A month before an initial hearing on an appeal to the Ontario Land Tribunal (OLT) by the owners of a Peterborough townhouse complex of a city council decision to deny their request to convert the rental units into condominiums, tenants are waiting to find out if their rents are going to increase and by how much.
That’s because Burlington-based Simple Investor Real Estate Group (SIREG) Management Inc., which owns the property at 700 Parkhill Road West, has advised residents of the complex’s 128 three-bedroom rental units that the company intends to apply to the Landlord and Tenant Board for an above-guidance rental increase (AGI), stating the increase is necessary as a result of capital expenditures and building improvements made at the property since SIREG purchased it four years ago.
SIREG’s intention to apply for an AGI follows Peterborough city council’s recent decision to deny the company’s request to convert the rental units into condominiums.
Condo conversion plan and tenant opposition
SIREG first announced its plan to apply to the City of Peterborough for a condominium conversion — known as a draft plan of condominium — by delivering notices to the tenants of 700 Parkhill in May 2025.
The term “condominium” in real estate refers to the manner of ownership of a series of units. In condominiums, each unit is independently owned whereas a rental apartment block must be owned entirely by one entity.
In November 2025, residents were informed that a public meeting under the Planning Act for SIREG’s draft plan of condominium would take place during city council’s general committee meeting on December 1.
Upon receiving these notices, long-time 700 Parkhill residents Jennifer Lacey began researching the implications of a condominium conversion and connecting with representatives at the city and SIREG.
Lacey would go on to give a delegation at the December 1 public meeting to oppose the conversion application, citing concerns about affordability, maintenance, and tenant security.
City council rejects condo conversion application
At the public meeting, council considered a report from city staff that recommended council deny SIREG’s request. In part, the report indicated that staff were not in support of the proposal “on the basis that it does not provide an opportunity for ‘affordable ownership’ and would reduce the rental segment for 3-bedroom units.”
“Approval of this application is expected to have an undesirable effect on the City’s rental housing market and affordable housing supply and does not meet the Official Plan’s intent to preserve and encourage rental and affordable housing,” the report concluded.
After hearing delegations from both SIREG and tenants and after debating the item, council voted to reject the application and subsequently ratified that decision at a city council meeting on December 8. Both votes were unanimous.
“I appreciate everything the city did,” Lacey told kawarthaNOW. “The staff report was very balanced and fair.”
City staff report cites affordability and housing supply concerns
One of the reasons city council decided to deny SIREG’s request was that the conversion would not move the city towards meeting its housing target of constructing 4,700 new dwellings by 2031, which was part of the city’s 2023 municipal housing pledge to the Ontario government.
Another reason was that SIREG’s original price of $409,900 for a condo unit was above the city’s minimum affordable threshold of $311,000 for a three-bedroom unit. At the December 8 council meeting, SIREG lawyer Jasdeep Dhillon stated the price would be reduced to $311,000.
In its application, SIREG indicated current tenants would have the first right of refusal on purchasing their units, and would be protected from eviction if someone else purchased their unit. However, tenants such as Lacey have said that, even if they wanted to purchase their unit, they would not be eligible for a mortgage.
“I don’t think it would be a good investment to purchase my unit,” Lacey added.
Although 40 per cent of the units at 700 Parkhill are designated as affordable housing and current tenants are protected from rental increases as a result of condominium conversions, future tenants of condo units would not have the same protection. As indicated in the staff report, this would lead to the overall reduction of affordable units in the area as tenancy changes hands.
City staff also noted the potential long-term consequences of removing this number of affordable rental units from the wider Peterborough rental market, as the 128 three-bedroom rental units at 700 Parkhill represent 17 per cent of all such units in the City of Peterborough.
For Lacey, it is this type of long-term impact that is especially concerning.
“It’s great that I’m protected, but for future tenants they don’t have that protection,” she said.
OLT appeal and potential rent increases
During the December 8 council meeting, Dhillon indicated there was “a good possibility” SIREG would appeal to OLT if council ratified its earlier decision to deny the condo conversion application.
In January, SIREG filed its appeal with OLT, and an initial hearing has been set for May 7 to identify the involved parties, specific issues being raised, and procedural matters.
Lacey told kawarthaNOW that she has been working to stay involved with the appeal and is passionate about advocating for her fellow tenants to ensure their voices are heard.
“If there’s going to be discussion and decisions surrounding my housing, I want to be at the table,” she said. “It’s difficult seeing two positions of power being able to make decisions for people who don’t have a say.”
As part of the condominium ownership structure, unit owners are required to pay fees to support communal facilities and building maintenance. In its condo conversion application to the city, SIREG indicated that the condominium fee reserve would pay for ongoing capital repairs, but in lieu of this approval rent increases would be used to address these costs.
Tenants at 700 Parkhill are skeptical, alleging that SIREG has a history of absentee landlordism and neglecting both routine and essential maintenance requests,
“I’ve had a maintenance request submitted since November that hasn’t been addressed,” Lacey said. “My neighbours have said that they don’t have a functioning bathtub or that their toilet hasn’t been working for three months.”
In Ontario, landlords can legally increase rent above an annual guideline — 2.1 per cent in 2026 — only by applying to the Landlord and Tenant Board for an AGI. One reason a landlord can apply for an AGI is if they have incurred eligible capital expenses as a result of extraordinary or significant renovations, repairs, or replacements. The maximum increase allowed is three per cent over the annual guideline in a single year, and nine per cent over three years.
At this point, SIREG has not filed the official AGI application with the LTB, and it remains unclear whether rental increases would proceed should the company’s OLT appeal be successful and the company proceeds with condo conversion.
When discussing the impact of the ongoing OLT appeal and potential rent increases, Lacey said tenants are “being used as part of a game, being used as a commodity.”
