The government reimburses landlords for hydro, but do tenants benefit?

BY MICHAEL THOMAS

A few years ago, most apartments in Toronto could be rented just by paying the rent that was requested, but Dalton McGuinty, the Premier of Ontario, changed all this when he gave Toronto landlords a huge profit bonus by allowing landlords to start charging their tenants for electricity. This happened when he put into law his Smart Meters to be installed in Toronto, so tenants can be made to pay per usage.

First of all, even though the hydro was not charged separately to tenants, it was already factored into their rent, this now left those tenants who were paying rent which included their hydro, now with a separate hydro bill, the landlords in turn got to eat their cake and have it too.

Landlords pocketed a huge profit bonus approximately $200 per tenant per month, and $2,400 per annum per tenant for every landlord/property that implemented this policy.

One such building where this issue has been on display in local news previously is 130 Jameson Ave in downtown Toronto. Some residents are now speaking out because they have been targeted for eviction for simply operating their air-conditioning unit, which is not acceptable by management.

However, some tenants took this up with their MPP, and management was confronted, but management seemed to be holding their ground, because tenants have no recourse.

It is important to note that some of these tenants have lived in these buildings for decades. There are disabled tenants as well, and when the temperature rises in the summertime, it can be very difficult for the elderly and disabled folks to cope without the use of air conditioners.

One tenant revealed that this is a smoke screen to get long-standing tenants like him evicted, so as to hike up the rent on new incoming tenants. This is not a far fetched idea by no means, Bhutila Karpoche, MPP for Parkdale-High Park, said, tenants in Ontario are up against a major loophole that was introduced during former Premier Mike Harris’s PC government, where if a unit is empty, rents can be increased by any amount that the landlord sees fit.

Toronto has for decades held the unenviable title of being one of the most expensive cities to live in, and this is no laughing matter. Ontario is more than doubling the amount of rent increases, and a landlord can charge a tenant as of next year from 1.2 to 2.5%. This is just the start.

Despite the government putting a cap on how much rent landlords in Ontario can charge a tenant per year, there are still those who find loopholes and ways around such stipulations and exploit their positions for maximum profit every time.

One such way is to apply for an Above Guideline Rent Increase (AGI). A landlord or owner can raise rent more than the amount that the provincial government sets each year based on the provincial Consumer Price Index, which takes into account economic factors like inflation.

Even though Toronto is overpriced to live in, believe it or not, more guideline rent increases have been applied for. A new report from https://renovictionsto.com/agi-report/RenovictionsTO-AGIReport-Final.pdf shows that from 2012 to 2020 Toronto went from 117 AGI applications filed seven years ago, to 294 last year.

As this study rightfully revealed, landlords who are making millions in profits can further boost their revenues by transferring the cost of repairs to tenants.

Community, how do you feel about this?