Toronto’s rental market is no stranger to controversy, and few issues spark more debate than renovictions. For years, reports of landlords using “renovation” as a pretext to evict tenants paying below-market rent have dominated Toronto news headlines and even caught the attention of outlets like CP24. In response, City Council passed a sweeping new Renoviction By-Law in 2024, which officially comes into force on July 31, 2025.
This new framework doesn’t just tweak existing rules. It introduces a formal licensing system, strict tenant protections, and steep penalties for landlords who misstep. For property owners, it adds significant red tape to what used to be a relatively straightforward process under Ontario’s Residential Tenancies Act (RTA). For tenants, it provides a stronger safety net, at least on paper.
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What is a Renoviction?
A renoviction occurs when a landlord issues an eviction notice, typically through an N13 form, claiming that major renovations or repairs make it impossible for a tenant to remain in the unit. In Ontario, this is legal under the RTA, but only if the work is substantial enough to require vacant possession.
In practice, however, renovictions have often been abused. Some landlords remove long-term tenants under the guise of repairs, only to re-rent the unit at a much higher rate once the work is “complete.” The City’s by-law was designed to close these loopholes and force landlords to prove both the legitimacy of the work and their good-faith intention to let the tenant return at the same rent.
Why Toronto Passed the By-Law
Rising rents, low vacancy, and increasing reports of tenants being displaced for renovations they never return to sparked political action. City staff noted that between 2017 and 2023, N13 filings in Toronto rose sharply, while the rate of tenants returning post-renovation remained low.
The province’s RTA already covers eviction rules, but municipalities in Ontario can regulate “business licensing.” Toronto used this authority to create a framework requiring landlords to get a City permit before evicting for renovations. The goal: weed out bad-faith renovictions and create a paper trail for enforcement.
Key Changes Landlords Must Know
The new By-Law 42-2024 addresses a few key issues related to renovations in tenanted suites:
1. Licence Required
Landlords must apply for a Rental Renovation Licence within seven days of serving an N13 notice to a tenant. No work can begin until the licence is approved. The cost is $700 per rental unit.
2. Proof of Substantial Work
Cosmetic upgrades don’t count. A landlord must provide documentation — building permits, professional reports, or engineering statements — showing that the renovations are so extensive they require the tenant to leave.
3. Tenant Information Notice
Within days of filing the licence application, landlords must post an official Tenant Information Notice on the tenant’s door. This document, prepared by the City, explains the tenant’s rights and includes a link to the City’s Eviction Prevention Handbook. The landlord must also email a dated photo of the notice to the City to prove compliance.
4. Tenant Accommodation or Compensation Plan
If a tenant chooses to return, the landlord must create a detailed Tenant Accommodation Plan that covers temporary housing, moving expenses, and the right of return. If the tenant does not wish to return, the landlord must pay compensation that includes three months of rent gap payments plus moving expenses.
5. Right of Return
This rule, already in the RTA, is reinforced at the City level. Once renovations are complete, tenants must be allowed to move back in at their old rent (plus any lawful guideline increases).
A critical piece of the by-law is that it reinforces the tenant’s “right of return” under the RTA. This means that after the renovation is complete, the tenant must be given the opportunity to move back into the unit at the same rent they were paying before — plus any allowable annual guideline increases. This right must be communicated clearly and in writing at the outset, not treated as an afterthought.
Tenant Compensation
The tenant must now also be compensated for moving expenses and certain inconveniences as it relates to the renoviction:
- Moving expenses: $1,500 for studios or one-bedrooms, $2,500 for two-bedrooms or larger.
- Rent gap payments: The difference between the tenant’s current rent and the post-2015 CMHC average market rent for similar units in Toronto, paid monthly during the renovation.
- If the tenant does not return: A lump sum equal to three months of the rent gap, plus the moving allowance.
Tenant Communication Requirements
The by-law makes tenant communication a formal, regulated part of the eviction process. When serving the N13 notice, you must also give the tenant an information package that has been approved by the City. This document outlines the tenant’s rights, explains the nature and scope of the renovation, and details the expected timeline for completion. The City designed this requirement to ensure tenants are not left in the dark about their rights or about the landlord’s obligations.
The communication does not stop once the tenant has vacated. The by-law expects landlords to keep tenants informed during the renovation period, including progress updates and any changes to the timeline. If the work takes longer than anticipated, you will need to be able to show that you kept the tenant informed and that the delays were reasonable. The underlying principle here is transparency: the City wants tenants to be in a position to exercise their right of return, which means they need accurate, up-to-date information.
