Inuvik (Jan 21/05) - The power of the petition may have yielded a victory.

Northern Property Real Estate Investment Trust (NPREIT) is now having second thoughts about its planned rent increases.

In a press release issued by NPREIT Jan. 14, the company announced it "plans to reconsider a number of rent increases for which tenants in Inuvik recently received notice."

The increases, some as high as 40 per cent, caused local resident and home owner Jenetta Day to start a petition for rent control in the territory. On Monday, Day commented about Northern Property's latest position and how it would affect her petition, already signed by more than 600 supporters.

"Northern Property is only one landlord and I still feel strongly that rent control is needed," she said.

In the NPREIT press release, CEO and president Jim Britton responded to criticism about his company's rent increases.

"We have received a number of complaints from tenants as well as media reports that some of the proposed increases are excessive," he said. "We agree. Thirty to 40 Inuvik tenants have received rent increases that are not reasonable (and) our staff will be meeting with each of these tenants to express our regrets and to resolve rental issues on a case by case basis," Britton said.

When The Drum contacted Britton, he said he didn't anticipate the strong reaction Inuvik residents.

"If we had expected it, we wouldn't have done it," he said. "It wasn't very well thought out."

Britton said many of the acquired properties were "very old and tired, and we don't intend to leave them that way."

"We're a business. Over time we have to get that (investment) back," he said. "But we have to be mindful of the circumstances of our tenants."

The NPREIT press release cited $4 million in capital improvements on the properties and rapidly increasing utility rates as reasons for the rent increases.

But according to the Town of Inuvik, which provides water for the municipality, rates have not increased for five years. Northwest Territories Power Corporation residential electricity rates for Inuvik have remained unchanged since November 2003.

As for fuel oil and natural gas prices, Inuvik Gas has increased its rates 4.5 per cent since October 2003.