Recent times presented a number of issues on an individual/community and global scale. Most, subjected to act from a place of survival mode (as one’s abilities to earn a living have been compromised).
My intention in sharing this story is not to vent about what frustrates me in regards to renting/rent increases but to build awareness on the “legality” of Rental Corporations, Terra Corp, Owen Sound.
On September 1, 2020, Residents at Victoria Towers (operated by Terra Corp) were issued Letters of Rent Increase.
Step back, the context to this story:
*I have moved into this residence less then 2 years ago (2018).
*2018, my rent was almost $200 more per month then someone of the same unit having moved in few months prior).
*In 2019, Terra Corp issued/implemented a significant rent increase, including: 2.2% Maximum/Allowable Yearly Rent Increase. Plus, 3%, The Capital Costs allowable Rent increase. The Capital Cost Rent Increase was approved based on having replaced the roof. (Note: The roof needed to be repaired or replaced for a number of years prior, as many residents on the top floor were dealing with leaking ceiling/floor floods/mold).
*Shortly after I had moved in to Victoria Towers, I received the letter of rent increase and a scheduled Landlord & Tenant Board Hearing. Naively, I believed that the purpose of the Hearing was to address the ‘Approval’. Clearly, I had many questions:
Replacing a Roof-Must be a Maintenance Issue/a Cost of running a business/planned and projected and budgeted costs of improving/maintenance?
The Capital Costs Rent Increase must have a time frame in effect?
Specific to myself: Having moved in after the work of replacing the roof had been done and my rent being significantly higher then other renters, surely, my rent reflected the increase?
What is Terra Corp Legal Team prepared to negotiate in regards to percentages?
*2019, Landlord & Tenant Hearing; Legal Team took a recess to ponder their response/position and upon return, advised:
-Roof Replacement is an acceptable/meets criteria of Capital Cost Rent Increase.
-Capital Costs Rent Increase is implemented for 10 years/time required for full repayment (likely, corresponding to another need/roof replacement and subsequently, another capital costs rent increase).
-In direct response to my situation, Terra Corp Legal Team agreed that this does not effect me as I did move in after the date roof was completed.
-Regarding the Legal Team Negotiating position; I was asked/advised that I have no further ‘say’ during the Hearing as this no longer applies to my case.
*From memory, I believe the capital costs rent increase was decreased by merely 0.5%.
Now, present day, Terra Corp issued Letters of Rent Increase (effective December 1, 2020). Rent Increase including:
2.2% ‘Maximum’ Rent Increase ‘Allowable’ per year. Plus, 3%. Capital Cost Rent Increase (additional time 2.2%). Representing, 5.2% increase in Monthly Rent/Month/Residence; effective December 1, 2020.
Subject to Landlord & Tenant Hearing. Note, the letter did not note the scheduled date for said hearing.
Curious, I asked the Supervisor of the building tasked with this notice and securing residents signatures acknowledging receipt: What are the Capital Costs identified/supporting the increase?
Initially, the supervisor presented reluctant to provide a response but when prompted further suggest, work done on the balconies is identified in the Capital Costs Application. (Note: Was the balcony work required/was it a hazard/cosmetics? During the commission of this work, residents were without access to their balconies for approximately 4+ months with no rent adjustments).
In summary,
Terra Corp significantly increases rent in 2018 (by approximately $200/month/unit).
Terra Corp significantly increased rent in 2019 by 5.2%.
Terra Corp significantly increasing rent December 1, 2020 by another, 5.2%.
Also, currently, informed that the elevator is scheduled to be replaced soon (another Capital Cost Improvements/Rent Increase pending? Further to the serious issue of accessibility/accommodation for many residents?).
I have contacted our local Legal Clinic and the reality/legal reality is;
Terra Corp is/has met the legal requirements for Capital Costs Rent Increase of 3% above/in addition to 2.2% per year.
Residents/Renters have ‘no’ say in the work that a Corporation does in their improvements/ improvement plans. The requirement demands only proof of work done.
Residents/Renters have no authority in getting The Landlord & Tenant Board to overturn the Landlord ‘application/request’.
The best case scenario , Residents unite and request (nicely please) for the Capital Costs Rent increase to be lowered from the 3% to possibly 2.5 or 2%.
Though, Terra Corp may be acting in a “Legal” manner, I am suggesting, this type of Landlord/Corporation actions are in fact ‘Criminal’ and most of all, ‘Unethical’.
Let me leave you with few more thoughts to ponder:
Terra Corp displays discrepancies in their rent prices advertising; examples: 1. Advertised rentals for Hanover and Owen Sound are significantly different for same set up units, Owen Sound Rent being significantly higher. 2. Advertised Rent Amounts have been fluctuating, just couple months ago they were decreased (correlating with decreased demand/higher vacancy rate) and as of now, rent prices have gone back up as some vacancies have been filled and demand for units may be higher.
The vast majority of residents at Victoria Towers are older/individuals & families on fixed income/individuals with disabilities (medical benefit)/recently, unemployed or adjusting to lower incomes (reduced work hours).
Thank you everyone for reading (sorry for being so wordy). Though I do understand, many of you are in your own survival mode and compassion for others might be compromised. Despite the challenge, I hope that I presented this story/issue as a significant concern pertaining to the legality of system(s) that favour the corporations/for profit business models at all costs. The issue is bigger then “I” and my personal frustration. Hopefully, you share my concerns in recognizing the negative/devastating impact on those most vulnerable/the individuals & families affected/the potential community impact (increases demands for shelter/food & decreased local ability to attract new residents into a Owen Sound). Yes, all these local issues while else where, major cities (like Toronto) have been significantly lowering rent in their areas (areas where infrastructure of employment/education/transportation/resources are well established).
My concern, within the current approach/system(s), the vulnerable members of our community are subjected to live in fear of being displaced from their homes.
Further to raising awareness and giving a voice to those affected, I do not know and I find myself unable to offer a solution?
Regards,
Hon Jones
Owen Sound
