After 23 years in the same downtown location, Anita Agrawal was shocked when her landlord said he was putting her jewelry studio on a month-to-month lease, and boosting her rent by almost 20 per cent.
A new report being released Thursday by The Better Way Alliance, a progressive coalition of small businesses, suggests that Agrawal’s experience is far from unique. The study, titled “Out of Control,” is calling on the Ontario government to give small businesses the same rent control protections some residential tenants get.
Agrawal’s co-author Gilleen Pearce said the economic devastation COVID-19 has spread makes it all the more urgent to protect small businesses from massive rent increases. Residential landlords can only raise rent by an amount set each year by the provincial ministry of Municipal Affairs and Housing. In 2021, that guideline was 1.2 per cent. Residential rent increases above that guideline must be approved by the Landlord and Tenant Board and must be for specific reasons, such as a major renovation or repair. The rent controls don’t apply for houses or apartments built after 2018.
“The CTA allows landlords and tenants to agree to terms that let tenants operate their businesses effectively and not restrict landlords’ ability to protect their investments,” said Knowles.
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