Tenants scramble as rent skyrockets at Edmonton heritage apartment building

Tenants of the recently sold historic Edmonton building, the Annamoe Mansion at 11950 100 Ave., will be looking for new homes over the coming months after the property’s new owners sprung an $1,800 jump in rent for all units on Tuesday.

“Some people are facing more than 200 per cent increases,” said two-year resident Tim Kenny, who is being charged three times his current rent.

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In January, Postmedia reported on the impending sale of the Annamoe Mansion to ARH Rentals for $3.5 million. At the time, ARH president Ali Hassan discussed plans to renovate and breathe new life into the property, which is listed in the city’s inventory of historical resources. The Annamoe’s current tenants are speaking out against the recent rental increases that they say will force everyone in the building to leave.

“It was a shock to wake up to a note in my mail slot today that my rent is about to triple,” said tenant Joseph Rockwood.

It’s not just the fact that rent is going up that has upset tenants, the way they were informed and the extent of the increase has angered them.

“We found out via notices on our door,” said Kenny.

“No knocking on people’s doors and introducing yourself to say ‘Hi, I’m your new landlord, this is what’s going to be happening.’ Just cowardly notices on the doors and then leaving us all kind of in the wake over the past 12 to 18 hours.”

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Kenny describes the building’s tenants as a community, one where neighbours know and look out for one another. They span a wide range of ages, and some have been in the space for multiple decades, which was made possible by the Annamoe’s former owner, Dr. Robert Conroy.

According to his daughter, Ruth Blayney, Conroy’s family grew up in a former Victorian home next to the Annamoe. Blayney said Conroy kept rents low to account for the quirks that come alongside the charm and character of a 110-year-old building.

“It was not a highly profitable building to own, buildings that are over 100 years old rarely seem to be,” said Blayney in an email.

“He liked having tenants who appreciated and respected the building’s design and detailing.”

Conroy died last year, which is why Blayney and her siblings sold the Annamoe. She said the deemed disposition tax for the property was so high that the family had to sell the building to pay for it.

With new owners came the leap in rent, and while tenants knew an increase was likely, they weren’t expecting it to be so high that they’d have to move.

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“I kind of said to myself, like, $1,200 to $1,500 a month is the most I would want to pay for what I live in, for the condition of the building,” said Kenny.

“It doesn’t warrant $2,695 in July.”

Part of Kenny’s valuation of the rent was attributed to a recent mouse infestation, plumbing issues, electrical problems and poor heating and cooling on account of the antiquated boiler heating system.

Robert Noce, partner lawyer with Miller Thomson and former city councillor, said he’s been on both sides of instances like this one, having advised landlords and tenants alike. In regards to landlords, Noce preaches transparency.

“I have always advised landlords to be transparent in their process, so that the tenants fully understand why there is an increase, so that the landlord can be seen as trying to be empathetic to their situation, but also recognizing that the landlord is trying to operate a business,” said Noce.

Renters, Noce said, can try disputing the notice with the Residential Tenancy Board if the proper notification steps weren’t followed, but otherwise are faced with a tough decision.

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Confirmed by the Government of Alberta’s corporate registration system as the sole director of ARH Rentals, Postmedia contacted Hassan for comment on why rent in the building would be increasing so drastically in light of the building’s issues. However, Hassan declined to answer any questions, referring Postmedia instead to a property manager with ARH named Ryan, who refused to give a last name, but spoke on behalf of ARH regarding the Annamoe Mansion.

Ryan said, per Alberta’s Residential Tenancy Act, the change in rent wouldn’t go into effect for three months, during which time ARH would renovate the building to bring its systems up to date. He said rent changes also reflected the market in the area which he said was partially inflated due to the building sitting in the popular Wîhkwêntôwin (formerly Oliver) neighbourhood.

ARH didn’t specify how it would determine the market rent, but a scan of Rentals.ca show just a handful of apartments in the area ranging from $1,400 to $2,400 per month. The most expensive rental includes all utilities and has upgraded luxury amenities like a fitness centre, pool and sauna.

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Noce reiterated that there’s no protections in Alberta or Edmonton to prevent rent increases.

“If it was done properly in terms of notice and all other steps, renters are going to be faced with the difficult decision of either paying for the increased rent or finding a new place to call home,” said Noce.

Ultimately, Annamoe tenants say they know there’s no legal protection for their situation, which they said is part of the problem.

“I believe in other provinces there’s a cap on increases, but not here,” said Rockwood.

“It’s just making me not feel very safe. It’s not making me feel very good. Doesn’t instill a lot of trust and faith in me. It makes me feel like we need stronger rental protection laws,” said Kenny.

Noce said he “appreciated” that the Annamoe tenants might be angry with their landlord, but added that there were “other people” that were not helping the process, explaining that governments have a part to play too by lowering taxes and utility costs to make life more affordable for renters and landlords.

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For her part, MLA Janis Irwin, the NDP’s housing critic, tried introducing a private member’s Bill 205, which included rent controls in Alberta.

“Part of what really motivated me to push on this issue was I was hearing stories just like this one that’s happening at Annamoe,” said Irwin.

The bill, she said, would have capped rent increases at two per cent for two years and then at the pace of inflation for the following two years. Ultimately, Irwin said the UCP “killed” that bill.

“It’s incredibly frustrating because like the residents of Annamoe, an $1,800 increase? How many Albertans could manage that? Very few,” said Irwin.

Postmedia contacted Community Services Minister Jason Nixon, whose press secretary, Ashley Stevenson, said in an email that “Alberta will not go down the disastrous road of rent control.”

Stevenson’s email pointed to Ontario and B.C.’s rent control policies which she said “reduce the housing supply, stifle construction, and make housing even less affordable.” She highlighted the Alberta government’s $80 million contribution to rent support last year, which is set to increase to $114.4 million in Budget 2025.

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With no protections coming, Kenny and Rockwood said they’ll be moving from the Annamoe, expecting higher rent wherever they go, but at an increase they can manage.

“A lot of us are just sitting back and exploring our options, and we’re sitting in shock right now. So I hope something good comes out of this,” said Kenny.

For Rockwood, it’s a sour end to several years of tenancy.

“Honestly, we understand we don’t have a legal leg to stand on and they can do as they wish,” said Rockwood.

“It’s just sudden and poor sportsmanship.”

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