Toronto’s top housing manager is calling for an end to the loophole that allows landlords to increase rents between tenants as part of a new “renovation” policy that the city council will consider today.
There is a limit to how much a landlord can increase a tenant’s rent each year, which the province recently goes on to more than double to 2.5 percent for next year. However, provincial law allows landlords to evict tenants if they are making major renovations to a unit and there is no rule prohibiting landlords from increasing rent between tenants.
A report, drafted by the city’s top housing manager, points to the growing trend of “renovations” in Toronto and explains the practice as a landlord illegally evicting a tenant alleging he needs empty possession of a residential unit for renovations or repairs.
Once the unit is empty, the landlord can increase the rent to market value.
The result of these “renovations” is a decrease in the supply of affordable housing, writes Abigail Bond, executive director of the housing secretariat. This comes when a new report finds that rental prices are skyrocketing in Toronto, rising 20 percent over the past year.
“The main goals of these activities are to preserve the city’s supply of affordable, mid-range rental housing and help support tenants who are at risk of being evicted,” Bond said.
While the policy and future potential statute cannot stop “renewals,” as this would be under the jurisdiction of the province, “they would take advantage of the city authorities” to deter the practice.
Ontario NDP housing critic Jessica Bell noted how this department’s lack of oversight has contributed to rising rental prices.
“People in Ontario are in the midst of a housing crisis, and Doug Ford’s insistence on allowing landlords to raise rent uncontrollably among tenants is a major factor in raising market rental prices,” he said. say Tuesday in a statement.
He also pushed for the Ford government to pass the NDP Rent Stabilization Act, which would ensure that new tenants pay the same price as previous tenants. “The NDP is committed to passing this legislation as a step in addressing the Ontario housing crisis, and we will re-introduce it to the Legislature next session,” Bell said.
The report presented to the city council suggests an educational outreach on tenants ’rights along with enforcement efforts to investigate the violations and take appropriate action. Bond said this could serve as an input to a “government-wide” approach.
“Actions from the federal and provincial governments are urgently needed to implement systemic and structural changes, outside of municipal jurisdiction, to address the root causes of evictions,” Bond said.