Residents and unit owners at a Kitchener condo complex say they have been left facing utility disconnect threats due to the mounting financial turmoil of property management firm SIREG Management Inc. Public court filings show SIREG Management filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act last month. Shortly after, the Condominium Management Regulatory Authority of Ontario (CMRAO) suspended SIREG’s property management licence and launched an investigation following complaints regarding mismanaged client funds. The fallout is hitting home at a residential condo building on Sydney Street South in Kitchener, where tenants say they received notices from Enova Power earlier this month warning that common area electricity would be shut off due to unpaid bills. Tenants left in the dark “The notice stated that if the common ways energy was shut off, the building would be condemned,” said Eilish Veuger, a tenant at the Sydney Street building. “I’m very distressed. I’m really scared that the community here is going to get broken up, that I’m not going to have a home.” Enova Power told CTV News in a statement that it suspended the disconnection process last week and power will no longer be shut off. However, residents continue to navigate conflicting instructions and demands for rent payments from various parties. SIREG operates as the property management arm of The Simple Investor, founded by a Toronto realtor. It is believed that SIREG manages dozens of properties across Ontario. The business model involves purchasing condo buildings, selling individual units to real estate investors, and managing rental agreements on their behalf—meaning many individual owners have never met their tenants. Unit owner shares her side One unit owner, who requested to not be named publicly, said SIREG notified investors last month that rent distributions would cease due to cash flow issues. “It’s not very clear, and everybody’s confused. What’s made it really worse is the condo board members have resigned,” the owner said. The owner added that SIREG’s unpaid bills continue to pile up, claiming the building’s reserve fund has been left empty. “I think the water amount owing at Sydney was $106,000. And what do we do about it? It’s not our fault, and we’re a victim of that as well.” Advocacy group ACORN Waterloo Region has stepped in to assist tenants navigating their legal rights amid the uncertainty. “It’s awful. Businesses sometimes have financial issues. Sometimes businesses fold. But they’re not gambling just with money here. They’re gambling with people’s houses,” said Elliot Wand, a representative with ACORN Waterloo Region. What’s next? Veuger said she is working to start a tenant coalition to help residents in her building move forward. Veuger showed CTV News several documents she and her neighbours received in the last month, some from SIREG and other people claiming to be owners of the units. She said it is stressful and confusing as she is uncertain who she should be paying rent to moving forward. The Condominium Authority of Ontario (CAO) told CTV News in a statement that it is working with the CMRAO, adding that they have been meeting directly with a number of owners of SIREG-managed properties. “We have also been directing owners who have reached out to speak to legal counsel and work with the Landlord Tenant Board to coordinate takeover of leases,” said a representative with the CAO. The CAO said tenancy issues fall outside of their mandate but once these owners take over the corporations, one of their duties is to create or update tenancy records. The owner of Veuger’s unit said she and other owners are also working together to figure out the next steps and said in the coming weeks they are hoping to stabilize the situation, so it is more clear for everyone. “We’re amateurs. That’s why we hired a management company. We need time to learn but we’re doing the best we can,” she said. “We have the best interest of tenants there.”
