September 9, 2025
On July 31, 2025, the City of Toronto officially enacted the Rental Renovation Licence Bylaw, which is a landmark regulation intended to restrain “renovictions” and better protect tenants from bad-faith evictions disguised as renovation work. This new initiative is widely supported by Mayor Olivia Chow, City Council, and tenant advocacy organizations, as the bylaw marks a significant policy shift in Toronto’s ongoing effort to preserve affordable rental housing and address the growing housing crisis.
This article explains what renovictions are, outlines the core features of the new bylaw, and explores what landlords and tenants both need to know about their rights and obligations under the new legal framework.
What is a Renoviction?
In Ontario, there are two broad categories of evictions: “for cause” (or behavioural) evictions and “no-fault” evictions. Behavioural evictions occur when a tenant breaches their lease. The breach occurs through certain behaviours of the tenant, such as by failing to pay rent, causing damage, or disturbing other tenants. In contrast, no-fault evictions are permitted under specific circumstances unrelated to tenant conduct, such as when a landlord wishes to occupy the unit themselves or complete substantial renovations.
A “renoviction” is the term used to describe the eviction of tenants under the conditions of performing major renovations. While landlords are legally permitted to request vacant possession of a rental unit for substantial renovations under Ontario’s N13 notice provisions, renovictions occur when these claims are made in bad faith. Once a tenant vacates, the unit is often rented out again at significantly higher rates, especially in buildings that are not subject to Ontario’s rent control laws. Although most rental units fall under the provincial rent increase guidelines, the rental units that are first occupied after November 15, 2018, were exempt.
These practices have disproportionately affected low-income and marginalized tenants and have been widely criticized for undermining housing stability. In 2025, landlords are only permitted to raise rent by 2.5% annually, unless they apply for an above-guideline increase, which is a lengthy and heavily scrutinized process. However, once a tenant leaves, new tenancies can begin at a significantly higher market rent. This incentivizes some landlords to force out long-term tenants in order to maximize profits.
Years of Tenant Vulnerability
Toronto’s housing market has become increasingly complex, with soaring rents, limited affordable units, and long waiting times for legal recourse through the Landlord and Tenant Board. Prior to the enactment of the new bylaw, landlords could issue an N13 notice with minimal proof, giving tenants 60 days to vacate the property or contest the eviction. Tenants are often forced into these situations without legal support or knowledge of their rights. For years, tenants have voiced frustration over unfair renovictions that appeared to be little more than a strategy to reset rental prices. The new bylaw is designed to close the possibilities of such occurrences.
Requirements of the Rental Renovation Licence Bylaw
The New Rental Renovation Licence Bylaw creates a more strict and transparent process for landlords seeking to evict tenants in order to carry out substantial renovations. Here’s what it mandates:
1. Licensing Requirement
Landlords must obtain a Rental Renovation Licence from the City of Toronto before they can proceed with an eviction related to renovation work. The application along with a $700 administrative fee must be submitted within seven days of issuing an N13 notice to tenants. The N13 is a legal Landlord and Tenant Board notice to end a tenancy because the landlord wants to demolish, repair, or convert the rental unit.
2. Third-Party Verification
The landlord must include with their application a report from a qualified professional, such as a licensed architect (via the Ontario Association of Architects) or a professional engineer (via Professional Engineers Ontario), stating that the renovations truly require vacant possession of the unit.
This step ensures that cosmetic or minor upgrades, which can often be completed with tenants in place, are not used as false justification for eviction.
3. Tenant Compensation & Protection
If the renovations are deemed to require the tenant’s departure, the tenants could either choose to return or not return to the rental unit. In both cases, the landlord is responsible for accommodating the tenant.
If the tenant wishes to return, the landlord is either responsible for:
If the tenant chooses not to return, the landlord is responsible for:
In addition to these requirements, landlords are required to pay a one-time moving allowance of $1,500 for a studio or one-bedroom unit, or $2,500 for a two-bedroom or larger unit.
4. City Oversight and Enforcement
The City of Toronto’s building department will review the submitted renovation plans and permits. Failure to comply with the bylaw can result in fines of up to $100,000 and other enforcement actions.
The city also maintains a public online registry that allows tenants to check whether their landlord has obtained the necessary renovation licence. The whole process of obtaining a rental renovation licence becomes much more transparent to all the involved parties.
What Tenants Should Know
The new bylaw represents an important shift in power toward tenants. If you receive an N13 notice, these are some steps that you can take.
What Landlords Need to Do
For landlords, the new bylaw means increased obligations and more clear guidance on how to carry out necessary renovations within the law. These are the steps that landlords would have to take.
By following these steps, landlords can avoid fines, reputational damage, and legal disputes, while they join in the initiative of helping to preserve Toronto’s essential rental housing supply.
Exemptions from the Rental Renovation Licence Bylaw
The Rental Renovation Licence Bylaw applies to all residential rental units in the City of Toronto, regardless of building type or the number of units within a property. A rental unit is defined broadly as any living space rented for residential purposes. However, certain types of housing are exempt from this bylaw. These exemptions include: government-licensed or approved residences, city-operated shelters, and buildings managed by Toronto Community Housing. Additionally, student housing provided by post-secondary institutions or non-profit student co-operatives, as well as temporary accommodations like hotels and motels, are not covered. Other exclusions include buildings governed by the Housing Services Act, 2011 and designated social or affordable housing units subject to agreements with the City of Toronto. These exemptions recognize the unique governance structures of certain housing providers, while ensuring that the bylaw remains focused on the private rental market where renovictions occur more commonly.
Conclusion: A Vital Step Towards Housing Stability
The Rental Renovation Licence Bylaw marks a vital step forward in Toronto’s ongoing effort to protect tenants and preserve affordable rental housing. Concerns over renovictions, where tenants are displaced under the pretense of renovations so landlords can significantly raise rents, has been a longstanding concern in the city. These concerns have finally been addressed through this enforceable legal framework. The new bylaw targets the segments of the rental market where low-income and marginalized tenants are most vulnerable to exploitation.
Importantly, the bylaw balances accountability and fairness. For landlords undertaking legitimate renovations, it sets out a clear and transparent process to follow. For tenants, it offers critical protections, such as moving allowances and rent-gap compensation to verify compliance. Landlords may face meaningful consequences for non-compliance, including fines of up to $100,000.
At Bradshaw & Mancherjee, our Toronto real estate lawyers are here to help landlords navigate this new legal landscape and support tenants in understanding their rights. Whether you are managing a renovation, facing an N13 eviction notice, or seeking legal advice on compliance, our team is committed to providing you with the guidance and advocacy you need in this new era of housing regulation in Toronto.
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