A Fort McMurray couple who lost everything in the fire has filed a complaint with the province after the lease they took over upon returning to the city went up hundreds of dollars between June and July.
“It is mandatory for them to have the rental rates returned back to what they were April 30th.”
– Bob Couture, director of the regional emergency operations centre in Wood Buffalo
Angelina and Pierre Gionet’s condo burned to the ground when the wildfire swept through in May. They needed to return to their jobs on June 4th, so they made arrangements to sublet from an acquaintance who would not be going back.
But when the Gionets met with property management on June 21st to switch over the banking information, they were asked to sign a new agreement that boosted the rent from $1,350 to $1,850.
The couple were aware that the Regional Municipality of Wood Buffalo, which includes Fort McMurray, was still in a state of emergency, and that a rent freeze holding all rates at April 30 levels was in effect — but with nowhere else to go, they felt they had no choice but to sign on to the 37 per cent increase.
“We looked at each other and we said, ‘What other choice do we have in this situation?'” Angelina said.
“You don’t have the power to move out. I mean, where do you go?” she said. “If I had the choice, I would have said no. I would have gone somewhere else. But because we don’t have the feasibility to just have a place to stay overnight, we were stuck.”
The cost of renting a one-bedroom, one-bathroom unit in this building on King Street went up $500 for the Gionets. (Angelina Gionet)
When contacted by CBC News, LIAM Properties Inc., which runs the building, declined comment on the situation.
Bob Couture, director of the regional emergency operations centre in Wood Buffalo, is aware of the Gionets’ case. He said there’s enough information to refer it to Service Alberta’s Consumer Investigations Unit, which is responsible for investigating complaints of price gouging.
Couture wouldn’t speak to specifics, but reiterated the how the rent freeze works. If a condo owner was charging $1,000 rent on April 30, the same rate would apply in June.
“So if someone increased in June, the rent to, let’s say for example, $2,000 a month, that would be subject to investigation,” Couture said.
“It is mandatory for them to have the rental rates returned back to what they were April 30th.”
The province ended Fort McMurrary’s state of emergency on July 1st.
Tina Faiz, spokeswoman for Service Alberta Minister Stephanie McLean, said in an email that the consumer investigations unit is involved.
According to Faiz ,the Gionets’ complaint hasn’t been the only one received by her ministry. In total, there have been 10 so far.
“We understand the Fort McMurray wildfire had been a catastrophic experience for many tenants and landlords,” she said. “We encourage tenants and landlords, including management companies, to find a fair and reasonable resolution to any issues that may arise.”
The Gionets said this apartment is two times smaller than their old one that burned down and costs $500 more a month in rent. (Angelina Gionet)
Gionet said the 500-square-foot, one-bedroom, one-bathroom apartment on King Street that she and her husband are in for the next three months is actually two times smaller than their old three-bedroom, two-bathroom condo.
And that place only cost them $1,800 per month.
Residents with concerns about the increase in the cost of services in Wood Buffalo should contact the PULSE line at 1-780-743-7000.