Significant rent increases leaving Mississauga residents stressed and worried

When April Johnston learned that her Mississauga building was going to ask for two above-guideline increases in rent, she started urging other residents to prepare to fight the proposed hikes at an upcoming written hearing that she believes is going to be hard–if not impossible–for some tenants to navigate. 

“We just received letters from the Landlord and Tenant Board for a written hearing,” Johnston told insauga.com. 

“A lot of the people in this complex do not speak English, so they have no idea what came to their door and these tenants have to submit written evidence to the LTB to fight the above-guideline increase.” 

Johnston, who has lived at 425 Rathburn Rd. E. since 2018, told insauga.com that she has received two notices indicating that her landlord is asking to increase her rent above the provincially-mandated guideline of 2.5 per cent year. 

According to Johnston, the building owners indicated they’re asking the LTB to grant one 4.8 per cent increase for 2023 and another for July 1, 2024. If the increase is approved, her rent could climb close to 10 per cent over the guideline. 

While residents have the option to formally oppose the proposed above-guideline rent increases (better known as AGIs) by submitting written arguments to the LTB before May 24, Johnston says requiring tenants, many of whom do not speak English as a first language or at all, to share their concerns in writing is daunting and discouraging. 

“With people who don’t speak English, it’s going to be hard. We’re trying to help people, but 190 apartments is a lot to go to,” she says. 

According to documents shared with insauga.com, the AGIs were requested to account for three capital expenditures (which are considered eligible for AGI requests), including over $370,000 to repave the asphalt parking lot, over $305,000 to replace the roof and over $47,000 to restore a water main break. 

insauga.com reached out the landlord’s representatives regarding the AGIs, but did not receive any comment by publication time. 

While Johnston’s situation is challenging, she’s not alone. According to a recent report by ACORN, a national community and tenant union of low- and moderate-income people, AGI requests have risen sharply across Canada. 

The report, comprised of data obtained from the LTB via a freedom of information request, suggests that over the past two decades, the number of AGIs have gone up by 107 per cent. While the numbers have dropped some years, the overall trend is on the upswing. 

Looking at AGIs filed between 2017 and August 2022, the report found the greatest amount of requests came from landlords in Toronto, Ottawa and Mississauga. In Mississauga, 204 AGI requests were filed during that time period–well below Toronto, where close to 1,500 requests were made. 

Other cities that made the top 10 include Burlington (67), Hamilton (116) and Kitchener (119). 

Chart courtesy of ACORN

The report highlights the situation in Mississauga, saying that rough estimates using data from the city’s corporate report on its MARC apartment inspection program show that landlords in 15 per cent of total apartment buildings in the city are filing AGIs, effectively impacting 4,500 units.

While AGIs–which can be requested based on significant increases in municipal taxes, major repairs or necessary renovations that do not include cosmetic upgrades or increased security costs–do expire once the upgrade has been paid for, the report argues this rule is not well enforced. 

The report also says the rent increase can be difficult for tenants to cover in the short term. 

According to the report, a tenant paying $1,300 a month will, in the event of an AGI approval, be forced to pay the current rent plus the provincial guideline (currently 2.5 per cent) and the AGI increase (assuming the approved AGI is three per cent, but it can be as high as nine per cent spread out over three years). 

In this scenario, $1,300 becomes $1,371 for the first year of the AGI. 

While AGIs do not have to be paid until they are formally approved by the LTB (meaning tenants can continue to pay their usual monthly rent until the request is approved), the report says that a belated AGI approval could require tenants to pay the increase retroactively.

“This puts immense additional burden as tenants are required to pay a lump sum amount varying between $3,000 and $4,000,” the report states. 

Johnston says she would be more willing to stomach the proposed increases if more work was completed inside the units themselves rather than on the outdoor infrastructure. 

“If work is done inside the apartment, you’d forgive the AGI more,” she says, adding that the city identified problems in the building during a December 2022 inspection. 

“For a long time, there were roaches and mice. People went without heat and hot water for over 30 days. There are drywall issues. They’re paving a driveway and doing a roof and they neglected the insides,” she says. 

In 2023, the landlord’s representative told insauga.com that the building had taken steps to rectify issues with pest control and on-site garbage disposal. insauga.com has requested an update on the property from the city. 

Johnston previously told insauga.com that her hot water did not work properly for over 90 days and that she injured her shoulder bathing with a bucket. 

While Johnston hopes the proposed AGIs are ultimately declined, she wishes to see rental increases above the provincial guideline banned entirely.

“This is 100 per cent a business and we’re generating the landlord’s income. No other business is allowed to take five per cent off your paycheck to get a new roof. They are allowed legally to steal from employees, AGIs should be banned 100 per cent. They’re unethical. Why should a landlord take repair money from their people?” 

She also says that should the AGIs be approved, she will have trouble affording food.

“With this AGI, my rent will go up to $1,600 and I need to pay for insurance and utilities. That leaves me what for food and groceries–$300 or $400 a month to live. There are a lot of seniors and people on ODSP in my position who are one more AGI from not being able to live. If this goes through, I won’t be able to eat,” she says. 

Johnston says that for tenants struggling with the increasing cost of living, major rent hikes can push them closer and closer to homelessness. 

“We need subsidized housing where rent shouldn’t be upped a certain amount. I have applications for co-ops with 10-year waitlists. The homeless situation will get a lot worse and then what will happen? People with two jobs can’t be home to raise their kids. When people don’t have affordable housing and have to fight for food, the streets are raising their kids. Affordable housing is where we need to start,” she says.

She also believes having a written hearing will violate some tenants’ rights and that, upon seeing any kind of official notice, tenants might feel they have no choice but to leave.  

“It’s a violation of human rights. People don’t read or speak English, so you’re shutting the doors on these people. I’ve seen so many good families evicted because they didn’t know they had the legal right to fight.”