That’s 2.5 weeks of full-time work at the current minimum wage, which (judging by average wages and occupation) is what many earn. The AGI was the straw that broke the camel’s back.īased on average rents in that part of town, average increases would add to more than $1,500 a year. As any parent will tell you, unconventional working hours take a toll. Back then, they were called essential workers.Ĭensus data also shows that 32 per cent of them leave for work between 12 p.m.

In the second year of the pandemic, workers in these buildings were less than half as likely to work from home as average Torontonians. (71 Thorncliffe Park Drive is in a separate census area, with similar statistics.) Another 42 per cent live in units that are too small for the size of their families - likely to keep rent costs low. Even if they can’t.Īccording to 2021 Census data, 37 per cent of tenants at 75 and 79 Thorncliffe Park Drive spend more than 30 per cent of their income on rent, or too much, using the standard definition of housing affordability. They don’t get to choose how much is spent. They don’t get to choose which renovation should be done first. Tenants don’t get to choose whether a renovation is necessary. In either case, the landlords win.įor tenants, AGIs come as a sucker punch. If tenants can’t bear the financial burden and leave, landlords raise rents by as much as they want - in Ontario (and other provinces) there are no rent controls on vacant units. Future rent increases are compounded on top of AGIs, generating extra revenues for years. The same application can cover hundreds of units. A sweet deal they have been cashing on.Īnalyses by the Wellesley Institute and RenovictionsTO have found a remarkable increase in AGI applications over the past years.įor landlords, AGIs pay off. In other industries, service providers absorb the cost of preserving and improving their assets, but in Ontario (and other provinces), landlords get the special treatment of passing these costs onto tenants on top of rents. The justification: recent renovation costs.

The company applied for an above guideline increase (AGI) that would raise rents by around 4.2 per cent in 2022 and five per cent in 2023, with the exact increase varying across units.

For Starlight Investments, the real estate giant overseeing financial assets, including these and other buildings, for the Public Sector Pension Investment Board (PSP), one of Canada’s largest pension funds, 3.7 per cent over two years wasn’t enough. The Ontario rent increase guidelines for 20 were 1.2 and 2.5 per cent, respectively. Tenant organizing is not new, but whenever it gains momentum, it exposes the class conflict that underpins housing debates, pushing people to pick a side. Come June 1, more tenants and more buildings may follow suit. More than 100 tenants on 71, 75 and 79 Thorncliffe Park Drive refused to pay rent in May. Faced with skyrocketing rents and the endless housing debates that accomplish little, organized tenants are going on rent strike.

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