43 per cent rent hike at Fredericton apartment building struck down — for some

A 43 per cent rent increase notice delivered to a group of Fredericton tenants in January, including several seniors, has been struck down by the New Brunswick Residential Tenancies Tribunal.  

However, the ruling applies only to those tenants who asked for a review.

"I find that the Landlord has not established to my satisfaction that the increased rent is reasonable in relation to that charged for comparable units," wrote Andrea Wilbur, the residential tenancies officer who dealt with the case.

"Therefore, I set aside the [rent increase] Notice."  

In November an apartment complex at 35 McKnight St. in Fredericton sold to a numbered company in Halifax for what appeared to be a premium price of $6.675 million. The amount is $1.8 million above what New Brunswick government assessors valued it to be worth after reviewing the purchase.

Following the sale in January, renters in 42 of the two-bedroom units in the building received six-month notices from the new landlord that rent would be rising by $390 on Aug. 1, to $1,300 from $910 per month.

Eighty-two year old Irene Murphy was one of those and said at the time the notices caused a significant amount of worry among her neighbours.

"Oh my goodness, they are so upset," said Murphy. 

"I know a friend down the hall here. She told me yesterday that by the time she paid everything that she had to pay with this rent increase — and that's without groceries — she'll have $85 left over."

Murphy had lived in the building since 2012 and was among a number of tenants who filed for a review of the increase with New Brunswick's Residential Tenancies Tribunal

The tribunal has the authority to forbid an increase that is found to be not "reasonable" when judged against comparable apartments in the same geographical area.

In her decision, Wilbur detailed how the new owner hired Moncton-based K Squared property management to look after the building as its landlord.  She was told money was spent to repair an elevator, fix multiple coin-operated washers and dryers "on all floors" and hire biweekly cleaners.   

"The Landlord claims they are prioritizing all maintenance issues and concerns and are addressing them immediately," wrote Wilbur.  

"In addition, the Landlord states that the rent increase is necessary due to the increase in property taxes, building insurance and overall cost of maintaining a building this size."