Toronto Landlords Accused of Filing Meritless Eviction Notices
Tenant advocates in Toronto are reporting an increase in landlords filing eviction notices against tenants for non-payment of rent, even when the rent has been paid in full. This practice is raising concerns about potential abuse and exploitation within the rental housing market.
Tenant Advocates Raise Concerns
Tenant rights groups such as ACORN and the Advocacy Centre for Tenants Ontario (ACTO) have observed a rise in these seemingly unfounded eviction applications. While specific figures were not provided, the organizations highlight a worrying trend that demands attention. Lawyer Marc Goldgrub, who represents several tenants, is urging the Landlord and Tenant Board (LTB) to take decisive action against landlords who submit frivolous claims.
The 'Loophole' Landlords Exploit
Douglas Kwan, director of legal services for ACTO, points to a provincial "loophole" that landlords may be exploiting. Under provincial regulations, landlords are generally limited to a 2.5% annual rent increase. However, if a tenant vacates voluntarily, the landlord is free to raise the rent to any desired amount. This creates an incentive for landlords to push tenants out, even through questionable means. "Landlords who may have fallen into a situation where they may have made a bad investment see that loophole, and are trying to utilise that by serving meritless notices of termination on tenants hoping...the tenants will give up, move out, and then they can rent that unit at whatever rent they desire," says Kwan.
Impact on Tenants: A Case Study
Sara Basso, a 15-year resident of a Gloucester Street building in Toronto, believes she was a target of such a meritless eviction application. In January, she received an LTB application alleging years of unpaid rent increases and thousands of dollars in arrears. Goldgrub successfully defended Basso, presenting bank statements proving consistent rent payments and demonstrating the lack of proper notice for rent increases. Despite the victory, Basso incurred significant legal fees and endured immense stress. "It was incredibly stressful. It was a financial burden," Basso stated.
Calls for Repercussions and Accountability
Goldgrub and Kwan are advocating for consequences for landlords who misuse the eviction process. Goldgrub highlights the frustration of wasted LTB resources on frivolous applications, noting, "One would think, given the LTB's infamous backlog, that adjudicators would be furious for the time and resources wasted by these garbage applications." Kwan emphasizes the LTB's power to levy fines up to $35,000 per application, a power that is rarely exercised. He also suggests the shift to virtual hearings during COVID-19 may have contributed to the problem, as adjudicators are less familiar with local landlords and their representatives.
Industry Response and Counterarguments
Landlord groups deny widespread abuse of the eviction process. Christian Szpilfogel, a landlord and board member of Rental Housing Canada, argues that it's in a landlord's best interest to comply with regulations and avoid reputational risks. Tony Irwin, president and CEO of the Federation of Rental-Housing Providers of Ontario, stated that his organization's members adhere to the rules and prioritize open communication with tenants. Szpilfogel also believes that the current system of administrative fees is adequate and that further crackdowns on landlords are unnecessary, as he claims tenants are not sufficiently penalized for dishonesty.
The Landlord Tenant Board's Role
The LTB has been contacted for statistics and responses but has not yet provided any information. This raises questions about the board's awareness of the issue and its commitment to addressing potential abuses within the system. The debate continues regarding the extent of the problem and the necessary measures to protect tenants from unwarranted eviction attempts and ensure fairness in the rental housing market.
