Protecting Tenants from Renovictions: New By-laws and Regulations Across Ontario Cities

On November 14, 2024, the Toronto City Council adopted the Rental Renovation Licenses By-law, a significant step in protecting tenants from bad-faith evictions and renovictions. This new regulation aims to prevent landlords from evicting tenants under the pretense of performing major renovations only to re-rent the unit at a higher price while denying the original tenant’s right to return. If you’re unsure how these rules apply to your situation, a Landlord Tenant Lawyer Toronto can help you understand your rights.

Understanding Renovictions

A renoviction occurs when a landlord forces a tenant to vacate, citing significant renovations, repairs, or demolition as the reason. These evictions are often not conducted in good faith, and landlords fail to honour the tenant’s right to return. Ultimately, the unit is leased at a significantly higher rent to new tenants. A qualified Toronto Landlord Tenant Lawyer can help tenants challenge these practices.

Implementation and Impact

The Rental Renovation Licenses By-law will officially take effect on July 31, 2025, and will apply to tenants who have received an N13 notice (a notice of eviction due to renovations or demolition). Tenants facing such an eviction should contact their local city office to ensure their landlords comply with the new regulations. Consulting a Landlord Tenant Dispute Lawyer at Unified LLP is recommended to navigate the legal process.

New Requirements for Landlords

Under this by-law, landlords who issue an N13 notice to end a tenancy due to renovations must obtain a Rental Renovation License before proceeding. To qualify for the license, landlords must:

• Provide approved building permits for the renovation project.
• Submit a copy of the N13 notice issued to the tenant.
• Pay a $700 application fee.
• Notify tenants of the license application submission and provide details on how they can access information about eviction prevention and the Rental Renovation Licenses By-law.
• Post a Tenant Information Notice in the building, informing residents of the license application.
• Provide a report from a qualified professional confirming that the renovation necessitates vacant possession.
• Develop and submit a Tenant Accommodation or Compensation Plan.
• Offer tenants prescribed severance compensation if they choose not to return after renovations are complete.

If you’re a landlord unsure how to meet these requirements, a Landlord Lawyer Toronto can provide guidance to help you stay compliant.

Renoviction Measures in Other Ontario Cities

The Rental Renovation Licenses By-law is a significant move in Toronto, but similar measures are being implemented across other Ontario cities to curb renovictions, including:

1. Hamilton: Hamilton was the first city in Ontario to create a renoviction by-law, set to effect on January 1, 2025. Landlords must apply for a Renovation License within 7 days of issuing an N13 notice. The license will cost $715, with an annual renewal fee of $125. If tenants confirm in writing that they intend to return after renovations, landlords must provide alternative accommodation or compensation equal to the difference between the tenant’s current rent and the average market rent. Compensation must be paid 7 days before the start of each month during renovations. Fines for non-compliance range from $500 to $10,000 for individual landlords and $500 to $50,000 for corporations.
2. Ottawa: On May 1, 2024, Ottawa City Council passed a motion to review Hamilton’s by-law and will implement their own. The anti-renoviction by-law is expected to be introduced in December 2024, following approval by the Planning and Housing Committee.
3. London: On September 24, 2024, London’s City Council passed its Rental Unit Repair License by-law. Landlords must obtain a license within 7 days of issuing an N13 notice, which costs $600 per unit. Non-compliance penalties range from $250 to $2,500. The by-law will come into effect on March 1, 2025.
4. Kitchener: Kitchener has declined to implement renoviction-specific bylaws but has introduced a Rental Replacement bylaw. This bylaw requires landlords demolishing or converting six or more rental units to offer tenants alternative housing or compensation. Compensation includes waiving rent for a year or paying the equivalent of 10 months’ rent.
5. Mississauga: Similar to Ottawa, Mississauga’s City Council passed a motion on November 13, 2024, to review implementing their own renoviction by-law. The proposed by-law will be introduced to the General Committee in early 2025.
6. Sudbury: On October 24, 2024, Sudbury confirmed it would not pursue a renoviction or demolition by-law, citing concerns that increased legislative requirements could hinder economic growth and cause unintended community degradation.
7. Other Cities: Windsor, Brampton, Kingston, and Barrie have not indicated that they will implement renoviction by-laws. However, cities like St. Catharines, Guelph, and Owen Sound have announced plans to consider creating their own bylaws to protect tenants from renovictions.

Protecting Tenant Rights

This new by-law enhances tenant protections by ensuring that landlords must justify the necessity of a tenant’s eviction for renovations. Additionally, it reinforces the right of first refusal, ensuring that tenants who wish to return can do so once renovations are complete. If you’re unsure of your rights or facing an unfair eviction, consulting a Landlord Tenant Lawyer can provide the clarity you need.

What Tenants Should Do

Tenants who receive an N13 eviction notice should:

• Verify that their landlord has applied for and received a Rental Renovation License.
• Contact their local city office for more information about their rights under the new by-law.
• Seek legal advice if they suspect the eviction is being done in bad faith. A Landlord Tenant Dispute Lawyer can offer invaluable assistance.

The Rental Renovation Licenses By-law represents a major effort by the City of Toronto and other Ontario municipalities to curb unfair evictions and ensure that tenants are not displaced unnecessarily. By introducing strict requirements for landlords, these cities aim to protect tenants from renovictions and uphold housing security for all residents. Whether you’re a tenant navigating your rights or a landlord seeking compliance, working with an experienced Toronto Landlord Tenant Lawyer can help you stay informed and protected.

For more information regarding Toronto’s Rental Renovation Licenses By-Law, visit: City of Toronto – Renovictions By-law Development.