Island tenants fight rent hikes imposed before new rules took effect

Some Island tenants who received notice of rent increases before the province's new Residential Tenancy Act took effect say they'll taketheir fight to the Island Regulatory and Appeals Commission (IRAC).

The new legislation allows the Island Regulatory and Appeals Board to set an annual rent increase ofno more than three per cent, with landlords having the right to apply for an extra three per cent a year on top of that. That's a maximum annual rent increase of six per cent.

The act came into effect last weekend,more than four months after the bill received royal assent. It required a cabinetdecision to bring it into force, which the government made afterthe provincial election on April 3.

But some tenants say they received rent increases higher than six per centin the months leading to the legislation coming into effect.

Earle Arsenault received notice of a 34 per cent rent increase in December. That's on top of a5.2 per cent increase back inSeptember.

"I'm capable of paying the total amount, but the only thing is, there's too many residents here that's going to suffer,"Arsenault told Radio-Canada.

"Friends are very important to me it's my fight."

Arsenault had lived in his Wellington unit since 2011 and had paid $700 a month for years. The September rent hike raised thatto $770. Now,his landlord wants $1,037.

Arsenault said he proposed his landlord a 10.8 per cent increase as a compromise.

The property owner declined to be interviewed.

"I'm not denying that he's not, as you might say, making the same profit as he was before, but I think a compromise would have been acceptable," he said.

Arsenault has filed his appeal with IRAC and is awaiting a hearing date for May.

He said hewas visited by Housing MinisterMatthew MacKay, who personally told him he'd help with his situation.

MacKay was not available for an interview, but hisoffice confirmed that meetingtook place on March 23, while the election campaign was taking place.

IRAC said it'sreceived 154applications for greater-than-allowable rent increases since Dec. 1,involving about 1,500 rental units.

So far this year, the regulator has issued orders related to29of those applications. They affect 319 units:

• 143 units received a 0-5 per centincrease.
• 78 units received a5-10 per centincrease.
• 66 units received a10-20 per cent increase.
• 2 units received a 20-30 per centincrease.
• 30 units received an increase of over30 per cent.

CAPREIT tenants also facing increases

Shelby Lees and her neighboursarealso fighting a rentincrease.

Lees currently pays $1,171 monthly for a two-bedroom in Summerside. But she said she and other tenants are being subjected to a 12 per cent rent increase by her landlord, Canadian Apartment Properties REIT, which owns properties across the country.

"For large companies like CAPREIT, it's hard to to just accept it," Lees said.

"They were talking about how it was one of their biggest years to date, and now they're coming after us for more money. So it's just discouraging."

Documents targeted at investors on CAPREIT's website boast "another strong year" in 2022. Operating revenues increasedto over a billion dollars, an increase of nearly 8 per cent from the previous year.

CAPREIT did not answer CBC News' request for comment.

"We understand if there needs to be a small increase," Lees said. "A rental increase, it's natural. But 12 per cent plus is extreme.

"We're trying to get IRAC to understand and see that there's a lot of tenants in here that can't afford it. They're going to be homeless essentially, if they go through with this 12 per cent increase."

We're trying to get IRAC to understand and see that there's a lot of tenants in here that can't afford it.- Shelby Lees

P.E.I. has had thehighest inflation in the country every month except one for the past two years. In October, the province's vacancy rate the number of units available for rent fell to 0.8 per cent.

"It's still a lot of extra money in the economy that we're in right now. Groceries are expensive, gas is expensive, everything is expensive. And then rent on top of that, rent is crazy right now," Lees said.

CAPREIT owns three buildings in Summerside. Lees said tenants are co-ordinating their appeals.

CAPREITtenants in Charlottetown also told CBC News they've received a notice of increase.

"People are hurting in this situation," Lees said.

"I just really hope that IRAC sees it and realizes that their residents need their help now."