following year — if it is given to a tenant who resides with a child who is attending a school reasonably accessible to the unit, the landlord may not require the tenant to vacate the unit until the end of the school year. While the tenant remains in the rental unit, the terms of the tenancy agreement continue to apply, except for any rent increase that complies with Part 9 and any tenant services charge increase that complies with Part 9.1.

16(3)       Subsection 99(4) is replaced with the following:

Payment of compensation

99(4)       On application by a tenant who vacates a rental unit after being given a notice of termination under subsection (1), the director may make an order requiring the landlord to compensate the tenant for his or her reasonable additional expenses, as determined by the director, if the landlord fails to occupy or use the rental unit for the purpose specified within the required period of time.

17          The following is added after section 119:

NOTICE TO AFFECTED PARTIES

Notice by director

119.1       On receiving an application under subsection 123(2) or 127(2) or an objection under section 124 or 128, the director must send a notice to the affected parties advising them that within 10 days after the notice was sent, or such further time as the director allows, a party may

(a) examine during normal office hours all material filed with the director in respect of the application or objection; and

(b) file written comments about the application or objection with the director.

Parties not entitled to copies of certain material

119.2       Parties to a matter under this Part are not entitled to have or make copies of any material filed with, or held by, the director in respect of the matter.

18(1)       Section 121 is renumbered as subsection 121(1) and amended

(a) by striking out "an objection" and substituting "a written objection"; and

(b) by adding the following at the end:

for one or more of the following reasons:

(a) the landlord is not maintaining the rental unit or residential complex;

(b) the landlord has reduced or withdrawn a service and facility;

(c) the landlord is not meeting any other obligation under a tenancy agreement or this Act;

(d) the tenant believes the landlord's costs have not increased;

(e) any other prescribed reason.

18(2)       The following is added as subsection 121(2):

Reason for objection

121(2)      An objection under subsection (1) must identify and explain the reason for the objection.

19(1)       Clause 122(1)(a) is replaced with the following:

(a) shall consider the tenant's objection; and

19(2)       Subsection 122(2) is amended by striking out "If, after inquiring into a tenant's objection and considering the material filed by the landlord," and substituting "If, after considering the information obtained under subsection (1),".

20          The centred heading before section 138 is amended by adding "PERMANENT" before "REDUCTION".

21          Subsection 138(1) is amended

(a) by replacing the section heading with "Application re permanent reduction or withdrawal of services"; and

(b) in the part before clause (a), by striking out "to reduce" and substituting "to permanently reduce".

22          Subsection 140.3(1) is amended by striking out "A landlord" and substituting "Subject to section 140.5.1, a landlord".

23          Subsection 140.5(1) is amended by striking out "A tenant services charge" and substituting "Subject to section 140.5.1, a tenant services charge".

24          The following is added after section 140.5:

NUMBER OF OCCUPANTS AND TENANT SERVICES CHARGE

Tenant services charge increase — additional occupant

140.5.1(1)  If a tenancy agreement includes the provision of tenant services and an additional person becomes a permanent occupant of a rental unit, the landlord may increase the tenant services charge payable under the tenancy agreement by an amount that reflects the value of the increase in tenant services.

Provisions not applicable

140.5.1(2)  Sections 140.3, 140.4 and 140.5 do not apply to an increase in a tenant services charge that is made because an additional person becomes a permanent occupant of the rental unit.

Tenant services charge decrease — fewer occupants

140.5.1(3)  If a tenancy agreement includes the provision of tenant services and

(a) one or more of a group of tenants; or

(b) a permanent occupant of a rental unit;

no longer occupies the rental unit, the landlord must decrease the tenant services charge payable under the tenancy agreement by an amount that reflects the value of the reduction in tenant services.

25          Subsection 140.6(1) is amended by striking out "A landlord" and substituting "Except for a reduction in tenant services referred to in subsection 140.5.1(3), a landlord".

26          Subsection 140.7(1) is amended by adding the following after clause (b):

(b.1) increased a tenant services charge in accordance with subsection 140.5.1(1) by an amount that does not reflect the value of the increase in tenant services;

(b.2) failed to decrease a tenant services charge in accordance with subsection 140.5.1(3) by an amount that reflects the value of the reduction in tenant services;

27(1)       Subsection 151(1) is amended

(a) by striking out "the director and"; and

(b) by striking out "the administration of this Act" and substituting "the activities of the commission".

27(2)       Subsection 151(2) is replaced with the following:

Tabling report in Assembly

151(2)      The minister must table a copy of the report in the Assembly within 15 days after receiving it if the Assembly is sitting or, if it is not, within 15 days after the next sitting begins.

28          The following is added after subsection 169(3):

Parties not entitled to copies of certain material

169(4)      If the appeal is from an order of the director made under Part 9, the parties to an appeal are not entitled to have or make copies of

(a) the material forwarded by the director to the commission under section 162; and

(b) any other material filed with the commission, other than a copy of a party's written submission that is intended specifically for the appeal hearing.

29(1)       Clause 194(1)(i) is replaced with the following:

(i) respecting fees and charges for any matter or thing done or service provided by the director or the commission, including the manner in which payment of fees and charges may be enforced, and exempting a class or classes of persons from the requirement to pay fees or charges;

29(2)       Clause 194(1)(i.1) is replaced with the following:

(i.1) respecting late payment fees landlords may charge under subsection 69(4), including exempting a class or classes of persons from the requirement to pay fees or charges and setting out the circumstances for doing so;

29(3)       Clause 194(1)(j.4) is amended

(a) by striking out "increasing" and substituting "respecting"; and

(b) by striking out "increased".

Coming into force — royal assent

30(1)       Subject to subsection (2), this Act comes into force on royal assent.

Coming into force — proclamation

30(2)       The following provisions come into force on a day to be fixed by proclamation:

(a) sections 7, 12 and 15;

(b) subsections 16(2) and (3);

(c) sections 18 and 19;

(d) subsection 29(3).

Explanatory Note

This Bill makes several amendments to The Residential Tenancies Act. The following are the key changes.

  • Landlords are required to use prescribed forms when terminating tenancies to ensure that tenants receive important information about their rights.
  • Authority is given to make regulations allowing the Director of Residential Tenancies and the Residential Tenancies Commission to waive filing fees in certain situations.
  • Authority is also given to make regulations setting out circumstances when late payment fees cannot be charged.
  • Tenants who wish to object to a rent increase that is at or below the guideline increase are required to identify a reason why the increase is not justified.
  • Provisions are added regarding increases or decreases in tenant services charges when there is a change in the number of people occupying a rental unit. A related provision allows for an increase in a tenant services security deposit when a tenant services charge is increased because of an additional occupant.
  • Landlords who plan to do extensive renovations or a rehabilitation must provide tenants with an estimate of the rent that will be charged following the renovations or rehabilitation. The landlord may be required to compensate the tenant for moving and other expenses, if the estimated rent is unreasonable and causes the tenant to move or discourages the tenant from exercising a right of first refusal.

Other amendments include

  • setting out the rights of tenants and landlords to examine material filed in relation to rent regulation applications and clarifying which materials cannot be copied;
  • clarifying the rights and obligations of a tenant and landlord when the landlord wishes to terminate, during the school year, the tenancy of a tenant with a school-aged child;
  • clarifying that the provisions in Part 9 of the Act relating to reducing rent if there is a withdrawal or reduction of service apply only to a permanent withdrawal or reduction; and
  • removing the requirement for the Director of Residential Tenancies to provide a separate annual report, in addition to the report included in the department's annual report.