News Release: April 22, 2025 - City of Toronto launches Rental Renovation Licence Bylaw public education campaign
There have been reports of a growing trend of renovictions in Toronto, where a landlord illegitimately evicts a tenant by alleging that vacant possession of a rental unit is needed to undertake renovations or repairs.
Renovictions can include refusing to allow a tenant who has exercised their right of first refusal to return post-renovation, illegally raising the rent on a returning tenant, or not undertaking major renovations after evicting renters. This results in the displacement of tenants, the permanent loss of affordable market rental housing and contributes to rising homelessness in Toronto.
On November 14, 2024, the City Council adopted the Rental Renovation Licence Bylaw to curb bad faith evictions and protect tenants from "renovictions." For more information, please refer to City of Toronto Bylaw 53-2025.
The bylaw will come into effect on July 31, 2025.
What does the Rental Renovation Bylaw Apply to?
All residential rental units in the City of Toronto are subject to this bylaw, regardless of the building type or number of units in the building. A rental unit is any living space that people rent to live in. However, it does not include the following types of places:
- Government-Approved Residences: Places licensed or approved by the Ontario or Canadian government.
- City-Operated Shelters: Shelters run by the City or its agencies that provide short-term emergency housing and services.
- Toronto Community Housing: Buildings owned or operated by the Toronto Community Housing Corporation.
- Student Housing: Housing provided by colleges or universities for their students.
- Co-operative Student Residences: Student housing owned or leased by non-profit organizations that operate on a co-operative basis.
- Hotels or Motels: Temporary accommodations like hotels or motels.
- Housing Services Act Buildings: Buildings covered by the Housing Services Act, 2011, or its regulations.
- Other Social or Affordable Housing: Social or affordable housing not covered by the Housing Services Act but subject to an agreement with the City, as determined by the Executive Director of the Housing Secretariat.
Requirements for Landlords
- Licence Requirement: Landlords must obtain a licence before starting renovations that require tenants to move out under the Provincial N13 process. This ensures that renovations are conducted responsibly and transparently.
- Tenant Notification: Landlords must notify tenants about the renovation plans, provide compensation or accommodation plans, and offer them the option to return to their rental units after the renovations are completed.
- Compensation: Landlords must provide temporary housing or rent-gap payments, moving allowances, and severance compensation if tenants choose not to return. This compensation aims to mitigate the impact of renovations on tenants and ensure they are fairly treated.
License Application Steps for Landlords
- Before Applying:
- Obtain Necessary Permits: Landlords must secure all required building permits and approvals for the renovation project.
- Confirm Vacant Possession: A qualified person must confirm that vacant possession of the rental unit is necessary for the renovations.
- Submit Application:
- Timeline: Landlords must submit their licence application within seven days of issuing the N13 notice to tenants.
- Required Documents: The application must include copies of the building permit, N13 notice, a $700 application fee (waived for Multi-Tenant Housing Operators), and a report from a qualified person confirming the need for vacant possession.
- Tenant Notification:
- Tenant Information Notice (TIN): Once the City receives a complete application, it will issue a TIN to the landlord within two business days. The landlord must post the TIN on the door of each affected rental unit within five days and ensure it remains posted until the City issues or refuses the licence.
- Proof of Posting: Landlords must submit a photograph of the posted TIN to the City within 14 days.
- Accommodation/Compensation Plan:
- Declaration Form: Landlords must submit a Declaration Form signed by both the tenant and the landlord indicating whether the tenant intends to return after the renovation.
- Tenant Accommodation Plan: If the tenant chooses to return, the landlord must provide temporary housing or rent-gap payments and a moving allowance.
- Tenant Compensation Plan: If the tenant chooses not to return, the landlord must provide severance compensation, and any additional compensation required under the Residential Tenancies Act (RTA).
- Licence Issuance:
- Approval: Once the City approves the documentation, the Rental Renovation Licence is issued, and renovations may begin.
- Posting: A copy of the licence must be posted on the rental unit’s door or another approved location on the property during renovations.
- Additional Documentation:
- Proof of Implementation: Landlords must submit proof that the agreed-upon Tenant Accommodation or Compensation Plan is being implemented, including documentation of payments or housing arrangements.
- After Renovations:
- Re-occupancy Notification: Landlords must notify tenants that the unit is ready for re-occupancy and allow them to move back into the unit at the same rent they paid before leaving.
How to Apply
Instructions for how to apply for a Rental Renovation Licence will be available after the bylaw comes into effect on July 31, 2025. This page will be updated with details and a link to the portal once available. Applicants will be required to submit all documents electronically.
For more information on landlord responsibilities and requirements throughout the renovation process, visit City website.
Enforcement and Compliance
- Monitoring: Toronto Building Inspectors will monitor compliance with the bylaw throughout the renovation process.
- Penalties: Fines for non-compliance include up to $1,000 for failure to submit a licence application within seven days of issuing an N13 notice, up to $10,000 per day for continuing offences, and up to $100,000 for evicting tenants without completing renovations or failing to follow the approved plan.
For a quick access to the Rental Renovation Licence Bylaw information, please see this Q&A section.
