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Key Takeaways
- Renovictions are when a landlord evicts a tenant to have renovations performed and then re-leases the unit with higher rent.
- The Toronto Rental Renoviction Licence Bylaw provides tenants with added protection against Toronto renovictions.
- The Toronto Rental Renoviction Licence Bylaw will take effective on July 31st 2025.
Under the new bylaw, landlords will have to obtain approvals and provide official documentation that proves the legitimacy of the renovation and need for vacancy.
- Landlords who don’t comply with the Toronto Rental Renoviction Licence Bylaw or existing LTB rules and requirements may face $50,000 to $250,000 fines.
Big Changes for Landlords Starting July 31, 2025
The Toronto City Council adopted a new Rental Renovation Licence Bylaw that’s set to take effect on July 31st, 2025. The purpose of this bylaw is to crack down on “renovictions” in Toronto. It applies to any rental unit renovation that would require tenants to vacate the premises. The primary goal of the bylaw is to safeguard renters from bad-faith evictions. While this bylaw offers added protection for tenants, it may have a growing impact on smaller landlord such as those renting out basement apartments. Learn more about renovictions and the Toronto Rental Renoviction Licence Bylaw below.
*The following blog is for informational purposes only. For legal assistance or advice, contact a licensed Residential Tenancies Lawyer.
What Is a Renoviction?
Toronto renovictions are when landlords evict tenants under the claim of performing renovations, but instead raise the rent of the unit without making improvements or repairs. The rise of renovictions in Toronto has led to the successful adoption of the Toronto Rental Renoviction Licence Bylaw.
Landlords will need to follow proper procedures and obtain required approvals in order to evict tenants for legitimate renovations.
How Can a Landlord Evict a Tenant for Renovation?
The Ontario Residential Tenancies Act (RTA) states that landlords have the right to evict tenants for major repairs or renovations which cannot be completed while the unit is occupied. They must first issue an N13 Notice to the tenant stating the reason for the eviction is to demolish, repair, or convert the unit for another use.
The landlord has to follow the Landlord and Tenant Board (LTB) rules. This includes acquiring all the necessary permits before issuing the N13 and providing a minimum of 120 days’ notice. The LTB states that the tenant has the right to challenge the eviction if it’s suspected in bad-faith. They can also exercise their right of first refusal, which allows the tenant to re-enter the unit following the renovations without having to pay higher rent.
How To Properly File an N13 Notice
In order to file a Form N13, landlords must follow proper procedures and adhere to the rules set by the LTB. For a full list of the Form N13 filing instructions, visit the Tribunals Ontario website. The following is an overview of when to use and how to file a Form N13:
- You intend to convert the rental unit or complex into a non-residential space
- You plan on demolishing your rental unit or complex
- You’re performing major repairs or renovations that require a vacant unit
How To Deliver an N13 Notice
Legal delivery methods of an N13 Notice include:
- Handing the notice to the tenant or adult within the unit
- Putting the notice in the tenant’s mailbox
- Sliding the notice under the rental unit door or through a mail slot
- Sending the notice by mail or courier
- Faxing the notice to the tenant’s business or home fax machine
Form N13 Rules, Requirements, & Exceptions
Before filing a Form N13, it’s important to understand the associated rules, requirements, and compensation guidelines. These include:
Landlords will need to follow proper procedures and obtain required approvals in order to evict tenants for legitimate renovations.
What Tenants Need to Know
If you’re a tenant that’s been given an N13 Notice, or are concerned about the true intentions behind your tenancy termination notice, it’s vital to know your rights. The following outlines everything tenants need to know about renovation evictions:
Understanding a Right of First Refusal
When landlords plan to renovate or repair a rental unit, the tenant has the right of first refusal. This means the tenant can move back into the unit following the improvements. When exercising the right of first refusal, tenants still maintain the right to compensation. Additionally, landlords cannot raise the rent following the renovations. Rules and requirements associated with the right of first refusal include:
- Tenants must give written notice of their desire to re-enter the rental following renovations/repairs.
- Tenants need to provide the landlord with their temporary address in writing. Any address changes throughout the renovation period must also be given in writing.
- If the landlord fails to uphold the rules and requirements to the right of first refusal, tenants can file a claim with the LTB for compensation. Then tenant has up to two years to file this claim.
Compensation
Compensation varies depending on the type of rental and number of units on one residential property. For example, one basement apartment versus a 10-unit complex. The following chart provides a breakdown of tenant compensation rights following a renovation eviction:
| Eviction Specifications | 5+ Rental Units in Complex | Under 5 Rental Units in Complex |
|---|
| Demolition | Provides compensation equal to 3 months’ rent OR finds you another acceptable unit | Provides compensation equal to 1 months’ rent OR finds you another acceptable unit |
| Repairs/Renovation (Doesn’t Move Back) | Provides compensation equal to 3 months’ rent OR finds you another acceptable unit | Provides compensation equal to 1 months’ rent OR finds you another acceptable unit |
| Repairs/Renovations (Does Move Back) | Provides compensation equal to 3 months’ rent OR rent for each month of the renovation (whichever is less) | Provides compensation equal to 1 months’ rent OR rent for each month of the renovation (whichever is less) |
| Conversion | Provides compensation equal to 3 months’ rent OR finds you another acceptable unit | Provides compensation equal to 1 months’ rent OR finds you another acceptable unit |
Disputing a Bad-Faith Eviction
If you need to file a complaint regarding a bad-faith eviction, you can file a
Form T5
with the LTB. For additional dispute resources and LTB forms, visit the
Tribunal Ontario forms, filing, and fees webpage.
