Starting July 31, 2025, a new bylaw will take effect in Toronto aimed at regulating so-called “renovictions”—evictions carried out under the guise of renovations. The city’s Rental Renovation License Bylaw introduces clear procedures and requirements to protect tenants from displacement while still allowing legitimate renovations to move forward. Here's an overview of what the bylaw includes and how it affects both landlords and tenants.
The Reason Behind the Bylaw
Toronto has seen a rise in cases where tenants are asked to vacate their units for extensive renovations, only for the properties to be re-rented at significantly higher rates. This practice, often referred to as “renoviction,” undermines tenant stability and circumvents rent control. In response, the City of Toronto has followed the lead of other Ontario cities like Hamilton and London by introducing a municipal framework that works alongside the provincial Residential Tenancies Act (RTA).
Key Requirements for Landlords
Under the new rules, landlords who plan to evict a tenant to conduct major renovations must apply for a Rental Renovation License within seven days of issuing an N13 eviction notice. The license application costs $700 and must include:
Valid building permits
A report from a qualified professional (such as a licensed architect or engineer) confirming the need for the unit to be vacant
This is a substantial shift. While some renovations clearly require vacant possession—such as removing structural walls or adding extensions—the requirement for a professional opinion introduces new complexity and potential costs.
Financial Obligations
In addition to the license and permitting fees, landlords must also compensate tenants. A one-time moving payment is required: $1,500 for studio or one-bedroom units and $2,500 for units with two or more bedrooms. This applies regardless of whether the tenant plans to return after renovations.
For tenants who do plan to return, landlords must either provide comparable temporary accommodations or cover rent gap payments. These payments are based on the difference between the tenant’s current rent and average market rent as calculated by the Canada Mortgage and Housing Corporation (CMHC). If a tenant chooses not to return, landlords are still required to provide three months of rent gap compensation.
Transparency and Enforcement
To ensure transparency, the City will maintain a public registry where tenants can verify if their landlord is licensed and track the status of renovation permits. Enforcement will begin with an “education-first” approach, but non-compliance can lead to fines of up to $100,000.
Tenants can report violations by calling 311, and the City may issue inspection orders, compliance directives, or charges.
Implementation Challenges
While the policy aims to strengthen tenant protections, it’s not without logistical concerns. For example, landlords may face difficulty securing a qualified professional’s report and submitting a full application within the seven-day window. There’s also uncertainty around how quickly the City will process applications, given that building permit approvals can take weeks or even months.
Moreover, the CMHC rent averages used to determine compensation may exceed current market rates, raising questions about fairness and feasibility.
A Step Toward Tenant Protection
Despite these challenges, many tenant advocates see the bylaw as a long-awaited measure to curb unfair evictions and promote housing stability. It reflects a growing recognition that municipalities can play a meaningful role in tenant protection, even within a largely provincial legal framework.
Whether you're a landlord navigating these new requirements or a tenant seeking to understand your rights, it’s essential to stay informed. The full details, forms, and resources can be found on the City of Toronto’s website by searching for “Rental Renovation License Bylaw.”
This bylaw marks a significant development in Toronto’s approach to rental housing and will likely influence how renovations and evictions are handled for years to come.
The Reason Behind the Bylaw
Toronto has seen a rise in cases where tenants are asked to vacate their units for extensive renovations, only for the properties to be re-rented at significantly higher rates. This practice, often referred to as “renoviction,” undermines tenant stability and circumvents rent control. In response, the City of Toronto has followed the lead of other Ontario cities like Hamilton and London by introducing a municipal framework that works alongside the provincial Residential Tenancies Act (RTA).
Key Requirements for Landlords
Under the new rules, landlords who plan to evict a tenant to conduct major renovations must apply for a Rental Renovation License within seven days of issuing an N13 eviction notice. The license application costs $700 and must include:
Valid building permits
A report from a qualified professional (such as a licensed architect or engineer) confirming the need for the unit to be vacant
This is a substantial shift. While some renovations clearly require vacant possession—such as removing structural walls or adding extensions—the requirement for a professional opinion introduces new complexity and potential costs.
Financial Obligations
In addition to the license and permitting fees, landlords must also compensate tenants. A one-time moving payment is required: $1,500 for studio or one-bedroom units and $2,500 for units with two or more bedrooms. This applies regardless of whether the tenant plans to return after renovations.
For tenants who do plan to return, landlords must either provide comparable temporary accommodations or cover rent gap payments. These payments are based on the difference between the tenant’s current rent and average market rent as calculated by the Canada Mortgage and Housing Corporation (CMHC). If a tenant chooses not to return, landlords are still required to provide three months of rent gap compensation.
Transparency and Enforcement
To ensure transparency, the City will maintain a public registry where tenants can verify if their landlord is licensed and track the status of renovation permits. Enforcement will begin with an “education-first” approach, but non-compliance can lead to fines of up to $100,000.
Tenants can report violations by calling 311, and the City may issue inspection orders, compliance directives, or charges.
Implementation Challenges
While the policy aims to strengthen tenant protections, it’s not without logistical concerns. For example, landlords may face difficulty securing a qualified professional’s report and submitting a full application within the seven-day window. There’s also uncertainty around how quickly the City will process applications, given that building permit approvals can take weeks or even months.
Moreover, the CMHC rent averages used to determine compensation may exceed current market rates, raising questions about fairness and feasibility.
A Step Toward Tenant Protection
Despite these challenges, many tenant advocates see the bylaw as a long-awaited measure to curb unfair evictions and promote housing stability. It reflects a growing recognition that municipalities can play a meaningful role in tenant protection, even within a largely provincial legal framework.
Whether you're a landlord navigating these new requirements or a tenant seeking to understand your rights, it’s essential to stay informed. The full details, forms, and resources can be found on the City of Toronto’s website by searching for “Rental Renovation License Bylaw.”
This bylaw marks a significant development in Toronto’s approach to rental housing and will likely influence how renovations and evictions are handled for years to come.
