Building owner Castle Mountain Properties has decided not to go ahead after a meeting with the Saskatchewan Rental Housing Industry Association.
The association says the Calgary-based company didn't realize that increases of more than 10 per cent are not typical.
The association suggested making smaller increases over a longer period of time would cause less hardship for tenants.
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Castle Mountain Properties says in a letter that it will contact tenants in the near future.
One senior had said that the rent on her small two-bedroom apartment was to go up to almost $1,200 a month from $675.
"Once informed of what's 'normal,' the owner chose to quickly withdraw the offensive increases," the rental association said Tuesday in a news release.
"Moving forward they have proposed that they will talk with tenants on an individual basis to establish an action that can be agreeable to the tenant yet achieve the goal of market value for the building."
Several tenants in the building went to the Saskatchewan legislature last week to plead for help. They suggested the province should bring in rent controls.
Justice Minister Gord Wyant said that was not something he would consider because it would be a "disincentive to improving properties."