The Landlord Tenant Board has issued it's
AGI Order
in casefile LTB-L-076488-23... and it is not good news for us tenants. They have given the landlord every penny he asked for. That is an 8.27% rent increase (~$150 per month) for everyone listed at the bottom of the order.
By
Tribunal Instruction
it will arrive in our mail slots on or before September 2, 2025.
Rent Arrears:
-
If you've been paying as you go, your account should be in order.
-
If you have been holding back the AGI amount from your rent, you will need to pay the arrears. This will amount to several hundred dollars as it will encompass the first year at 3% of your rent, plus the second year at 6%.
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You will have up to 4 months to pay any arrears in monthly amounts negotiated with the landlord.
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You may also have a rent adjustment increase for the balance of this year to pay as you go.
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In any case, you will have one more increase of 2.27% plus the province's annual increase on your next rent increase.
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The final 8.27% AGI increase will last for 16 years, expiring In August of 2041.
Be aware that if your name is on the list at the bottom of this order, you are caught up in it with no choice but to pay the rent increases. To not pay them will almost certainly result in eviction.
I feel very badly about this outcome. I am currently studying the order looking for anything that can be used to call for a review. It isn't enough that I/we might not like the outcome. There needs to be a serious error in judgement or law before we can seek further litigation. If none are found, we're stuck with this decision as it is.
Judicial Bias
After spending a couple of days with the LTB's
AGI Order
in casefile LTB-L-076488-23 I can tell you I've seen this all before.
In casefile SOL-40297-13, as here, the outcome was the result of some very biased and dishonest behaviour. Not by the landlord, by the Landlord Tenant Board, itself. In the
First
and
Last
hearing in SOL-40297-13, as in this new order, the adjudicator came into the hearing process with the pre-decided notion to approve the landlord's every claim in full. If you listen to the audio transcripts of those hearings you will find chaos and more than a little inappropriate behaviour from the adjudicators, all calculated to block tenant rebuttals and favour the landlord.
To take one example from this order, let's have a look at Item 1 which is about the balcony repairs:
-
First, look at tab 1 of the
Landlord Evidence.
Notice that he relies entirely upon two contracts, showing the work to be done, completion dates, etc. but does not produce any documentation to show that the balconies actually needed to be repaired or replaced.
-
Next, look at tab 1 of my
Tenant Submission.
In paragraph 3 I point out there is nothing in the landlord's evidence to indicate the work was actually necessary. I then show 130 pictures of balconies in good condition, being used and enjoyed by tenants, demonstrating the work was unnecessary.
-
Finally, look at the
Landlord Reply.
Note that he claims to have consulted with engineers about the work to be done, but failed to produce any evidence (reports, tests, inspections, photographs, etc.) to support his assertions.
At this point the adjudicator had all the submissions before her and it should be obvious that the landlord has failed to produce any proof that the work done was necessary under the rules set out in the
Residential Tenancies Act (p.126)
and
Ontario Regulation 516/06 (p.18). Moreover, she also had a considerable body of photographic evidence showing the work was not necessary.
In a fair hearing this should have resulted in a finding that the landlord had failed to meet his burden of proof. Item 1 would then be denied under part 126(8) of the Residential Tenancies Act, which excludes rent increases by reason that the balconies were not proven to need major repair or replacement.
So what does the adjudicator do?
She spends paragraphs 34 through 56 of her
AGI Order,
building the landlord's case for him so that she can approve the rent increase for Item 1. Interestingly enough, she used information from contracts and accepted the landlord's claims of consulting engineers without documents in evidence; neither of which actually prove the work done was necessary.
Other sections of the Order follow the same pattern of the adjudicator heavily favouring the landlord.
In colloquial terms: We were railroaded... by the LTB!
What really happened?
Since the Ontario
Residential Tenancies Act came into force, there has been a steady increase in the number of AGIs filed by landlords. The Landlord and Tenant Board's annual report for
2006
reported 209 L5 (AGI) applications. By
2024
this had risen to 912. A more than four fold increase.
This dramatic increase is largely due to a group of corporate landlords who have turned a corner from applying for an AGI because they did renovations to doing renovations so they can file an AGI. The original purpose of encouraging proper building maintenance has been abandoned. Now, they are abusing above guideline increases as a profit making tool. This is described in great detail in
This Report
prepared by Philip Zigman and Martine August, of
Renovictions TO.
Our current landlord earned specific mention in this document. I've highlighted the relevant parts in
This Excerpt
and our landlord even brags about it in their
Investor Presentations.
We have to appreciate that in the process of blatantly abusing AGIs, honesty has already gone right out the window. They will be doing work that is totally unnecessary and filing L5 applications to try and claim the expense of it.
They are, in effect, selling luxury to their investors... at their tenants' expense.
That is what we are seeing in this landlord's
AGI Application.
Anyone living here prior to April of 2021, when they took over, knows the balconies did not need to be torn up and redone. We all saw the game they played with the lobby intercom. We know the claims in the application were phony as nine dollar bills and should have been denied.
Of course, this explains the lack of evidence in the landlord's documents. The landlord presented no evidence because the investigation was never done. They didn't care that the building had been renovated multiple times. They didn't care about it's condition at the time. They had decided to redo everything before they ever saw this building. The work they did was not for building maintenance. It was strictly for financial gain, part of their "Repositioning" strategy.
Now comes the hard part
This is not some billionaire landlord's lunch money we are talking about. This is tenant money. Hard earned Rent Money; and there is a lot of it. There are thousands of AGI files involved, in thousands of buildings. A couple of recent news reports, like
This One
and
This One
bring the enormity of it into very clear focus and the numbers are climbing at a rate approaching a thousand a year.
It is very easy to blame landlords. Without doubt, what they are doing is despicable. But, surprisingly, it is not illegal. The Residential Tenancies Act gives them the right to file these applications, in part 126. Fortunately, it does not guarantee success. In fact, we should hope that a properly functioning Tribunal system would catch the phony-balony claims and deny them.
But not only is the LTB not catching them, it appears to be assisting the landlord by approving them. The real enemy is the Landlord Tenant Board who go out of their way to approve upwards of 85% of these claims, even in the face of evidence to the contrary, as we saw above and can be seen in case SOL-40297-13.
I can think of only three reasons the LTB would do this:
- Corruption
- Policy
- Incompetence
and none of these should be tolerated.
The only fence between tenants and rental chaos is the Landlord Tenant Board.
Activists and Tenant Advocates need to turn their attention to the LTB, the real enemy, and demand fairness in adjudicating these lawsuits.