Understanding Toronto's New Tenant Eviction Bylaw

In a move to safeguard tenants from unjust evictions disguised as renovations ("renovictions"), Toronto has adopted a new bylaw inspired by the city of Hamilton's model. This significant change will require landlords seeking to renovate rental units to obtain a special renovation license, adding a layer of scrutiny to the eviction process.

What Landlords Need to Know

Under the new bylaw, landlords must now obtain a special renovation license before issuing an N13 notice, the formal notification of intent to renovate a unit. This license, which costs $715 per unit, must be secured within seven days of serving the N13 notice and is contingent upon providing detailed documentation.

Landlords are required to submit approved building permits and an engineer's report confirming the absolute necessity of tenant relocation for the renovations to proceed. Failure to comply with these regulations can result in hefty fines, reaching up to $10,000 for individuals and a staggering $50,000 for corporations.

Tenant Protections vs. Landlord Concerns

The bylaw seeks to address the misuse of N13 notices, which have seen a dramatic increase in recent years, raising concerns about their potential use to circumvent rent control and displace long-term tenants. Tenant advocates have long called for stronger protections, arguing that ‘renovictions’ often exploit loopholes in the system, leading to unjust evictions and exacerbating the city's affordable housing crisis.

While the bylaw is a victory for tenant rights, landlords are grappling with the increased bureaucracy, administrative burdens, and additional costs, hindering their ability to maintain and improve rental properties. Landlords are already required to provide tenants with 120 days' notice for renovations and offer the option to return to the unit once the work is complete. They must also provide compensation ranging from one month's rent to a year’s rent or arrange for alternative accommodation. Although the new bylaw aims to ensure that N13 notices are used only for legitimate renovations and not as a pretext for evictions, the new requirements add a layer of complexity to the renovation process, potentially delaying projects and increasing costs. 

Some landlords are also facing challenges such as tenants refusing to vacate or the ongoing backlog at the Landlord and Tenant Board, making it difficult to regain possession of their properties or address issues like unpaid rent. Both sides agree that the current system requires improvement.

The coming months will reveal how effectively these measures balance the rights and responsibilities of both parties, shaping the future of Toronto’s rental landscape.