RSS

Landlords in Toronto Face New Fines Under Renoviction Rules Starting July 2025

Landlords in Toronto Face New Fines Under Renoviction Rules Starting July 2025

🏙️ Toronto’s New Renoviction Bylaw Takes Effect July 2025: What Landlords and Tenants Need to Know

As of July 31, 2025, the City of Toronto will implement a new Rental Renovation Licence Bylaw—a move designed to crack down on so-called renovictions, where tenants are evicted under the pretense of major renovations, only for the units to be re-rented at much higher prices.

This bylaw introduces licensing, documentation, and compensation requirements for landlords who plan to renovate occupied rental units. Here’s everything you need to know.


🧾 What the Bylaw Requires

To legally evict a tenant for renovations, landlords must now:

  • Apply for a Rental Renovation Licence
    This must be submitted within 7 days of issuing an N13 eviction notice, and includes:

    • A $700 application fee per unit

    • Approved building permits

    • A qualified report (engineer or architect) confirming vacant possession is required

    • A posted Tenant Information Notice in a visible area of the building

  • Provide Documentation
    Landlords must demonstrate that the work cannot be safely completed while the unit is occupied.


🏠 New Tenant Protections

Under the new rules, tenants facing renovation-related eviction are entitled to:

  • Alternative Comparable Housing
    At similar rent while the renovations are underway.

  • Rent Gap Payments
    Monthly compensation equal to the difference between their current rent and the average market rent.

  • Moving Allowances

    • $1,500 for studios or 1-bedroom units

    • $2,500 for 2-bedroom+ units

  • Severance Option
    Tenants who choose not to return post-renovation must be paid a lump sum equal to three months of rent-gap compensation.


⚖️ Enforcement and Penalties

The City will actively monitor and enforce the bylaw. Non-compliant landlords may face:

  • Fines up to $100,000 for evicting without performing legitimate renovations

  • Daily fines of up to $10,000

  • Penalties tied to the financial benefit gained from non-compliance


📢 City’s Public Awareness Campaign

To educate the public, Toronto has launched an outreach campaign using messaging like:

“New hardwood shouldn’t make a renter’s life harder.”

This initiative aims to raise awareness among tenants about their rights and help landlords understand their new obligations under the bylaw.


💬 Why This Matters

Toronto continues to face a housing affordability crisis, and renovictions have become a major concern. By implementing this bylaw, the City aims to protect vulnerable tenants and ensure rental units remain accessible and affordable.

Landlords must now balance property upgrades with increased transparency and responsibility. For tenants, these rules could offer much-needed stability in an unpredictable market.


🔗 Source Links for Further Reading

 

 




🏡 Ready to Start Your Real Estate Journey?

Whether you're planning to buy, sell, or invest, I’m here to guide you every step of the way — surprises and all.

📈 Looking to capitalize on today’s changing market?
Explore a wide range of specialized listings with access to powerful tools and search portals tailored to your needs:


📩 Need help navigating your options?
Reach out for expert advice and market insights:

Sami Chowdhury

BROKER
📧 Email: samichy@torontobase.com
🌐 Web: www.torontobased.com | www.torontobase.ca

Let’s make your next move a smart one!


 

This website may only be used by consumers that have a bona fide interest in the purchase, sale, or lease of real estate of the type being offered via the website. The data relating to real estate on this website comes in part from the MLS® Reciprocity program of the PropTx MLS®. The data is deemed reliable but is not guaranteed to be accurate.