A large number of University of Waterloo students faced a rather shocking phone call on September 1st, 2014. The construction of One Columbia, a 22-story luxury apartment building for student housing, had been delayed until further notice. With three days left until the anticipated move-in day and about a week until classes were to begin, many students and their families alike were confounded with the unexpected notification by Schembri Property Management. Schembri Property Management later blamed the contractor for not being able to get appropriate labour on the site, thus causing delays in the construction. In a more recent update, the company reassures that they have forced subcontractors to bring extra labour to speed up the remaining work to be done. Such a labour shortage should have been foreseen weeks in advance so that the company could have increased the labour, thus speeding the construction process.
It was not long ago that the company had listed their luxury high rise for lease starting from Fall 2014. Each suite was to be fully furnished, consisting of 5 rooms with a private ensuite washroom. The suite was to be equipped with high end appliances and fixtures, and also included utilities like unlimited internet usage. Many indoor and outdoor recreation facilities were to be included for student use. Many students, therefore, eagerly signed up for this luxury lifestyle for a mere $655-$730 per room per month.
Upon notifying tenants of the construction delays, Schembri Property Management offered a few alternatives for the tenants while the construction finished. The company, which provides off-campus housing to students in the Waterloo and Oshawa regions, offered to transfer the leases to their other properties, pay pro-rated rent based on delayed occupancy or place the would-be residents in a hotel, paid for by the company. The alternatives, however, did not appeal to most students; they were displeased with the management and wished to terminate their leases. Students are spending countless hours writing letters and emails, and making phone calls to the company demanding for their deposits. Schembri Property Management failed to address this as an option and has yet to provide students with an answer to their requests. In fact, they neither reply to calls nor written letters, providing only occasional vague descriptions of the state of construction.
In order to maximize their options, many families have analyzed their lease and its conditions. As per the Ontario Residential Tenants Act, 2006, Rent deposit, Prospective tenant 107, “A landlord shall repay the amount received as a rent deposit in respect of a rental unit if vacant possession of the rental unit is not given to the prospective tenant. 2006, c. 17, s. 107.” However, students and their families who raise such claims are given no response by Schembri Property Management. Due to the rising concern of students and their unstable accommodation situation, the Waterloo Public Interest Research Group (WPIRG) organized and led a march to the Schembri Property Management office on Friday September 19, 2014. Although the developer, Gordon Schembri, was not there, the students believe the commotion they caused ought to get more attention on the situation. The company has yet to release any statements regarding termination of leases or the student march and their demands.
Surprisingly, this is not the first such experience for Schembri Property Management. It is reported that the company had earlier deceived tenants with luxury housing on online photos but presented them with an old and torn house for the first half of their contracts. The company then consciously gave up control of the building to another housing management company without notifying the tenants. Furthermore, an online business review website reports a complaint against the company, dated 2013, for failure to resolve complaint issues. The same business review website provides complaint-free profiles of other Waterloo property management companies like Hoffaco Property Management and In8 Developments.
With the current state of construction, it is unlikely that the project is going to be done until October or November at the earliest. It is in the best interest of students to sign a new lease contract, regardless of whether the Columbia One lease has been terminated or not. Many students refrain from signing a new lease due to the possible financial burden of paying for two leases. The Ontario Residential Tenancies Act, however, clearly states that they are not obligated to rent the property and therefore students can raise the issue again when the contractor has completed the project.
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