Andrea Markey
Northern News Services

Yellowknife (Nov 02/05) - Soaring fuel prices will result in rent increases for hundreds of Yellowknife apartment dwellers over the next few months.

Last week, Northern Properties handed out rent increase notices to tenants in each of its 925 units in its more than 30 apartment buildings and townhouse complexes.

The three to five per cent increase, effective Feb.1, works out to between $40 and $150 per month, depending on the size of the unit, said Darren Pelley, Northern's regional property manager.

"It's hard, but at two million litres of fuel per year for those buildings, at 90 cents per litre - there you go," he said.

"In a lot of cases, the rental increase isn't going to cover off what the oil is - and who knows where the price of it is going to go?"

A unit that cost $100 to heat per month two years ago now costs the company $200, he said.

Pelley cites increased oil prices, a five per cent increase in electricity, along with continued capital improvements as reasons for the increase.

"Since 2000, the company has spent $8 million or more on its properties," he said. "We aren't just driving up rent and doing nothing with it."

Concerned tenants visited Northern Properties office on Friday, and called Yellowknifer.

Many expressed frustration with the notice and feel they shouldn't be paying the bill.

Peter Epp has lived in his apartment for five years, but is thinking of moving after this latest increase - the third one in as many years.

"Forty dollars (per month) the first year, $40 the second, $50 this year - that really adds up," he said. "I don't see $50 worth of improvements."

The renovations the landlord talks about should be business expenses, he said, adding the tenants shouldn't get stuck with the bill.

Tenants in Mackenzie Management's two buildings will see an increase of between $25 and $60 - which amounts to a less than five per cent increase - effective Dec. 1.

"We'll probably be taking a bit of a loss with the way the rental market is, but we have to be competitive," said a company spokesperson.

Yellowknife Dairies locked in its fuel prices at a lower cost and has no plans to increase rents on its 69 units at the moment, said property manager Jennifer Eggenberger.

"That might change once we go over the costs and see what the increases have been," she said. "We have only seen one month of heating season and it really hasn't been cold."

According to the Residential Tenancies Act, landlords can only increase rents once per year and must give at least three months notice. There is no set limit to the amount of the increase.