There is a cap on how much a landlord can raise a tenant’s rent each year, which the province recently more than doubled to 2.5 percent for next year. However, provincial law allows landlords to evict tenants if they undertake major renovations to a unit, and there is no rule barring landlords from raising rent between tenants.
A report, written by the city’s top housing official, notes the growing trend of “renovations” in Toronto and explains the practice of a landlord illegally evicting a tenant by claiming they need a permit to occupy a residential unit to undertake renovations or repairs.
Once the unit is vacant, the landlord can raise the rent to market value.
The result of these “renovations” is to reduce the supply of affordable housing, writes Abigail Bond, executive director of the housing secretariat. This comes as a new report finds that rent prices are skyrocketing in Toronto, increasing by 20 per cent in the last year.
“The primary goals of these activities are to maintain the city’s affordable and mid-range rental housing supply and support tenants at risk of eviction,” Bond said.
While the policy and possible future law cannot actually stop “renovations” since it would be under the province’s jurisdiction, they will “leverage city authorities” to prevent the practice.
Ontario NDP housing critic MPP Jessica Bell pointed out how a lack of oversight in this department has contributed to skyrocketing rent prices.
“People in Ontario are stuck in the middle of a housing crisis, and Doug Ford’s insistence on allowing landlords to raise rents unchecked among tenants is contributing significantly to driving up rents in the market,” he said in a statement Tuesday.
He also pushed the Ford government to pass the NDP’s Rent Stabilization Act, which would ensure new renters pay the same price as previous renters. “The NDP is committed to passing this legislation as a step toward addressing Ontario’s housing crisis, and we will be bringing it back to the Legislature next session,” Bell said.
The report before the city council recommends an educational approach to tenants’ rights along with enforcement efforts to investigate violations and take appropriate action. Bond said this could serve as a gateway to a “whole of government” approach.
“Actions are urgently needed by the federal and provincial governments to implement systemic and structural changes, outside of municipal jurisdiction, to address the root causes of evictions,” Bond said.
