Stupid Ontarians that voted for this Conservative to run their province . . .
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Fri., Nov. 22, 2019 - Toronto Star
The Ford government removed rent control on new units. A year later tenants are reporting double-digit increases
It’s been a year since the Ford government scrapped rent control for new buildings, and a wave of tenants are facing a new reality without rent control — with some reporting notices of double-digit increases.
The Progressive Conservatives touted the amendment to the Residential Tenancies Act — which exempts units from rent control that had not been previously occupied before Nov. 15, 2018 — as a way to incentivize investors to build more properties and increase housing supply in a market that is facing a crisis. But industry experts have warned that the policy is likely to lead to more tenants being evicted as they face exorbitant rent increases.
Davica Persaud and her partner lived in their one-bedroom apartment for just over seven months when they received an informal notice from their landlord about a rent increase.
The landlord at her Weston area building was proposing two options: starting March next year (when their lease will be up for renewal), the tenants, who currently pay $1,650 a month, have to choose between either signing another 12-month lease at $1,757 — representing a 6.5 per cent jump — or moving to a month-to-month deal that would bring rent to $2,007, a 21.6 per cent hike.
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Persaud was one of more than 70 tenants at 22 John St., a 30-storey building near Weston Road and Lawrence Street West, who convened Wednesday evening for a meeting to discuss uncontrolled rent increases. Those who moved into the building last February and March had started receiving notices from the landlord, asking them to choose between a 12-month lease or a month-to-month deal, with proposed increases ranging anywhere from six to 25 per cent.
Under the RTA, tenants are automatically moved to a month-to-month system after the initial lease expires. The maximum provincial guideline for rent increases in Ontario for 2020 is set at 2.2 per cent, but because 22 John St. is a new rental property, the rent increase guideline doesn’t apply.
On Friday afternoon, a spokesperson for the building’s ownership group told the Star the company was removing the month-to-month “premium.”
“Upon further reflection, ownership has decided that its leasing goals can be achieved through means other than applying a premium on month-to-month rent renewals,” Danny Roth wrote.
“The handful of affected tenants will be advised today that this policy is no longer being pursued, and that market-rental tenancies — irrespective of term — will be offered at comparable rental rates, commensurate with market forces.”
Earlier that day, Roth had told the Star the “two-tiered pricing approach” was meant to promote long-term residencies, saying “short term lease agreements contribute to greater instability in the market and rent inflation.”
According to Roth, tenants who opted for a yearlong lease would still face an increase of up to 10 per cent, adding that monthly housing costs at the property are still below what units are going for in Toronto.
“I know business is business, but this is absolutely crazy. It’s not within reason,” said Persaud on Wednesday. The original notice had warned her that not choosing between the two options would serve as an indication to terminate the tenancy.
On Friday, Chiara Padovani, a community advocate with the York South-Weston Tenant Network who helped organize the tenants meeting, said management’s decision to quash the premium was a welcome move that shows the tenant pressure is working. But it still isn’t enough.
“What we and these tenants are fighting for is a fair rent increase, and that is 2.2 per cent next year,” she said.
Linda Viselli, 52, who uses a wheelchair and moved in her two-bedroom apartment last June, had yet to receive a notice of increase but attended the meeting as she feared for future rent hikes, noting she has nothing against building owners making money but it should be within reasonable boundaries.
“That’s wonderful,” she said of the landlord’s decision Friday to drop the higher increases.
“I hope we get to actually see that,” she said. “I hope we get to see the legislation changed.”
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Councillor Josh Matlow (Ward 12 Toronto-St. Paul’s) said Friday evening he would be moving an emergency motion at council for his colleagues to reconsider that request.
“Council has allowed developers to take advantage of millions of tax dollars to create affordable housing and then be able to turn around and hike rents on unsuspecting tenants,” Matlow said.
On Thursday, before management removed the rent increase premium, the issue of uncontrolled rent increases served to tenants at 22 John St. was raised at Queen’s Park.
“I don’t know about you but most people I know simply cannot afford a rent increase that high. How can the premier justify such steep rent increases, all in the name of rolling out the red carpet for his developer friends?” asked NDP MPP and tenants’ rights critic Suze Morrison.
“Will the premier rise in this house today and commit to reversing the cuts to rent control?” added York South-Weston NDP MPP Faisal Hassan.
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