Less than a year after tenants moved into this new building, landlord seeks 7% rent hike

As a longtime supporter of downtown London, Chris Callaghan was excited to be among the first tenants to collect his keys and move into the brand new One Richmond Row building in June. 

Old Oak Properties' 32-storey, 175-unit apartment building near the corner of Richmond and Dufferin has an eye-catching, ultra-modern design and overlooks St. Peter's Basilica. To Callaghan, the building offered Toronto-style downtown living in a city that has struggled to build density in its core. 

"The building itself was unique to London," said the 54-year-old. "The fact that it was going up in the downtown, I was proud to see that the city was turning a corner and we're going to be part of a transformational project, one that helps to enhance the downtown and bring people downtown to live. I felt like I was part of a project where I became a downtown pioneer." 

Less then a year into his tenancy, Callaghan — and a number of his neighbours — are less than elated. 

Early this year, tenants began to receive notices stating the landlords' intention to increase rents by about seven per cent. 

When he signed his lease, Callaghan's rent for a two-bedroom apartment was $2,185 including utilities, a storage locker and free parking for one year. The increase will mean Callaghan must find an extra $160 a month starting June 1, when his lease turns over.

Callaghan is active on the building's Facebook group and believes every tenant received an increase notice. 

Callaghan feels it's unfair for the building's owner to ask tenants for such a steep increase only months after they signed a lease. 

"I really feel that I was preyed upon," he said. "I negotiated in good faith a lease amount and a few months later, I receive a notice that they're not going to honour that amount and that they're increasing it by seven per cent. This came out of left field." 

Callaghan said he's been unable to get the building owners to respond to his questions about why tenants are being hit with an increase now. 

CBC News reached out to Old Oak Properties for comment on Friday but also did not receive a response. 

Lilya Volkov owns a tattoo business on Dundas Street West and in February moved into One Richmond Row with her partner.

She said the landlord originally asked for a 1.2 increase back in September through the building's tenant web portal, an increase she says she could have lived with. But like Callaghan, that increase was upped to seven per cent in February, which she feels is unfair to apply to brand new tenants, some who moved in before the building was fully finished.

"It's just such an extortionate amount with not much warning," she said. "It's pretty shocking."