Those Who Need Rent Control, and Those Who Control Rent

The Toronto Tenant Strike

Photo | Getty Images

A high cost of living in the biggest city in the country is not something particularly surprising in theory, but what it looks like in practice has created great difficulty in Toronto. This summer, tensions have exploded in a rent dispute between the York South-Weston (YSW) Tenant Union and multibillionaire landowning company, Dream Unlimited. 

Two of Dream’s properties in South Toronto along King Street have undergone more than the usual rent increases of 2.5%. Despite there being legal limits to the permissible rent increase per year, like any law, there are loopholes to get around it. Ontario landlords are able to apply for “above guideline rent increases (AGIs),” which are special allowances for raising rent if a landlord has made a large cash injection to improve their property’s quality and livability. Accusations against Dream have been leveled for the unfair imposition of AGIs on its tenants. These accusations first arose in 2018 and although a resolution was reached on paper, tenants claim that Dream refused to keep their word regarding the price reduction. Increased rents are coming at a time when the tenants reported losses of access to elevators, pools, visitor parking, and balconies. After another round of raised rents, the YSW Tenant Union resorted to direct action, calling for a rent strike at the beginning of June, citing Dream’s unwillingness to respond to other forms of negotiation. The Tenant Union’s demands are as follows: first, end AGIs. Second, stop any applications for new AGIs. Third, lower rents for tenants due to the aforementioned lack of access to apartment facilities. Finally, the Union calls for respect for restrictions on rent raises. CUPE, our nation’s largest labour union, threw both their weight and their money behind the cause of living affordability by donating $5,000 to the York South-Weston Tenant Union and matching the sum in another donation to a similar organization.  CUPE also noted that the rent strike originated with a member of their union. 

Dream responded to these claims. Their spokespeople said that their rent costs are significantly lower than what they could be in the Toronto rent market, and that AGIs would only affect 60% of their King Street location due to affordable housing regulations. They further cited their willingness to work with individual tenants to help navigate the newer rents, but claimed that only a small portion of their more than 200 renters were willing to take up on the offer. 

On July 15th, action took place. Close to 100 individuals appeared in-person on King Street in a show of solidarity against Dream. As of August 1st, the picket lines have not moved. The Union’s Twitter has announced the rejection of eviction notices and the continuation of the rent strike in the face of Dream’s unwillingness to negotiate. The Dream versus York South-Weston conflict can be seen as a facet in a broader look at the building problems in the Canadian housing market and the lack of service towards the underprivileged. This glimpse tells enough of a story on its own about the legal loopholes, the role of organized labour and action, and the gross inequality that perpetuates in the city our university calls home.