The previous day, they told their property manager that they would not agree to increase their rents from $ 700 a month to $ 900 for one unit and $ 1,000 for the other, from August 1st.
These increases will far exceed the 3.8 percent rent ceiling announced by the New Brunswick government on March 22 budget day.
Bill 96, a law amending the Housing Leases Act, was tabled on March 29th and is widely expected to be passed into law. When this happens, it will be valid retroactively from January 1 and will be valid until December 2022.
Jennifer Taylor thought this meant she could safely refuse to pay a nearly 30% increase.
Instead, she received a eviction notice informing her that her Hampton apartment would be converted to Airbnb on May 1.
“Now we have to start packing and looking for a place that is so affordable,” said Taylor, who lives with her two teenage children.
Michelle Cheslock, who lives on the other side of the duplex, told a similar story. Having said no to a rent change from $ 700 to $ 1,000, she will also be evicted.
New owners
The building 27-29 Acadia Cres. changed hands in December.
According to Service New Brunswick records, the buyers are Kevin Hagerman and Isobelle Reid Marianne from Huntsville, Ont. They paid $ 325,000 for the property, which is valued at $ 179,500.
Taylor said she received her first rental notice almost immediately, seeking a $ 1,000-a-month increase from April 1.
The county then amended the lease law, requiring landlords to give a six-month notice of increase.
Then last month, the province promised further rent controls, with a ceiling of 3.8%.
Taylor said the property manager tried to persuade her to ignore this ceiling and voluntarily pay more.
He said he received a phone call on March 30 from Karen Sharp, president of Leading Edge Property Solutions.
“He calls and says, ‘I’m sure you’ve heard of the county rental ceiling.’ “It will only allow us to increase the rent by $ 25, but it will not work for the landlord,” Taylor said.
“Well, then he asks if I would be willing to pay $ 900 a month from August? I said ‘No’.”
The very next day, an eviction notice was stuck at her door.
Service New Brunswick records show 27-29 Acadia Cres. in Hampton, valued at $ 179,500, sold for $ 325,000 in December to an Ontario buyer. (SNB Property Valuation)
Sharp did not give an interview. Instead, CBC News quoted its chief operating officer, Alex Urosevic, as saying he had permission from Hagerman to comment on the situation.
Urosevic described Hagerman as an honest man who was taken by surprise by a government decision that suddenly made his investment in Hampton unsustainable.
“If this gentleman had bought his property after the law was passed, I would have said, ‘Well, you are alone,’” Urosevic said. But that was not the case, he said, and with the lid on, his client’s numbers suddenly did not work.
That is why he decided to “change his business model,” Urosevic said.
“What it is going to do is turn all the units into short-term rental units. These will be short-term rental units that people can rent whether they are on holiday or in the city for business. There will be no limit to whether they can stay for a while. a week or a month or three months or if one needs to stay longer “.
The duplex at 27-29 Acadia Cres. in Hampton is located in a residential area, according to Arthur McCarthy, the city’s building and development manager. Accommodation, such as a short stay for travelers, requires a shopping area. (Submitted by / Jennifer Taylor)
Taylor said she still believes there is something that can stop this.
He believes that it can be zoned.
Airbnbs does not explicitly refer to the definitions of the Hampton Articles of Association.
Right now, 27-29 Acadia Cres. is residential in zones, according to the city’s building and development manager, Arthur McCarthy.
Accommodation, designated as hotels, motels, bed and breakfasts and other traveler accommodation, is only permitted in Hampton Shopping District.
McCarthy said the landlord could apply to City Council for a zoning change, which could take three to six months.
“Everyone does it”
Urosevic said the province was wrong with buyers with a closed rent limit that had been rejected in the past. In May, a review of the county rental market ruled out rents in all but the most extreme cases. He said he knows buyers leaving the deals because of the surprise. He also knows buyers who acquire real estate anyway, with “complete intention to evict the entire building and make the so-called renovations”. “Everyone does that,” he said. “I can tell you about 20 properties that do this because their hands are tied behind their backs [by this cap]. “ Urosevic said Hagerman plans to make significant upgrades to his property that could exceed $ 100,000. That includes spending $ 35,000 on a third unit to make it sustainable again. Urosevic said he was left in a rather rough shape. He said three-bedroom units with a private patio, private parking and laundry facilities in this part of Hampton should fetch $ 1,200.
Landlords can terminate Airbnbs leases with proper notice
Cheslock and Taylor said this was not the rent when they moved in and waited for the protection promise to take effect.
They both contacted the tenant for advice, but as of Friday, Cheslock had never heard of it and Taylor was waiting for answers.
The CBC asked to speak with the county’s chief renter, Jennifer Bernier, but she was not available.
In an email to the CBC, a department spokesman wrote that Airbnbs does not fall under the rental court law because they are not rented or rented out.
“According to the law, landlords can terminate leases if they intend to convert the property to Airbnb, provided that due notice is given to tenants,” the spokesman wrote.
