Residents of the Browns Court rental community in Charlottetown claim they have been enticed with substantial amounts of money to vacate their residences following a change in ownership two years ago.
Despite the current units being rented well below market rates, occupants expressed concerns to CBC News that rents might surge post-renovations by the new owner.
Mike Morrison, a resident for four years, shared his apprehension about the uncertainty of housing security, especially with potential rent hikes once renovations are completed.
The tenants raised doubts about the adherence to regulations regarding rent increases, evictions, and post-renovation rental adjustments in Prince Edward Island.
Browns Court, located near the University of Prince Edward Island, is popular among students and families due to its proximity to the campus.
In 2023, tenants were informed that the properties previously owned by Killam Apartment REIT were acquired by Werkliv Group Inc., a Montreal-based firm specializing in student and rental housing.
Concerns were raised by residents about being coerced to leave in exchange for financial compensation, with some tenants reportedly offered up to $7,000 to vacate.
While some new tenants in renovated units mentioned paying significantly higher rents, the specifics of previous rental rates and approvals for rental increases remain unconfirmed by CBC News.
The lack of formal eviction notices and concerns about potential breaches of rental laws prompted calls for investigations by residents and local representatives in Charlottetown.
Rent controls in P.E.I. limit rent hikes and require landlords to follow specific procedures for evictions, including providing notice and seeking approvals from regulatory authorities.
Gord McNeilly, the Liberal MLA overseeing the area, expressed worries that the complex operator might be circumventing regulations, leading to a challenging living situation for tenants.
The Residential Tenancy Office acknowledged the issue of rental incentives but emphasized that existing legislation does not explicitly address such matters.
Students leasing renovated units at Browns Court raised concerns about unexpected rent increases and compensation offers, highlighting challenges faced by renters in the region.