Local family ‘shocked’ by massive rent increase
A redacted copy of the N2 delivered to the Greenwood family, notifying it of a substantial rent increase.
Roger Varley, Local Journalism Initiative Reporter
Kevin Greenwood and his family were shocked recently to learn their landlady wants to increase their $3,150 monthly rent to $7,000. That shock reached astronomic levels when the landlady revised the increase to $11,000 a month.
The Greenwood family has rented a townhouse in the new development at the east end of Brock Street, near Nelkydd Lane, since 2022. They are currently waiting for construction of their new home to be completed in a rural area of the township. That completion is expected at the end of September and, since their lease has expired, they have been renting the townhouse on a month-by-month basis.
Greenwood said he was a day late paying rent in July, although he said, "I may admit not entirely unintentional," indicating he might have been having a dispute with his landlady. On July 2, the day after the rent was due, he received a notice from the landlady, Kerry-Anne Graham of Pickering, that his rent would be increased to $7,000, effective Aug. 1. He pointed out to her that she had used the wrong form to advise him of the increase. She responded with the correct form but increased the rent to $11,000, beginning Sept. 1. Provincial regulations do not put a cap on rent increases for newer homes.
Greenwood said he offered Graham a 10-per-cent increase until the family moved out but that was rejected. He said that he and his family will put their belongings into storage at the end of August and move in with his mother until the new house is ready.
When Graham was contacted by the Cosmos and asked why she was asking for such a large increase in the rent, she responded: "I don't have to explain to anyone."
Questions to the Landlord and Tenant Review Board about the legitimacy of the size of the rent increase being sought by Greenwood's landlady resulted in nothing more than being asked to check the board’s web page, which states: "The 2024 guideline rent increase is 2.5%. Pursuant to section 6.1 of the Residential Tenancies Act (RTA), a rental unit located in a building that was not occupied for residential purposes on or before November 15, 2018, is not subject to the annual rent increase." This means that, because the house was built after 2018, it is not subject to the 2.5 per cent limitation, and rent can be set at the landlord’s discretion.
A question to the board about whether the landlady would be allowed to seek a rent or an increase lower than $11,000 once the Greenwoods vacate the premises went unanswered as of press time on Tuesday evening.
UPDATE: Aug. 8, 2024 - The Landlord and Tenant Review Board confirmed with the Cosmos that there are no limitations or expectations on what the landlord chooses to charge for rent to the next renters.