Toronto Tenants Triumph in Fight Against Unjust Rent Hike

UPDATE: Tenants in three rental buildings in Toronto have just achieved a significant victory against an unjust above-guideline rent increase (AGI) that they argued was improperly based on redevelopment costs. The Landlord and Tenant Board ruled that environmental work conducted by the landlord in 2021 did not qualify for the AGI, marking a pivotal moment for renters.

In a decision released in early July 2023, the board validated two of the landlord’s claims regarding necessary repairs but dismissed the third claim related to “site remediation,” which accounted for nearly half of the claimed costs. The ruling determined that this remediation work, costing about $295,000, did not meet the criteria for capital expenditures.

“I was ecstatic,” said Amy Nyp, a tenant who has lived on Greentree Court since 2015. “The site remediation is where we were like, ‘This doesn’t make sense.'”

This decision is a major breakthrough, as it sets a precedent that similar environmental expenditures will not automatically justify higher rents in the future. However, concerns linger among tenants regarding the potential redevelopment of the site.

The landlord, QMW Corp, took over the AGI application when it became the owner in October 2021. The company argued that the work was necessary due to soil contamination and compliance with city housing standards. However, the board’s adjudicator concluded that QMW failed to demonstrate the necessity of the remediation for Environmental Protection Act compliance.

The AGI was originally proposed at 3.8%, citing approximately $647,000 in total capital expenditures. Following the ruling, the AGI was reduced to 2.27% for two buildings, including Nyp’s, and 2.11% for the third. Nyp estimates her rent will increase by just over $20 monthly, requiring her to repay around $900 in back rent over the next six months.

Tenant advocate Chiara Padovani, co-chair of the York South-Weston Tenant Union, hailed the ruling as a triumph for all renters. “This is a major victory for tenants because it shows that landlords cannot abuse this process by trying to squeeze in a quarter of a million dollars of completely ineligible expenses,” she stated.

While the ruling is celebrated, many tenants remain anxious about the future of their homes. Internal documents previously uncovered indicated plans for the site to undergo renovations aimed at increasing rental income, with a strategy to sell the property by 2028.

“I’m trying to make a backup plan just in case, but I know if the redevelopment stuff comes, we’re still gonna fight,” Nyp said. This experience has empowered her and her fellow tenants, reinforcing their commitment to organizing against potential threats to their housing stability.

As the situation develops, tenants and advocates will be closely monitoring any further actions from QMW Corp and the implications for rental practices in Toronto. This landmark decision could reshape how landlords approach AGIs related to environmental work, providing a crucial precedent for renters across the region.

Stay tuned for updates on this unfolding story as it impacts tenants’ rights and housing stability in Toronto.