Landlords are looking for ways to increase rents

More than 20 property owners and managers recently participated in an online discussion posted on the site Youtube over there Moncton Real Estate Investing Organization.

They talked about various possibilities: convincing tenants to voluntarily accept higher increases, imposing time-limited tenancies on them that would force them to vacate on their due date, or scheduling renovations large enough to justify their departure. , whether these renovations take place as planned or not.

According to property manager Tony LeBlanc, who led much of the discussion, the government is aware of their moves. It would hardly be surprising, he said, if the government began to correct the flaws in question in its bill.

The government announced in its budget its plan to impose a cap on rent increases this year, retroactive to January 1. Tenants have previously denounced a series of rent increases of 20%, 30%, even 90% following the sale of buildings to new owners.

Possible loopholes?

During the online chat, Tony LeBlanc explained that a client who recently bought a building and invested $150,000 to renovate it is distraught. This is why he intends to ask the tenants, on behalf of this owner, to accept a rent increase of more than 3.8%.

This strategy was already employed in the province last month. A new landlord in Hampton has evicted his tenants after they refused to voluntarily accept increases of 29% and 43%. The owner has indicated that these rents will be converted into seasonal rentals.

The proposed ceiling applies to current tenants rather than new tenants, hence the idea in Moncton of limiting the duration of rentals or planning renovations that would justify a change of tenants.

Proposed changes to the law will allow tenants to be evicted in certain circumstances, including major enough renovations. The government has not specified what this means. Tony LeBlanc believes that there is talk of work that would last more than two months to justify an eviction and that there would be no consequences if the renovations are completed early.

Tony LeBlanc, however, recommended caution to participants because fines are provided for non-compliance with the rules.

None of the three main organizers of the discussion responded to interview requests.

Advice from a Tenant Advocate

Peter Jongeneelenmember of the organization ACORNAssociation of Community Organizations for Reform Now who is campaigning for a reform in this area, advises tenants to refuse any increase above the ceiling. He says tenants shouldn’t have to pay for landlords’ investment mistakes.

He advises tenants not to move out for renovations until they have consulted with the Residential Tenancies Tribunal.

Mr. Jongeneelen also asks the government to tighten the rules to prevent the loopholes that the industry discusses publicly.

The cap bill is due to be reviewed and debated by MPs during the next legislative session, which begins on May 10.

According to a report by Robert Jonesof CBCCanadian Broadcasting Corporation