Hamilton ‘rent strike’ could harm tenants
Underscores need for strategy to inform tenants, increase affordable housing
For months now, Hamilton has seen a so-called “rent strike” in the east end in response to a landlord raising unit rates by 10 per cent, an admitted “above-guideline increase.”
It’s an unfortunate situation — many of these tenants are low-income and immigrant renters who see the rent increase as unfair and untenable.
Ontario, of course, has strict rent controls in place, requiring landlords to limit any annual rent increases to just 1.8 per cent. However, there is a provision in the law to allow a landlord to apply for an above-guideline increase in order to recoup costs for structural and other significant, non-cosmetic renovations.
Whether the above-guideline increase procedure is being accurately used in this case is central to the dispute between the landlord and tenant.
What has not received a lot of attention, however, is that rent strikes are not a legally recognized option for a tenant to take against a landlord. The term and the action has thus far been taken at face value, but it is a risky, ill-advised proposition for a tenant.
Unlike in labour law, there is no provision under the rental laws for a tenant to “strike.”
A worker can refuse their labour and has certain hard-won protections if they do, but it is not a legal option for a tenant — someone who is ultimately a customer paying for a service — to refuse to pay the landlord.
In fact, withholding rent is an inadvisable tactic that can lead a landlord to pursue eviction and can seriously harm a tenant’s credit history.
The correct process is to use the tools outlined in the Residential Tenancies Act, namely for a tenant to raise their concerns with the Landlord and Tenant Board, the government tribunal that adjudicates and seeks to resolve disputes between tenants and their landlords.
Pointing this out is not to in anyway diminish the seriousness of the issue tenants are facing in east Hamilton. But it is important to point out that a “rent strike” runs the risks of further harming tenants — whether through eviction or through seriously damaging their credit score.
On the one hand, it’s not hard to sympathize with someone refusing to pay for what they deem as a subpar service, but a person who truly wants to support a tenant — particularly vulnerable populations like seniors or new immigrants living near the poverty line — should ensure they do not take any action that could risk compounding their problems.
Ultimately, the situation in east Hamilton underscores the need for an all-encompassing strategy to inform tenants of their rights, while also building new affordable housing, both by the municipal and provincial governments through social housing investments and through the private sector.
The Toronto Housing Pledge, crafted by over 60 Toronto-based tenant advocacy organizations, puts it quite well by saying, “We can’t just wait for the private sector … (the government needs) to go ‘all in’ — mobilizing its own land, money, borrowing capacity, planning and regulatory tools — to increase the affordable housing supply.” The same applies to Hamilton, where social housing is marred by inadequate funding.
In the meantime, tenants should be correctly advised to follow the existing process, not to take action that puts them at longer-term risk.