TENANTS IN HIGH PARK FACE 11.6% RENT INCREASE

FROM DECEMBER 2022 ISSUE OF WEST END PHOENIX

Ben Scott, a tenant at LivMore High Park, received notice that his rent would increase by 11.6 per cent. That increase would bump up his monthly payment by $300, a figure that Scott says would make life unaffordable for him and his son

“I’m a single parent, which means I have one income to support [the two of us],” he wrote in a letter to the West End Phoenix. It’s already a challenge to make this work, as I spend almost 60 per cent of my take-home income on rent.”

Scott, along with neighbours from the two-building complex at 50 High Park Ave., brought his concerns to Queen’s Park on November 24. At a press conference outside the provincial legislature, NDP MPP Jessica Bell noted that 1.4 million households in Ontario are renters. LivMore’s rent increases, she said, could be a sign of what’s to come for tenants in the West End and across Ontario.

LivMore High Park first opened its doors in 2020, during the early months of the pandemic. Like all buildings in Ontario occupied after November 2018, LivMore is exempt from rent control.

The 11.6 per cent rent increase these tenants face far exceeds the provincial cap on rent increases for rent-controlled buildings: 2.5 per cent as of 2023.

LivMore High Park is owned by GWL Realty Advisors. When reached by the West End Phoenix, vice-president of operations Todd Spencer issued a statement regarding this increase:

“The rent increases you referenced for our 50 High Park and 55 Quebec Avenue residents are unfortunately necessary and due to increases in our operational costs such as utilities, maintenance, and staffing,” he wrote. “In addition, our buildings are professionally managed, and we take pride in ensuring improvements are made on a regular basis so they continue to be safe and comfortable places for our residents to live. We recognize that affordability issues are impacting many Canadians and as a general principle, we try to keep our rental rates at or below current market rates.”

Spencer and senior director Todd Nishimura gave WEP a tour of the property. They spoke about providing a premium rental experience for tenants as an alternative to buying a condominium. Spencer repeatedly referenced their goal to “de-stigmatize” renting.

Four years ago, Doug Ford’s Tory government scrapped rent control for units built or occupied for the first time after Nov. 15, 2018. The stated aim of this policy was to address the housing supply shortage by incentivizing developers to build non-rent-controlled buildings. This policy, along with the “Strong Mayors, Building Homes” Act, which aims to build 1.5 million new homes in 10 years, is the Ford government’s prescription for Ontario’s housing crisis: Create more supply to meet demand, and prices should theoretically drop.

Critics say scrapping rent control is not a cure-all housing policy lever. More than 30 years ago, Mike Harris’s Tory government dispensed with rent control for buildings constructed after 1991 (though all private rental units were briefly rent controlled from 2017 to 2018 under the Wynne government). According to Social Planning Toronto and Rental Housing Business, this did not have the intended consequence of increasing purpose-built rental supply to fulfill demand.

GWL justifies the rent increase at LivMore by saying they have a fiduciary duty to their investors. But tenants like Scott say this is pure greed in the middle of a housing crisis.

The LivMore High Park Tenants’ Association, which organized in response to the increase, has collected more than 150 testimonials from residents who say that they can’t manage the hit to their finances; 30 per cent of the tenants who occupy the complex have signed on to the tenant organization’s mailing list.

According to Nishimura, LivMore tenants are facing 5 to 12 per cent increases to their rents. One demand from the tenants’ association is to make the percentage of rent increase the same for all tenants. Spencer held fast that each unit’s increase would rise to reflect market value, though rent increases would vary depending on the terms of the lease (the rent increase percentage would be higher for a month-to-month lease than a year-long one).

Stories of double-digit rent increases in the West End aren’t limited to High Park. Residents of the Litho building at Christie and Dupont faced 13.4 per cent rent increases earlier this year. The owners of this building, RioCan Living, also cited market conditions by way of explanation.

At a LivMore High Park Tenants’ Association meeting, Scott described their situation as being a “canary in a coal mine.” He expects more buildings will start to take advantage of this exemption post-pandemic.

When he addressed the crowd at Queen’s Park, his question was a worried one: “Where are we supposed to go?”