Manitoba Above-Guideline Rent Increase: How to Apply With Form 3

The annual guideline caps most Manitoba rent increases at 1.8% for 2026 and 3.0% for 2027. When a landlord's operating costs or capital expenses spike well beyond those percentages, the Residential Tenancies Branch allows an above-guideline increase — but only through a formal application process with strict accounting rules.

When an AGI Makes Sense

An above-guideline increase (AGI) covers costs that the standard guideline was never designed to absorb. The Residential Rent Regulation (M.R. 156/92) limits eligible expenses to three categories:

1. Major capital expenditures — roof replacement, elevator modernization, window replacement, heating system overhauls, building envelope work, security upgrades
2. Extraordinary operating cost surges — verifiable spikes in property taxes, utilities, insurance premiums, or contracted security services
3. New or expanded tenant services — adding significant amenities like fitness facilities or security infrastructure

The regulation separates operating expenses, capital expenses, service changes, and mortgage interest. Do not classify every repair or painting invoice as a capital expense: Section 9 sets out which capital costs qualify and which percentage of certain listed items may be included. Eligible mortgage interest may be included under Section 10, subject to its financing limits.

Filing Form 3

The landlord files Form 3: Application for Rent Increase Above Amount Permitted by Regulation with the RTB. Key parameters:

• Filing fee: $150 for complexes with 19 or fewer units; $500 for 20 to 49 units; $500 plus $5 per unit for 50 or more units, capped at $1,000
• Timing: file the application no later than 14 days after the beginning of the three-month notice period for the first increase in the application
• Accounting periods: provide two consecutive 12-month periods; the last day of the current period must be at least 3 months and no more than 14 months before the first increase takes effect
• Supporting documents: invoices, cancelled cheques, work orders, contractor receipts

The landlord must also serve Form 1A on all affected tenants at least three full calendar months before the effective date, disclosing that an AGI application will be filed.

Capital Expense Rules

Only the portion of a capital expense allowed by the regulation enters the AGI calculation. M.R. 116/2026, in force from October 30, 2026, changed the allowable percentages for listed items in Section 9(1.2) to 20%, 15%, 10%, or 7.5%, depending on the item.

Expenses that benefit the whole complex are allocated under the regulation's formula. If some units are exempt, common expenses are prorated by the ratio of units included in the application to all units in the complex. The total increase is then allocated among units as an equal percentage or equal dollar amount.

A commonly missed claim: landlords who self-manage can include a 5% management fee allowance on gross revenue. Many AGI applications leave this on the table.

What Happens After You File

The RTB audits the financial documentation, then notifies affected tenants and gives them access to inspect the landlord's filed evidence. Tenants must submit written objections at least 60 days before the proposed effective date.

While the application is pending, tenants are not required to pay the proposed above-guideline portion until the Director issues an order. The RTB discontinued its prior policy requiring payment before an order.

Once the RTB issues its order, the order sets the rent and its effective date. If the order sets a lower amount than the tenant paid, the landlord must refund the overpayment under the Act.

Avoiding Rejection

Common problems include claiming routine maintenance as capital, missing the Form 3 deadline, submitting incomplete reporting periods, or failing to document a line item. A late application is not automatically rejected: the RTB says the landlord can reduce the request to the guideline amount or postpone the effective date and give tenants new written notice. If the landlord makes no choice, an officer may issue an order setting the rent.

The Manitoba Rent Increase Landlord's Guide includes an AGI expense allocation worksheet that mirrors the Form 3 schedules, with pre-filing verification steps to catch disallowed expenses before the RTB does.

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