'A bit of hope': Hamilton tenants beat renoviction attempt by landlord at Ontario tribunal

A tenant facing renoviction from a Hamilton apartment building, where she says the landlord flips empty units for short-term rentals, has won her case at a provincial tribunal and is allowed to stay, along with six other tenants.

"It's a good relief," Melissa Gudgeon said. "Now I can breathe a little. It gives a bit of hope."

The tenants were given eviction notices in December 2021 by landlord Beni Colalillo who said he needed them out to do extensive renovations.

CBC Hamilton wrote about the conditions of the building at 2322 King St. E. last year. Gudgeon's bedroom window leaked on wet days, with a stream of water running down the wall and across the floor where it pooled by the door.

Black mould bloomed across the bathroom ceiling and her kitchen cabinets needed to be replaced, but all those repairs could easily be done with her still living there, she said.

Meanwhile, she'd see other units that were recently vacated get full renovations and upgrades and then be listed on short-term rental sites like Airbnb.

Colalillo had denied allegations about leaving existing tenants' units in a state of disrepair while renovating empty units to post on Airbnb. He declined to comment for this story.

'I am not persuaded,' says adjudicator

His case for renovictions was heard at the Landlord and Tenant Board (LTB) in December where he claimed he needed the seven tenants to move out so he could replace flooring, update plumbing and electrical, install new ventilation in the kitchen, update appliances, repair walls and ceilings, paint, and replace windows and doors.

But adjudicator Curtis Begg dismissed the renoviction request because the only building permit Colalillo had from the City of Hamilton was limited to making minor repairs to the drywall and replacing windows, estimated to cost $20,000.

Colalillo said he'd only included those two items in the permit because there wasn't enough space on the form to "fully detail" what he intended to do, according to Begg's decision.

However, the landlord also didn't call any contractors as witnesses to back up his claims, Begg said.

"I am not persuaded by the landlord's explanation with respect to why the permit is so under inclusive," Begg said. "Nor am I persuaded that the work approved to be done would require vacant possession."

The tenants were represented by paralegal Kimberley Farrell, who said the decision is significant because it "enshrines the true intention" of the Residential Tenancies Act.

Under that legislation, landlords wishing to evict tenants for major repairs and renovations must have a building permit detailing that work.

Tenant still waiting for unit repairs

While it's a relief Gudgeon and her daughter can stay in their home, she said most of the issues in her apartment have yet to been addressed. Her leaky windows haven't been replaced and the black mould in her bathroom was painted over, but is starting to return, she said. CBC Hamilton previously visited and confirmed the state of the unit last year.

Gudgeon's bedroom window has been leaking for years but has never been replaced, she says. On the right, a close up of the corner where water was seeping in in February 2023. (Samantha Beattie/CBC)

A bedroom from one of the units listed on Airbnb. (airbnb.ca)

Gudgeon said she also pays higher rent because the LTB recently allowed above-guideline increases at the building so Colalillo could recover costs related to upgrades in common areas. He's added security cameras, repaired laundry room floors, replaced the boiler system and put up a new fence, among other things, according to the LTB decision.

Because of the rent increase, Gudgeon's rent has gone up over 11 per cent — or $100 a month — since 2019. She said she currently pays about $850.

Colalillo is also trying to evict her through a separate process at the LTB by filing a N5 application for "interfering with others, damage or overcrowding." Gudgeon said the allegations, related to her trying to throw out an old couch and leaving the building's back door open, are retaliatory and baseless.

CBC Hamilton recently found fully renovated units in the building were still listed on Airbnb. The hosts have identical profiles that say: "We are thrilled to welcome guests from around the world to share our home and our love of the surrounding area."

A new short-term rental bylaw went into effect on Jan. 1 that bans commercial operators from renting out units on sites like Airbnb. The goal of the bylaw is to make these otherwise short-term units available to long-term renters, but the city said it must receive a complaint before it investigates.

The city said it can't access records about complaints before Feb. 24 due to the ransomware attack, but hasn't received any complaints related to the building since then.