“For monthly leases, the landlord must provide one month written notice and for year-to-year leases, the landlord must provide three months written notice.”
title: “Hampton Tenants Pushed Out Of Homes For Airbnb After Landlord Thwarted By Rent Cap " ShowToc: true date: “2022-11-10” author: “Evelyn Shanks”
The previous day, they told their property manager that they would not agree to increase their rents from $ 700 a month to $ 900 for one unit and $ 1,000 for the other, from August 1st.
These increases will far exceed the 3.8 percent rent ceiling announced by the New Brunswick government on March 22 budget day.
Bill 96, a law amending the Housing Leases Act, was tabled on March 29th and is widely expected to be passed into law. When this happens, it will be valid retroactively from January 1 and will be valid until December 2022.
Jennifer Taylor thought this meant she could safely refuse to pay a nearly 30% increase.
Instead, she received a eviction notice informing her that her Hampton apartment would be converted to Airbnb on May 1.
“Now we have to start packing and looking for a place that is so affordable,” said Taylor, who lives with her two teenage children.
Michelle Cheslock, who lives on the other side of the duplex, told a similar story. Having said no to a rent change from $ 700 to $ 1,000, she will also be evicted.
New owners
The building 27-29 Acadia Cres. changed hands in December.
According to Service New Brunswick records, the buyers are Kevin Hagerman and Isobelle Reid Marianne from Huntsville, Ont. They paid $ 325,000 for the property, which is valued at $ 179,500.
Taylor said she received her first rental notice almost immediately, seeking a $ 1,000-a-month increase from April 1.
The county then amended the housing lease law, requiring landlords to give a six-month notice of increase.
Then last month, the province promised further rent controls, with a ceiling of 3.8%.
Taylor said the property manager tried to persuade her to ignore this ceiling and voluntarily pay more.
He said he received a phone call on March 30 from Karen Sharp, president of Leading Edge Property Solutions.
“He calls and says, ‘I’m sure you’ve heard of the county rental ceiling.’ “It will only allow us to increase the rent by $ 25, but it will not work for the landlord,” Taylor said.
“Well, then he asks if I would be willing to pay $ 900 a month from August? I said ‘No’.”
The very next day, an eviction notice was stuck at her door.
Service New Brunswick records show 27-29 Acadia Cres. in Hampton, valued at $ 179,500, sold for $ 325,000 in December to an Ontario buyer. (SNB Property Valuation)
Sharp did not give an interview. Instead, CBC News quoted its chief operating officer, Alex Urosevic, as saying he had permission from Hagerman to comment on the situation.
Urosevic described Hagerman as an honest man who was taken by surprise by a government decision that suddenly made his investment in Hampton unsustainable.
“If this gentleman had bought his property after the law was passed, I would have said, ‘Well, you are alone,’” Urosevic said. But that was not the case, he said, and with the lid on, his client’s numbers suddenly did not work.
That is why he decided to “change his business model,” Urosevic said.
“What it is going to do is turn all the units into short-term rental units. These will be short-term rental units that people can rent whether they are on holiday or in the city for business. There will be no limit to whether they can stay for a while. a week or a month or three months or if one needs to stay longer “.
The duplex at 27-29 Acadia Cres. in Hampton is located in a residential area, according to Arthur McCarthy, the city’s building and development manager. Accommodation, such as a short stay for travelers, requires a shopping area. (Submitted by / Jennifer Taylor)
Taylor said she still believes there is something that can stop this.
He believes that it can be zoned.
Airbnbs does not explicitly refer to the definitions of the Hampton Articles of Association.
Right now, 27-29 Acadia Cres. is residential in zones, according to the city’s building and development manager, Arthur McCarthy.
Accommodation, designated as hotels, motels, bed and breakfasts and other traveler accommodation, is only permitted in Hampton Shopping District.
McCarthy said the landlord could apply to City Council for a zoning change, which could take three to six months.
“Everyone does it”
Urosevic said the province was wrong with buyers with a closed rent limit that had been rejected in the past. In May, a review of the county rental market ruled out rents in all but the most extreme cases. He said he knows buyers leaving the deals because of the surprise. He also knows buyers who acquire real estate anyway, with “complete intention to evict the entire building and make the so-called renovations”. “Everyone does that,” he said. “I can tell you about 20 properties that do this because their hands are tied behind their backs [by this cap]. “ Urosevic said Hagerman plans to make significant upgrades to his property that could exceed $ 100,000. That includes spending $ 35,000 on a third unit to make it sustainable again. Urosevic said he was left in a rather rough shape. He said three-bedroom units with a private patio, private parking and laundry facilities in this part of Hampton should fetch $ 1,200.
Landlords can terminate Airbnbs leases with proper notice
Cheslock and Taylor said this was not the rent when they moved in and waited for the protection promise to take effect.
They both contacted the tenant for advice, but as of Friday, Cheslock had never heard of it and Taylor was waiting for answers.
The CBC asked to speak with the county’s chief renter, Jessica Bernier, but she was not available.
In an email to the CBC, a department spokesman wrote that Airbnbs does not fall under the rental court law because they are not rented or rented out.
“According to the law, landlords can terminate leases if they intend to convert the property to Airbnb, provided that due notice is given to tenants,” the spokesman wrote.
“For monthly leases, the landlord must provide one month written notice and for year-to-year leases, the landlord must provide three months written notice.”
