A tenant movement continues growing in Toronto as rent strikes expand across multiple apartment buildings over repair concerns and rent hikes.
On Sunday, over 100 tenants at 1440 and 1442 Lawrence Avenue West joined in withholding rent payments. This adds to nearly 500 residents across three other buildings – 33 King Street, 22 John Street, and a Thorncliffe Park complex – striking since summer.
Tenants cite pest infestations, broken elevators, and foul odors across the aging buildings. But the tipping point was landlords filing for above-guideline rent increases up to 5.5%, despite failing to address repair issues.
Months of Inaction
The Lawrence Avenue tenants say they’ve dealt with poor conditions for too long without their landlord, Barney River Investments, making needed improvements. Issues like non-functioning garbage chutes and Canada Post ceasing delivery over insect infestations demonstrate the dire situation.
In April, residents presented the company with a maintenance petition signed by most tenants. But months later, the landlord still hasn’t engaged with their concerns. The rent strike aims to pressure action on repairs and withdraw the above-guideline increases adding insult to injury.
Similar scenarios led to strikes at the other buildings, with tenants feeling ignored by ownership despite unacceptable living standards. City officials attempted to mediate between the parties, but received little response from the landlords. This recently prompted the first eviction notices against striking tenants.
Rare Coordinated Action
While rent strikes occur periodically in Toronto, the scale and coordination of these actions is unprecedented. The combined participation across five buildings marks the largest collective tenant protest the city has seen.
But despite surpassing almost 500 participating units, progress on negotiations remains elusive. The organizations hope expanded actions will increase pressure for compromise from ownership. But the strikes also underscore the need for policy changes and stronger tenant protections on rental issues.
With Toronto facing low vacancy rates, groups like Keep Your Rent argue provincial caps on rental increases are inadequate. The escalating strikes reveal gaps that leave tenants feeling powerless even in unsafe conditions. It remains to be seen whether collective action can move the needle where individual complaints failed.
Ongoing Housing Pressures
The disputes highlight the ongoing housing affordability challenges across Toronto. With rents rising faster than incomes, above-guideline hikes by landlords create additional pressures. This often leaves low and middle-income tenants struggling, especially in older buildings needing upkeep.
The striking residents hope to achieve overdue repairs, compromise on rent, and spark broader change in landlord-tenant relations. But the expanding labour action also reflects market conditions placing Toronto renters in increasingly precarious situations.
Here are some potential policy changes that could help address issues faced by tenants in Toronto:
- Stricter rent increase caps to protect tenants from excessive hikes above inflation/guidelines. This could ensure rents remain affordable.
- Enhanced enforcement tools for property standards to ensure timely repairs and maintenance by landlords. Allows fixing problems without needing strikes.
- Expanded rights and accelerated timelines for tenants to appeal above-guideline rent increases. Gives tenants more voice.
- Tax incentives or access to low-cost loans for landlords making major repairs/upgrades to improve housing quality. Encourages proactive maintenance.
- Licensing system for landlords to ensure proper standards and practices. Could improve professionalization of industry.
- Increased construction of purpose-built rentals to expand affordable rental stock and vacancy rates. Provides more choice.
- Legal support fund for low-income tenants facing disputes or advocacy challenges. Allows equal representation.
- Mediation services to resolve tenant-landlord conflicts before situations escalate. Creates options beyond strikes/courts.
- Community land trusts or non-profit rentals to provide stable affordable housing. De-commodifies part of market.
Here are some potential challenges in implementing a landlord licensing system:
- Administrative burden – Setting up a registration and inspection regime requires significant administrative resources and adds bureaucracy.
- Cost – Licensing fees and compliance costs may get passed on to tenants through higher rents.
- Enforcement – Actually ensuring all landlords comply can be difficult, especially with small-time operators.
- Resistance – Landlord groups may lobby heavily against new regulatory burdens and fees imposed on them.
- Lack of data – Local governments may lack sufficient data on the full landlord population to build an effective licensing system.
- Staffing – Municipalities need adequate staff for inspections/enforcement. Budget constraints could limit hiring.
- Balancing interests – Licensing aims to filter out bad landlords but not impose excessive barriers for law-abiding ones.
- Tax implications – Imposing new costs/fees on landlords could discourage real estate investment if not structured properly.
- Scope limitations – Municipal licensing may only extend to health/safety issues and not fix broader policy problems.
- Displacement risks – Strict licensing combined with low vacancy rates could potentially displace some tenants.
Overall, landlord licensing aims to raise standards but requires careful design to avoid unintended consequences. Outreach and balancing interests of both tenants and landlords is key to viable policy.
Our team has researched some potential strategies to help balance the interests of tenants and landlords in designing a landlord licensing system:
- Phase in implementation over a few years to give landlords time to meet new requirements without causing undue disruption.
- Offer graduated licensing fees based on property size so costs are equitable.
- Focus inspections on higher-risk properties first before expanding. This efficiently targets problematic landlords.
- Establish a landlord advisory/feedback group to get input on effective design and concerns.
- Provide licensing fee waivers or reductions for landlords completing educational courses on property management best practices.
- Develop an appeals process for landlords facing license suspensions/revocations due to inspection issues.
- Structure the system as cost recovery so it’s self-funded rather than an excess burden on landlords.
- Partner with landlord associations to develop information guides and workshops to help landlords achieve compliance.
- Offer licensing fee discounts for landlords with no violations after renewals to reward good performers.
- Implement temporary licenses so new landlords get a chance to fix issues before facing revocation.