Tenants say Michael Klein is treating them like ‘garbage’ — however in a uncommon media interview, Klein denied the tenants’ allegations and stated he follows all Ontario legal guidelines
TORONTO—Carrying indicators and devices, a gaggle of tenants dealing with eviction staged a protest one night final week in entrance of a house in certainly one of Toronto’s most upscale neighbourhoods. They stated the house owner was Ontario’s most prolific “renovictor,” Michael Klein.
“He’s treating people like absolute garbage,” stated Billy Thornhill, a Toronto tenant dealing with eviction who attended the Forest Hill protest.
“He’s got a very bad heart — a very cold, cold heart.”
In a uncommon media interview with TorontoToday final week, Klein denied all allegations of improper or unlawful actions.
Thornhill is certainly one of greater than 25 tenants who acquired eviction notices this summer season and fall at a property in Toronto’s Mount Dennis neighbourhood, owned by a Klein-affiliated firm.
Thornhill is a single father who has lived in his condominium at 80 Guestville Ave. for greater than 20 years. He stated he doesn’t need to depart.
“I know everybody,” he stated. “I know the church across the street. I know all the caretakers that clean the school next door. I know everybody and everybody around there knows me.”
Much more than the native connections, nonetheless, Thornhill stated he’s petrified of dropping the rent-controlled condominium the place he lives together with his son, paying about $1,100 month-to-month.
If evicted, Thornhill stated it could be subsequent to unimaginable to seek out one other place he may afford.
“Where are you going to go? What are you going to do?” stated Thornhill. “What, go to Canadian Tire and buy a tent?”
In October, the tenant advocacy group ACORN revealed a report linking Klein to 21 properties provincewide.
The report alleged Klein is Ontario’s greatest “renovictor” — and that the companies he directs have systematically bought properties that provide cheap hire, subsequently mass-evicting tenants and charging new residents a lot greater costs.
The report alleges Klein has been capable of “hide” behind a number of separate companies that personal the properties, and that his affiliated buildings include an estimated 680 items which can be present process renovictions throughout seven Ontario cities.
Klein vehemently denied the allegations.
“There’s no such thing as renoviction,” he stated.
Klein added that all the pieces his affiliated firms do is authorized and in keeping with provincial regulation.
He stated his affiliated firms have by no means confronted any authorities penalties for evictions — and alleges that ACORN has repeatedly slandered him to the purpose of contemplating authorized motion.
“They may force my litigious hand,” he stated.
The protest
On the night of Dec. 18, protestors from a number of Klein-affiliated properties throughout the province sang landlord-themed Christmas carols and delivered speeches in entrance of a Forest Hill residence linked to the businessman, whereas a number of neighbours seemed on.
Thornhill knocked on Klein’s door, however no person answered.
Final week, Klein advised TorontoToday that he owns, however doesn’t dwell on the property — a member of the family resides there as a substitute.
“They made fools of themselves,” he stated, of the protestors.
Nevertheless, Eastwood Burnett, an ACORN member and the tenant of one other Klein-affiliated property in Toronto, stated organizers have tried to achieve the Toronto businessman in quite a lot of methods with out success.
Klein’s companies haven’t any actual head workplace and the one folks obtainable to tenants are property managers who don’t name the photographs, Burnett stated in an emailed assertion.
“Klein left us with no other option,” he stated. “We’ve tried everything so what other choice do we have?”
An ominous landlord letter
Thornhill stated his renoviction hassle started in late August within the type of a letter from constructing administration.
“We want to let you know that Guestville Apartments Inc. is starting a major renovation project,” it learn. “Unfortunately, your unit will not be suitable for living in during this renovation period.”
The letter, obtained by TorontoToday, stated the corporate had “no choice” however to finish Thornhill’s lease as of Dec. 31, 2024 — and that the renovations the owner had deliberate would take seven to 10 months.
It stated that underneath the Residential Tenancies Act, Thornhill was entitled to a few months’ hire.
It added, nonetheless, that if he voluntarily agreed to depart inside a month the corporate would pay him $6,000 “in good faith.”
Thornhill stated he laughed when bought the doc.
“What are you going to do with $6,000?” he stated. “You’d be lucky to [use it to] pay first and last months’ to move in somewhere.”
Klein stated the renovations at 80 Guestville Ave. are vital and lengthy overdue.
“These are 50-year old buildings that have never been renovated,” he stated, noting the items want new kitchens, bogs and flooring.
Thornhill disagreed.
Displaying TorontoToday his condominium on Thursday, he stated all it wants is an efficient coat of paint. “It’s a perfect place. These places are dynamite.”
Thornhill alleged Klein’s motive for the renovation is disingenuous.
“Anybody with half a brain could figure out what’s going on here,” he stated. “It’s all about money.”
Klein denied the allegation.
Deceptive letters?
York South-Weston Tenant Union organizer Bruno Dobrusin stated his group has seen a sample at Klein-affiliated buildings provincewide.
He alleged that one of many key ways utilized by the house owners to get tenants to vacate their houses is to benefit from their lack of know-how of their authorized rights.
Below Ontario regulation, landlords can apply to the Landlord and Tenant Board (LTB) by way of a so-called N13 utility for the correct to quickly evict a tenant as a way to full a considerable renovation.
Tenants are allowed to combat the appliance, nonetheless, in the event that they consider it’s attainable for development to be accomplished whereas they dwell there, or in the event that they assume the appliance is in “bad faith.”
Ought to the development go ahead, tenants are additionally, crucially, allowed to return to their residence upon the development’s completion, paying the identical hire fee as earlier than.
