Agent Blogs

Rent hike

Peter Lee,Record staff

Tenant Greg Armstrong, shown in his unit at 50 Goldbeck Lane in Waterloo, is concerned that some residents may be forced out of townhouses due to an eight per cent rent hike.

Waterloo Region Record

By Paige Desmond 

WATERLOO — A Waterloo landlord has been given approval to hike rents at townhouses on Goldbeck Lane by as much as eight per cent, after arguing the city's rental housing licensing program is a tax that should be passed to tenants.

That's putting the squeeze on residents.

"I think a friend of mine's going to be forced out," said Greg Armstrong. "I think a number of people are going to be forced out.

"We had a big exodus out of here when this was all going down. I should probably look at that myself."

Armstrong lives at one of about 57 townhouse units on Goldbeck Lane affected by the rent increase.

The Landlord and Tenant Board decided the issue in November after a lawyer for landlord Wally Janzen argued the city's licensing bylaw is a municipal tax under definitions in the Residential Tenancy Act that he needed to pass on to residents.

In documents filed with the board Janzen claimed costs of $323,121.46 that he was seeking to recover.

The province's guideline for rent increases in 2016 is two per cent. Janzen received an additional six per cent, according to the board's Nov. 18 decision.

Some tenants absorbed the six per cent hike attributed to licensing fees this year, if they received a notice of rent increase and agreed to pay ahead of the board's decision. With the 2015 guideline hike their total increase was 7.6 per cent.

Those who chose to wait will have the full eight per cent increase in 2016.

Joe Hoffer of Cohen Highley LLP in London, lawyer for the landlord, said the order confirms what many critics feared prior to the passing of the bylaw.

"No other municipality has followed Waterloo's example because they have recognized the devastating financial consequences to tenants," Hoffer said.

Coun. Jeff Henry said he has not heard any concerns that the city's rental bylaw is impacting rents and could not comment specifically on the board's decision.

"The rental licensing program is one where we worked very hard to strike the right balance between the needs of property owners and those residents that are looking for safe, adequate and properly maintained accommodation as well as limiting impacts of large multi-residential units on residential neighbourhoods," he said.

Waterloo's controversial rental housing licensing bylaw limits bedrooms and requires landlords pay fees. It was criticized by landlords who called it a cash grab.

It went into effect in 2012.

The licensing program requires Electrical Safety Authority and other inspections.

The Ontario Human Rights Commission had also raised concerns that the bylaw was discriminatory but those issues were worked out with the city.

Mary Pappert, an executive member of regional tenants' rights group Renters Educating and Networking Together was surprised by the landlord's argument and the board's decision.

She said the tenant group originally supported Waterloo's bylaw but then became uncertain how to feel about it.

"It got to the point where the cost of these inspectors coming in raised the licensing fees so high that it was very difficult for a lot of people," she said.

A review of the licensing bylaw is planned in 2016.

Shayne Turner, director of municipal enforcement, said he wasn't sure if the city would consider how licensing costs may be impacting tenants.

"Based on my understanding I do not believe that the municipality has any jurisdiction with regard to how or what costs a business owner passes on to his/her customers," Turner said.

He added, "Having said this I am sure that this is an item that will be identified by stakeholders during our consultation processes."

Armstrong, Lois Gouliquer and a few other residents at Goldbeck Lane wrote to the tenant board to oppose the increase. They also contacted city politicians.

"They basically said well we're just going to carry on with what we're doing," Armstrong said.

Gouliquer said she worries how residents will pay their bills.

"At this time, anybody that rents, how can you possibly afford a minimum of another $80 a month," Gouliquer said.

In addition to seeking permission for the rent increase, Janzen sought a judicial review of the city's bylaw in Superior Court in December 2014.

It was dismissed earlier this year.

Janzen owns townhouse complexes at 100 Bluevale St. N. and 20 Mayfield Drive with a combined 61 units.

According to court documents, counsel for Janzen argued the bylaw was actually a tax and it amounted to discrimination against families under the Human Rights Code because townhouses are more likely to house families with children than apartment buildings, which are exempt from the bylaw.

In dismissing the judicial review request, costs were awarded to the city in the amount of $50,000.

He plans to appeal the dismissal.

http://www.therecord.com/news-story/6213781-landlord-hikes-rents-blames-waterloo-rental-bylaw/