Requirements under the RTA
It’s important to understand that the Renoviction By-Law does not replace or exempt landlords from the existing N13 process under Ontario’s Residential Tenancies Act (RTA). Those provincial requirements (including proper notice, compensation, and the right of first refusal for tenants) still apply in full. The new by-law simply stacks an additional municipal permit process on top of them.
That means landlords must now navigate two separate layers of regulation: the provincial N13 rules and the City’s permit regime, each with its own timelines, forms, and compliance hurdles. Far from streamlining the process, the by-law compounds it, creating a situation where even landlords acting in complete good faith face double the red tape before a single renovation can begin.
Timelines & Proof Obligations
Under the new framework, the burden of proof rests firmly with the landlord at every stage. Before the eviction, you must present detailed evidence showing that the work requires vacancy in your application. This evidence could include engineering reports, photographs, or detailed construction schedules. The fee to apply for a renoviction license and have the file reviewed by city staff is $700 per unit.
During the renovation, you should be keeping a meticulous record — dated photographs, contractor invoices, inspection reports, and progress logs, so that you can prove the work is proceeding as stated.
After the renovation is complete, you must provide the City with proof that the work was carried out in accordance with your permit application. This is not just a formality; it is a compliance checkpoint that can affect your ability to rent the unit to anyone other than the original tenant. The right of return also has procedural requirements — you must give the tenant at least 60 days’ written notice before the unit will be ready for re-occupancy. If you cannot prove that you met these requirements, you could be found in violation of both the by-law and the RTA.
Penalties for Non-Compliance
The penalties for violating the Renoviction By-Law are steep. An individual landlord can face fines of up to $50,000 per offence, while corporations can be fined up to $100,000 per offence. On top of that, the City can levy daily fines for ongoing violations. These fines are in addition to any remedies or penalties that may be imposed under the Residential Tenancies Act.
Non-compliance can take many forms. Evicting a tenant without having obtained the proper City permit is an obvious violation, but so is providing false or misleading information in your permit application. Failing to complete the renovations in the time and manner approved by the City, or neglecting to offer the tenant their right of return, can also lead to charges. In the most serious cases, the City can prosecute offenders in provincial court, which can add legal costs and reputational damage to the financial penalties.
Implications for Landlords & the Rental Market
For landlords, this by-law changes the calculus of property management in Toronto. You must now build the City’s permit process into your renovation timeline, which could mean several additional weeks or months before you can even serve an N13 notice. This delay can increase carrying costs, especially if you have already secured financing or contractors who are ready to start work.
The administrative burden is also heavier. You will need to maintain detailed records not just for your own purposes, but to satisfy City inspections and any tenant challenges. The risk of penalties — both financial and procedural — is much higher than before. For some landlords, this may mean rethinking the scale or timing of renovation projects, or shifting toward renovations that can be completed with tenants in place.
From a market perspective, the by-law could slow the turnover of older, rent-controlled units. This may have the effect of stabilizing rents in some parts of the city, but it could also alter property valuations. Investors who previously saw “renovate and increase rent” as a straightforward strategy will now face significantly more regulatory friction. As a result, income properties with long-term tenants may trade at different cap rates, and buyers may be more cautious about underwriting aggressive rent growth based on tenant turnover.
Wrapping Up: A Shifting Landscape
Toronto’s Renoviction By-Law is a stark example of City Hall inserting itself into an area already governed by provincial law — and doing so with a heavy hand. Instead of targeting the small number of truly bad-faith landlords who misuse the N13 process, the City has created a blanket permitting regime that treats every landlord as a potential offender.
What was once a straightforward, province-regulated process under the Residential Tenancies Act is now tangled in an extra layer of municipal bureaucracy. Landlords who follow the law to the letter must now endure delays, additional costs, and endless paperwork just to perform legitimate, necessary renovations. The message is clear: the City doesn’t trust you, and they will make you prove your intentions at every step.
This is not tenant protection — it’s political theatre dressed up as policy. And while it will undoubtedly make life harder for unscrupulous operators, it will also punish good landlords, slow the renewal of the city’s aging rental stock, and ultimately hurt the very tenants it claims to protect. Toronto needed smarter enforcement. What it got was another permit, another line at City Hall, and another reason for responsible landlords to think twice before investing here.