Reducing Bad-Faith Evictions
Renovictions are a way to raise rent more than the LTB’s allowed yearly percentage. For example, if a tenant pays $2,000 a month and the allowed percentage increase in 2.5%, then rent can be raised to $2,050 a month. However, if the tenant is evicted, the landlord could increase the rent beyond 2.5%. As a result, rent prices continue to rise and affordable housing is becoming harder and harder to find.
Improving Tenant Rights
The Toronto renoviction bylaw guarantees that tenants can exercise their right of first refusal without the threat of illegal rent increases or denied access. Alternatively, if the tenant doesn’t wish to return to the unit, they have the right to financial compensation.
Rental Renovation License Requirements
The following outlines the requirements to obtain a rental renovation license, according to the Toronto Rental Renoviction Licence Bylaw:
- Building Permits: Landlords must apply for and acquire all the necessary permits for their planned renovation. This may include building permits, plumbing permits, and/or electrical permits.
- Official Documentation: An architect or engineer with a license from the Ontario Association of Architects (OAA) or Professional Engineers of Ontario (PEO) must confirm that vacancy is required for the renovations.
- License Fee: Landlords are required to pay a $700 license fee for each unit they plan on renovating. This fee is waived for Multi-Tenant Housing Operators.
- Tenant Notification: A Tenant Information Notice (TIN) needs to be posted on the door of the affected rental(s) within five days. It must remain there until the license is approved or denied.
How This Affects Basement Apartment Renovations
If you plan on renovating an occupied basement apartment, you’ll need to obtain permit approvals and confirmation of required vacancy as well as pay a $700 unit fee to evict the tenant. This applies to renovations such as underpinning, layout changes, and adding a separate entrance. This can alter your renovation budget as it adds to the total cost of the renovation.
Additionally, renovation licenses are only valid for 12 months. If your renovation isn’t complete within that timeframe, you’ll need to apply for another license. The following is a list of the renovations that do and don’t require a renoviction license:
| Requires a License ✓ | Doesn’t Require a License ✗ |
|---|
- Basement underpinning & loweringFoundation repairsMajor electrical/plumbing system workLayout changesWater or fire damage repairs
| - Hardware repairs or replacementsCosmetic improvementsInstalling or replacing light fixturesAppliance repairsMinor HVAC, electrical, or plumbing repairs
|
Renovating Before You Rent: A Smarter Move in 2025
Save yourself time and money by planning and completing all your renovations before renting out your basement apartment, in-law suite, or accessory dwelling unit. Harmony Basements is among the best basement renovation companies in Toronto and the GTA. We’re fully licensed and have an in-depth understanding of the Toronto Rental Renoviction Licence Bylaw and Rental Renovation License requirements. We can help you design, plan, and build a rental-ready basement apartment from scratch.
Avoid Legal Trouble: Work With Contractors Who Understand the Rules
Avoid unnecessary legal action, fines, and eviction delays by partnering with the experienced professionals at Harmony Basements.
We work with licensed engineers and architects on every job and coordinate with city permit offices to make sure the permit approval process is by the book and runs smoothly. We guarantee no surprises or legal headaches.
Conclusion: Build Smart. Rent Smarter.
With new renoviction laws comes new renovation responsibilities. No one understands that better than Harmony Basements. We always design and build with long-term compliance in mind. Thinking of renovating your basement apartment before the 2025 changes hit? Let’s talk.
Contact us today for a free consultation and quote.
FAQs
What is a bad-faith eviction? Evictions done in bad-faith occur when a landlord is dishonest about the reason behind the eviction. For example, if a landlord claims they’re evicting a tenant because they’re moving into the space, but instead re-lists the unit at a higher rent.
What problems might landlords face because of the new rules? Here are a few potential problems landlords might face as a result of the new Toronto renovictions bylaw:
– Providing severance compensation equal to three months’ rent should the tenant choose not to return.
– Providing the tenant with $1,500 to $2,500 for moving expenses, regardless of if they return to the unit or not.
– Increased cost of renovations that must be performed for the safety of the tenants and landlord.
– Failure to address delinquent renters who refuse to pay rent or vacant the unit.
What other cities in Ontario have adopted renoviction bylaws? Cities that have adopted renoviction bylaws in addition to Toronto include Hamilton and London. Kitchener is another city that is working towards adopting renoviction bylaws.
What if a landlord doesn’t comply with the bylaws? Landlords who don’t comply with the existing and/or new renoviction bylaws can face fines between $50,000 and $250,000.
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https://harmonybasements.ca/renovictions-harmony-basements/
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