CAPREIT was seeking a 7.4% above-guideline rent increase at the Landlord and Tenant Board hearing held on Sept. 18.
A
mediated settlement was reached for a 6.4% above-guideline increase over a
three-year period (this amount is in addition to automatic annual guideline
increases).
While it is recognized that many tenants were hoping for a much larger decrease, please bear in
mind that reducing the amount from 7.4% to 6.4% represents
a 13.5% decrease.
To
provide some historical context, the landlord for 6 Park Vista applied for a
13.01% rent increase in 2004 and was granted an 11.64% increase.
Given
the rules that the Landlord and Tenant Board operates under, it is challenging
to dispute capital expenditures that meet the criteria of eligible costs. It's
not about fairness to tenants and affordability, it's about strict rules and
regulations.
Given
the settlement, tenants at 6 Park Vista affected by the increase whose leases renew on or after
April 1, 2015 will get the following increases:
- 4.6% increase in 2015 (3% + 1.6% guideline for 2015)
- 5% increase in 2016 (3% + 2% guideline for 2016)
- 0.4% increase + 2017 guideline (TBD) for 2017
The bottom line is that the difference between the 7.4% CAPREIT was seeking and the 6.4% settlement translates into a savings of $10.00 a month or $120 a year (in the third year) for a tenant paying $1,000 a month rent.
The ability of tenants at 6 Park Vista to collectively challenge this rent increase was possible thanks to
those tenants who signed the petition for the $1,000 Tenant Defence Fund Grant.
That allowed us to hire an experienced paralegal to review the landlord's
application, crunch the numbers and negotiate on behalf of tenants during
mediation.
A special thanks goes to those tenants -- including some excluded from the increase -- who have further supported our efforts by becoming members of the Park Vista Tenants Association.
In addition, Maryanna Lewyckyj, Building Director and tenant of 6 Park Vista who lead the AGI case, would like to personally thank those tenants who took time out of their busy schedule to attend the hearing and see the events unfold.
In addition, Maryanna Lewyckyj, Building Director and tenant of 6 Park Vista who lead the AGI case, would like to personally thank those tenants who took time out of their busy schedule to attend the hearing and see the events unfold.
