A Reddit thread describing a sticky and head-scratching situation between a Toronto landlord and their tenant is making rounds on social media this week after the latter alleged that their rent was unfairly hiked. 

The since-deleted thread, which has now been reposted to X (formerly Twitter), was written by a tenant living in a condo near Yonge and Wellesley that was built "well before" the implementation of provincial rent controls in 2018. 

1/ Are Landlords in Toronto okay? This LL wants the tenant to go to the bank to explain to the financial advisor why the tenant can't cover the mortgage payment, told the tenant it will affect their credit score & they wont be able to get a mortgage. Unit is rent controlled. 👀 pic.twitter.com/me2IbzFwie

— Justice_Queen 🎊🧧🥂 (@RE_MarketWatch) January 4, 2024

According to the anonymous tenant, they first moved into the unit in 2015, and just five years later, the unit was sold to a new owner in 2020. This past Boxing Day, the tenant alleges that their new landlord issued them a rental increase 22 per cent higher than their previous rent. 

The tenant says they flagged that the rent was almost "10 times the allowed increase," however, the landlord argued that he had been "subsidizing" the tenant and making mortgage payments on their behalf. 

2/ Also important to remember even if the LL had another tenant in 2020 they would be getting well below market rent today as 2020 rents went down 😉 my question is why not buy a newer condo if you are not a fan of rent control? Same LL could have easily bought a new condo

— Justice_Queen 🎊🧧🥂 (@RE_MarketWatch) January 4, 2024

"He said that he doesn't believe in rent control when the mortgage on the condo I live in has gone up so much," the tenant wrote.

After refusing to provide the landlord with updated cheques, the tenant says the landlord made an appointment with his bank and is now demanding the tenant go in and explain why he won't be able to cover the mortgage payment anymore. 

"He said this will affect credit score? And that I will not be able to get a mortgage in the future if I default on this one? I didn't even know I had a mortgage, I'm a renter," the thread concluded. 

What bank is this guy with? How is the bank enabling this behavior by playing this charade on behalf of the landlord with the tenant? This seems more likely to be a gambit to get the tenant to either accept the new rent or leave so the landlord can sell the unit.

— Kenneth Cheung (@kennethdavid) January 4, 2024

The viral post resulted in various opinions across the spectrum, with most individuals using the opportunity to remind the tenant of their rights in this situation. 

"This is hilarious. First of all, your landlord can't really do much and this will have no impact on you getting a mortgage down the road. Seems like your landlord made a poor financial decision and seems to think you are unaware of the law," one person wrote. 

"Also, you by no means are required to go to the bank. That has literally nothing to do with you, so really I don't know what they expect you to say since you're not financially invested in the unit (from an ownership standpoint," the comment continues. 

"This landlord is particularly aggressive," another person noted. "What always strikes me is the lack of knowledge of rights — both parties. How many people simply pay the higher rent because they don't understand their rights?" 

That landlord is dreaming. Why would the tenant go? Just keep paying the rent controlled amount.

— Olivier Veer (@VeerOlivier) January 4, 2024

According to the provincial government, in most cases, the rent for a residential unit can be increased if at least 12 months have passed since the last rent increase or the date the tenancy began.

However, the landlord must give a tenant written notice of a rent increase in the proper form at least 90 days before it takes effect, with the current rent increase guideline for 2024 being 2.5 per cent. 

Here's how much landlords in Ontario can hike rent prices by in 2024 https://t.co/r9Itg7px05 #Ontario

— blogTO (@blogTO) June 30, 2023

The guideline is the maximum a landlord can increase most tenants' rent during a year without the approval of the Landlord and Tenant Board. 

The guideline applies to most private residential units covered by the Residential Tenancies Act, 2006, such as those living in rented houses, apartments, basement apartments, and condos. 

New buildings, additions to existing buildings, and most new basement apartments that are occupied for the first time for residential purposes after Nov. 15, 2018, are exempt from rent control.