Dobrusin stated nonetheless, that none of that is made clear to tenants in Klein-affiliated buildings.
“Most people do not know they have a right to a hearing,” he stated. “It sounds like a done deal.”
Klein denied the letters are deceptive. “It’s very clear and concise,” he stated.
Tenants allege poor constructing maintenance
Dobrusin alleged that Klein-affiliated firms additionally use poor upkeep as a lever to strain residents to depart.
Nadine Lewis, one other longtime tenant at 80 Guestville Ave. who acquired a letter like Thornhills’, stated the property has been “horrible” since a Klein-related agency took possession in 2023.
Lewis stated there have been days-long stretches the place the water and warmth have been turned off, rubbish is left about, and this summer season, flooding within the car parking zone was so extreme that residents may barely get out and in of their automobiles.
The mom of three, who has lived in her residence for greater than sixteen years, stated when issues have arisen, the property’s upkeep employees have been near-impossible to achieve.
“It’s like you’re talking to a dead end,” she stated.
Klein stated his affiliated firms don’t use upkeep points to strain tenants.
Water has typically been turned off, but it surely’s been within the regular course of renovating empty items, he stated.
LTB denied Klein-affiliated firm an N13 request final month
Sam Mason, a Toronto lawyer, alleged that pressuring tenants to vacate their unit isn’t the one approach that Klein-affiliated companies have sought to extend their revenue.
He stated he knew of situations the place employees of Klein-affiliated firms negotiated “illegal rent increases” with tenants in change for dropping proposed main renovations that might power a resident’s eviction.
In help of that view, Mason, who stated he’s appearing for greater than a dozen tenants preventing renovictions in Klein-affiliated properties, pointed to a November choice by an LTB tribunal.
Within the choice, a Klein-affiliated firm was denied an N13. The tribunal stated it denied the appliance, partly, primarily based on proof the corporate had negotiated a hire enhance with a separate tenant in change for withdrawing an N13.
Below the specter of the N13, the resident had agreed to pay almost $500 extra in hire per thirty days for his or her similar unit, in keeping with the tribunal.
The tribunal additionally denied the N13 as a result of the proposed renovations — which mirror these deliberate for Thornhill’s unit — “contain[ed] few valid grounds for the request for vacant possession.”
Klein stated the LTB tribunal’s choice might be appealed.
He stated the scenario was advanced, that rumour proof had been launched, and that there are two sides to each story. He didn’t present further specifics.
Proper to return
Thornhill stated he’s fearful that if he’s evicted utilizing an N13, he may not be allowed again to his condominium, regardless of it being his authorized proper.
Marcia Stone, chair of Toronto ACORN’s Weston chapter, stated that worry has foundation in actuality.
In Hamilton and Toronto, tenants of firms un-affiliated with Klein have been denied the correct to return, in keeping with studies by CBC and Toronto.com.
“It’s a simple financial calculation for the landlord. The money they can make from pushing out long term tenants and then doubling rents for someone new far outweighs the fines they might have to pay,” she alleged, in an emailed assertion.
Klein nonetheless, denied this has ever occurred at properties affiliated together with his firms.
“We offer [the right to return] for every tenant [who] obliges by the N13 rules,” he stated. “[They] are free, and allowed, and eagerly welcomed back into their units.”
He stated tenants of 80 Guestville Ave. who vacate their items for renovation might be “100 per cent” permitted to return after the development is accomplished, paying the identical hire as earlier than.
As proof, Klein stated his affiliated firms have by no means confronted any penalties on the LTB over failing to permit tenants to maneuver again in.
“You cannot find one case that is even outstanding where we have failed to oblige [with a right to return] as per N13,” he stated.
Mason stated such an announcement isn’t as simple because it seems, nonetheless.
He stated as a way to be charged with such a penalty, the burden is positioned on the tenant to file a T5 utility.
Mason stated T5s are usually not widespread as a result of they require a tenant, “who is probably evicted into more expensive or unaffordable housing” to provoke a authorized continuing towards their former landlord.
He stated these processes could take years.
Dramatic latest enhance in N13s
Stone stated using N13s within the province has turn into extra prevalent lately.
“[Ontario Premier Doug] Ford has allowed Ontario to be open for business and a lot of these corporate landlords are doing business. They’re doing exactly that — using the tenants as a bank machine,” she stated.
In a latest report, ACORN discovered using N13s elevated by about 300 per cent from 2017 to 2022 — from about 300 in 2017 to about 1,000 in 2022.
In its report, ACORN known as on municipal governments to cross robust “anti-renoviction” bylaws, which some have lately finished.
In November, Toronto’s metropolis council handed a brand new renovation licence bylaw aimed toward stopping renovictions.
Amongst different issues, it can require a landlord who evicts a tenant for a significant renovation to offer the resident with comparable housing at an identical hire throughout development — or to offer funds to make up the distinction between their present hire and the hire they have to pay in the course of the development interval.
The bylaw will come into power in July 2025. However till then, tenants should depend on the LTB.
Combating N13s
Provincewide, dozens of tenants of Klein-affiliated properties are preventing or planning to combat their N13s, in keeping with ACORN.
Amongst them is Thornhill.
The longtime Mount Dennis resident is defiant, however acknowledged the stress of the N13 course of has been exhausting on his psychological well being.
“Can’t sleep — depression and anxiety is through the roof,” he stated.
Regardless of this, he stated eventually week’s protest that he’s decided to combat.
“I’m not leaving, I don’t care what happens,” he stated.
