Northview REIT launches audit following CBC investigation of illegal pet fees

One of the North's biggest landlords has begun an internal review and hired an independent auditor in the wake of a CBC investigation that found tenants were charged thousands of dollars worth of illegal "pet fees."

CBC News revealed earlier this week that Northview REIT was charging illegal fees on top of ordinary rent for having pets in pet-friendly buildings. Over the course of a tenancy, the fees could amount to hundreds or, in some cases, thousands of dollars.

In a notice distributed to residents dated Nov. 22, Northview called the charges "a potential accounting error."

"As building owners this situation is deeply troubling," the notice reads. "Please understand that we are treating this very seriously and have begun an extensive internal review to understand what may have happened; how it could have happened; and what can, and should, be done going forward to make it right."

"They've been told 19 times to stop," said Ron Wolowich, a Northview tenant who spoke to CBC for the investigation. "How can you tell me that you don't know what is going on?"

The notice also states that the company has retained an independent auditor to "review resident accounts and identify any inconsistencies in our policies, or inaccuracies in our approach."

Northview's corporate and Yellowknife offices are closed over the weekend, and no one was immediately available for comment.

Thousands of dollars in fees

The notice is the first response from the company, which has not publicly commented on CBC's findings.

Recently signed lease agreements obtained by CBC showed the company was illegally collecting pet fees amounting to $25 per pet, per month.

Under the Northwest Territories' Residential Tenancies Act, landlords can collect a pet deposit from tenants. It is similar to a damage deposit and must be refunded once the tenant moves out, as long as there isn't any major damage to the unit. Under the Act, landlords are allowed to charge a maximum of 50 per cent of one month's rent for a "pet deposit."

But several rental officer decisions show Northview has not been refunding the pet fees it has been charging and some tenants have paid thousands of dollars more than what Northview is legally allowed to collect.

Though the N.W.T.'s chief rental officer, Adelle Guignon, has previously stated in decisions that the fees are "contrary to the [Residential Tenancies] Act and therefore invalid," Guignon would not say if she plans to bring Northview to court over the issue.