Rent hikes intended to bring Edmonton units up to market value are forcing some tenants to move

Some residents of a townhouse complex in Hazeldean say they have no option but to move after receiving notice about steep rent increases. 

Tenants started hearing about the changes after the Southwoods Village Townhomes complex was purchased by Southwoods Village Management in mid-February. 

The company said the increases are to bring the units up to market value, but the change means some tenants are facing significant monthly rent increases. 

"We haven't been given an official eviction notice, but it almost feels like it, because who can afford a $500 rental increase," said Heaven Finlayson, who has lived in her two bedroom unit for three years. 

Finlayson's rent of $1,275 per month would have increased by $322 per month with an additional $140 in monthly pet fees.

"[It's] heartbreaking because I've raised my son in this neighbourhood and as desirable as this area is, it just makes it too expensive for single income or low income families to stay in the area." 

CBC News spoke with more than a dozen residents of the 160-unit complex who also raised concerns about rent hikes.

Southwoods Village Management told CBC News that since taking over the property, it has worked on resolving hundreds of deferred maintenance requests and has plans to upgrade the flooring, fixtures and appliances in some units. 

"In order to sustainably afford the cost of this level of investment and improvement, we are working to align rental rates with current market levels in Edmonton," the company said in a statement. 

"We know this transition may be difficult, especially for long-term residents and those on fixed incomes, and we are committed to a thoughtful, transparent process."

The conversation of rent control 

Despite tenant frustrations, the new property owners are within their legal right to increase rent. Alberta is one of four provinces in the country that doesn't have any form of rent control legislation, and it is not something the province has any plans to change. 

"Alberta will not go down the disastrous road of rent control," said Ashley Stevenson, a spokesperson for the Alberta government's ministry of seniors, community and social services said in a statement.

"Alberta tried rent controls in the past and found it harmed the rental market by discouraging new development and reducing capacity to maintain and upgrade existing properties."

However, some experts say that is not the case. Ricardo Tranjan, a political economist and a senior researcher at the Canadian Centre for Policy Alternatives, said rent control is often misunderstood as a rental freeze, which prevents rent from increasing and can have a negative impact on development. 

"The general benefit of rent control is that it provides families with some stability," Tranjan said. "It ensures them that rent will not go up by more than their salary in percentage terms"

Councillor advocates for more support for renters

Michael Janz, the city councillor for Ward papastew, where the complex is located, said he was frustrated and disappointed when he heard about the rent increases. 

Although he said there is nothing the city can do to help residents, he believes this is an example of one of the major issues Edmonton is facing, which is a lack of affordable housing for people of all income levels. He said he wants to see the province step up. 

"It's not enough for the provincial government to say 'Alberta is calling' and bring an influx of people, while providing landlords with free rein to raise the rent, and then wonder why people are going to be kicked out, homeless or gentrified out of their communities. That's not ok." 

Janz said he is working with the city to implement a landlord registration that would allow the city to hold landlords accountable for providing safe and well maintained housing for renters in the city. 

The future for Southwood residents

Finlayson said the future for renters in similar situations to her is bleak.

"There are almost no affordable places to live anymore with the rent increases that everyone seems to be facing," Finlayson said.

"It's making life almost unbearable. I get choked up talking about it because it seems that every time I try to get ahead something else happens; my rent increases, utilities get out of hand and everything costs more … there's no breaking even anymore and it's hard to live like that."

Since her interview with CBC News, Finlayson said she has given her notice and will be moving out of the complex.