Tenants Win Illegal Rent Increase Case: MacPherson v Dugas 2024

Dispute Summary

Tenants applied for an order determining that the Landlord collected or retained money illegally by increasing the rent above the guideline amounts without a valid N10 agreement. The Landlord served N10 agreements on the Tenants, but the Tenants did not counter-sign them. The Landlord also served an N1 notice of rent increase, which the Tenants partially paid.

Determinations

• Landlord collected rent in excess of the amount allowed by the Act
• Parties agree lawful rent as of May 1, 2020 was $1,405.00
• Landlord served N10 agreement on September 30, 2021 to increase rent to $1,450.00 effective January 1, 2022, but Tenants did not counter-sign
• Tenants only paid increased rent for 11 months, not 12 consecutive months as required for N10 to be valid
• Landlord served second N10 agreement on October 30, 2022 to increase rent to $1,525.00 effective February 1, 2023, but Tenants did not pay this amount
• Landlord served N1 notice to increase rent to $1,529.75 effective April 1, 2024, indicating it was above guideline and required LTB approval
• Tenants paid $1,440.12 from April 1, 2023, which was a 2.5% guideline increase
• Landlord did not require Tenants to sign N10 agreement, thinking they would agree due to capital improvements
• Without Tenant signatures, N10 agreement is not valid, and rent can only be increased via N1 notice

Arguments and Actions