Tenants in Russell, Ont. worry sharp rent increases will force them to move

Kim Tanaszczuk loves her one-bedroom apartment in Russell, Ont. She loves the view of Church Street, and the open living area where she can read her Bible on the couch. But on Saturday, she is moving because she says the rent is just too expensive.

“I was just thinking last night, it is going to be really hard to leave here,” she says.

The building on Church Street was sold to Hartsford Properties over the summer. In September, tenants received a letter informing them of the rent increase effective Dec. 1, 2022.

“Nobody knew it was coming, nobody knew, and it was pretty shocking at the time,” says Tanaszczuk.

Tanaszczuk’s rent is increasing by $100, from $1,300 a month to $1,400, which is more than the 2.5 per cent limit set by the province of Ontario. Tanaszczuk says other tenants were told their rent is increasing by nearly $300 in some cases, depending on the size of the apartment and whether a storage locker was included.

Tanaszczuk says the cost of living in the building just became too expensive, and decided she had to leave.

“I have been living off my savings. When it went up to $1,400, it was a wakeup call; you can’t go on like this. Otherwise, you are going to be out of money, completely out of money, and then what are you going to do? There will be no savings left. It was clear I needed to move,” she says.

Tenants were shocked to learn the sharp increase is allowed because of an exception announced by the Ontario government in 2018.

In a statement to CTV News, a spokesperson for the Ministry of Municipal Affairs and Housing wrote, “In 2018, to stimulate the construction of new rental housing, the government announced an exemption of new units from rent control rules occupied for the first time after Nov. 15, 2018, as well as new additions to existing buildings and new second units created after Nov. 15, 2018.

“This is paying off for Ontarians. Last year, Ontario reached a 30-year record for new rental housing construction, the most units built in a single year since 1991.”

The statement says the provincial government “continues to look for ways to make homes more attainable for hardworking Ontarians, while making it easier to build more houses and rental units to address the ongoing supply crisis.”

Many tenants say they had no idea this rule existed.

“I was shocked, I didn’t believe it could happen,” Tanaszczuk says, adding most tenants had no idea.

Tanaszczuk calling the Landlord Tenant Board who informed her the rent increase was possible.

“I read it, but I thought, ‘It must be wrong! It must be wrong! It is not right!’ and so they can do it. Any new build first occupied after Nov. 15, 2018- there is no rent control.”

CTV News has reached out to Hartsford Properties did not hear back by the time of publication.

But in the letter sent to tenant informing them of the increase the property owner wrote, “We understand that this rent increase may be larger than expected—we are providing notice well in advance to allow ample time to prepare for this change.”

The letter also states, “factors including inflation, increased expenses, and average market rents in your area have contributed to this increase and were carefully considered.”

After receiving the notice, Tanaszczuk compiled a list of apartments, and buildings in a 50-kilometre radius of Russell. She says, “I started calling people on my list to see if there was anything available, and at the time, it was all no. By the Grace of God, I got a call that an apartment suddenly became available, and would I be interested, and I say ‘yes!’”

Tanaszczuk is moving to an apartment with rent control and will be paying less every month.

She says many other residents want to move, but finding affordable housing is difficult.

Interim Ontario Liberal Leader and MPP for Ottawa South John Fraser says, “I don’t think this is the Ontario that we expect. It is putting people in situations where rents are increasing faster than families and individual seniors can’t keep up with, and it is wrong. We need to return to real rent control in Ontario.”

Fraser says there is a lack of affordable housing and rental units across the province.

“People are being forced to move from their home, I know they are renting, but it is their home, and it is not right, and the government is choosing to ignore this at a time, when rent, food, and everything is rising. There is never a good time for this to happen, but this is the absolute worst time for it to happen.”

Tanaszczuk continues to pack up all her belongings but says leaving the people and community behind will be difficult.

“I am sure there are wonderful people where I am moving to, that is no slight to them, but I am connected here.”

She says she hopes her story can raise awareness about rent control and help others prevent being in a similar situation.