At our last meeting, we discussed the possibility of Above Guideline Rent Increases (AGIs). We know that the landlord is only able to increase rents once a year, and since they have already given us all notice of the rent increasing for January 2023, we know that we are in the clear for at least 2023. Additionally, we know that there are strict guidelines on how much the landlord is allowed to increase the rent each year.
However, according to the CBC, there has be an "Explosion of above guideline rent increases" We have also been warned about AGIs by renovictionsTO and the FMTA. Landlords all over Toronto like to think that superficial "building upgrades" warrant rent increases of hundreds of dollars. When landlords don't have enough turnover in tenants, and when their renoviction efforts fail, they resort to going to the Landlord Tenant Board (LTB) to apply for Above Guideline Rent Increases
Many tenants have noticed that at the bottom of the letters we received from the landlord this week, it was stated that "We wanted to let you know that we have started doing some upgrades to the common areas of some buildings including lighting, electrical and cosmetic upgrades." This is precisely the language that other landlords have used in the past ("cosmetic upgrades") to apply for AGIs.
We also know from Addy's Offering Memorandum for Wingreen Court that they had already accounted for rent increases regardless of tenants accepting the Termination of Tenancy Offers. On page 9 of that document, they state "The Partnership intends to engage in a five-year renovation program of the Property. The Partnership plans to renovate the buildings and increase the below market rents [...] over the course of 5 years."
We have a strong suspicion that AGI is the landlord's back-up plan for when they fail in their renoviction efforts.
We have to remember that the landlord is not in the business of being a landlord, but a real estate investment app. They do not care about the human element, and whether or not we are driven to homelessness for the sake of their many millions of dollars of profit.
But there is hope yet! Across Toronto, the power of Collective Action has led to very successful campaigns in defeating AGIs. Our allies at Parkdale Community Legal Services highlight one such success story where tenants from Rusholme Drive were able to defeat AGIs. The landlord exposed their intentions yet again in the letters they gave us this week, and we did not let that go unseen.
In Solidarity!