Key Takeaways
- Tenants in a midtown low-rise building in Toronto are facing a significant rent increase of over 5% due to an above-guideline rent increase (AGI) application by their landlord.
- The landlord, Westbury Rental Residences, claims to have made improvements to the building, including a new boiler and hot water system, but tenants say these improvements have not materialized.
- The rent increase is retroactive to January 2024, and tenants will have to pay back rent, which they claim will have a significant impact on their finances.
- The tenants felt pressured and coerced into accepting the deal during mediation, and they regret not seeking legal representation beforehand.
- The case highlights the importance of tenants doing their homework and seeking legal help before attending a Landlord and Tenant Board (LTB) hearing.
Introduction to the Issue
Tenants in a midtown low-rise building in Toronto are facing a significant rent increase due to an above-guideline rent increase (AGI) application by their landlord, Westbury Rental Residences. The tenants, who live in a building on Mallory Gardens in the Yonge Street-St. Clair Avenue area, were told in September that their rents would be increasing by roughly 5% in 2026, which is more than twice the province’s allowable increase of 2.5% this year. The landlord claims to have made improvements to the building, including a new boiler and hot water system, but tenants say these improvements have not materialized.
The Landlord’s Application
The landlord’s application for an AGI was made on the grounds that they had made improvements to the building in the past 18 months. The application notes that the landlord has added a new boiler and hot water system, among other things. However, tenants who spoke with CBC Toronto said that hot water in their units continues to be unpredictable. The application also notes restoration work on the underground garage, but tenants say that only one unit is allowed to use it. The tenants feel that they have been hit with a massive rent increase in exchange for repairs to a garage they don’t have access to and repairs to a boiler that still provides intermittent hot water.
The Tenants’ Experience
The tenants took their concerns to the Landlord and Tenant Board (LTB) earlier this month and agreed to mediation. However, they now regret that move, saying they were told by the mediator at the end of a four-hour session that most of the landlord’s rent increase request would be granted. The tenants will now also have to pay back rent, since the AGI request is backdated to January 2024. The tenants, led by Tory Woolcott and her husband Kean Soo, told CBC Toronto they felt rushed and pressured by board staff at the hearing. They felt coerced and bullied into accepting the deal, and they claim that the landlord came down from an initial AGI ask of 4.3% to 4.25%, retroactive to January 2024.
The Landlord and Tenant Board’s Role
A spokesperson for the LTB would not comment on the case, as it’s before the board until a formal statement is issued outlining the settlement. However, Veronica Spada said in mediation hearings, tenants can access a duty counsel if they desire. Soo said he and his fellow tenants weren’t made aware of this service. The LTB can grant AGIs to landlords for work they’ve done on their building within the previous 18 months. The board can allow an increase, over and above the benchmark rent increase landlords are allowed each year, if the landlord can show how much they’ve spent improving their building.
The Importance of Seeking Legal Help
The case highlights the importance of tenants doing their homework and seeking legal help before attending an LTB hearing. Wendy Morrow, a tenant organizer with the Federation of Metro Tenants Associations (FMTA), advises tenants to double-check the numbers the landlord is providing in the application and to check the supporting documents. Paralegal Sean O’Connor, who specializes in landlord-tenant cases, agrees, saying that tenants should not attend a hearing without legal representation if possible. He warns that LTB hearings can be complex, and tenants should seek expert help to navigate the process.
The Broader Implications
The case is not an isolated incident, as Morrow says that AGIs like the one the Mallory Gardens tenants are facing are becoming increasingly common across the city. She says her caseload includes 270 buildings where tenants are facing similar problems, and two other staffers at the FMTA have similarly thick files. The case highlights the need for tenants to be aware of their rights and to seek help when dealing with landlords and the LTB. It also highlights the need for greater transparency and accountability in the LTB process, to ensure that tenants are not taken advantage of by landlords.
