London’s Response to Renovictions: Rental Unit Repair License

Author
Jasmine Jasani
| Published at
November 25, 2024
| Updated on
November 25, 2024
Author
Jasmine Jasani
Published at
November 25, 2024
Updated on
November 25, 2024
London, Ontario introduces new Rental Unit Repair License to combat renovictions, effective March 2025.

KEY TAKEAWAYS

Housing Crisis: Stagnant wages and rising housing costs in London have created conditions where renters are increasingly vulnerable to renovictions.

London’s Renoviction Problem: A 2021 report found housing affordability challenges in London, exacerbated by renovictions, with over 153 cases filed between 2017 and 2021.

Rental Unit Repair License: London’s new Rental Unit Repair License, effective March 2025, strengthens tenant protections against unfair evictions for renovations.

In London, Ontario, housing affordability challenges are driving prolonged rental market participation, leaving tenants vulnerable to renovictions—illegitimate evictions masked as necessary renovations. 

With over 153 reported cases of renovictions from 2017 to 2021, the City of London has taken proactive steps by introducing a Rental Unit Repair License to safeguard tenants and close gaps in existing provincial protections.

What is renoviction? 

Renovictions have increased over the past few years. Renoviction occurs when a landlord illegitimately evicts a tenant by claiming that the property needs to be vacant for extensive renovations. It is an eviction done in bad-faith. 

While the province’s Residential Tenancies Act (RTA) provides a legal framework for such evictions, enforcement challenges have led cities like Hamilton, London, and Toronto to introduce or explore renoviction-specific by-laws. 

How can a landlord evict a tenant for renovation?

Under Ontario’s Residential Tenancies Act (RTA), landlords may evict tenants if the unit needs major repairs or renovations that cannot be completed while it is occupied. Read How Ontatrio’s Residential Tenancies Act Prevents Renovictions to learn more about this.

To initiate an eviction process, landlords must issue a Form N13: Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it, or Convert it to Another Use.

The landlord must then follow the rules set by the Landlord and Tenant Board (LTB) to ensure compliance with the law. This legal framework provides tenants with safeguards, such as adequate notice and the right to challenge the eviction if it appears to be in bad faith.

Housing Affordability in London

A 2021 analysis of London’s local housing market carried out by the City found that stagnant wages and increasing cost of houses prevented renters from transitioning to homeownership. As a result, they remain in the rental market longer. Demand grew faster than supply, making rentals less affordable.

A graph showing the how many hours a Londoner has to work to be able to afford a 2 bedroom apartment in London

At the same time, according to renoviction statistics from the tenant advocacy group ACORN, London had 153 renoviction filings with the Landlord and Tenant Board (LTB) from 2017 to 2021, ranking it as the fifth highest in Ontario.

London Approves Renoviction Bylaw

Following suit from New Westminster, Hamilton, and Burnaby, the City of London in March 2024 presented a 25-page Initial Research Report on Renovictions to City Council. 

[ Read About New Westminster's Renoviction Bylaw]

The City of London’s renovictions report explains that:

“...we are witnessing several forms of structural displacement in London, including but not limited to formal and informal, real and ‘bad faith’ evictions based on renovations but driven by the potential for increased profit.
While this is not the typical behaviour for most London landlords, the renoviction phenomenon does draw attention to loopholes and shortfalls within the existing Provincial system and provides evidence as to why the City of London may consider exploring a renoviction and relocation style by-law similar to Hamilton’s proposal.

London’s Rental Unit Repair License 

Following this, on 24 September 2024, London City Council approved a Rental Unit Repair License to protect tenants and prevent unfair renovictions. This license is set to take effect in March 2025. 

The license is added as an additional schedule to the City’s existing Business Licensing Bylaw.  This table below summarizes the protections against renovictions in Schedule 23, Rental Unit License.

Rental Unit Repair License Information

Key Requirements for Landlords

Requirement Timeline Details
Initial Notice Day 0 Must provide N13 Notice with Tenant Information Package
License Application Within 7 days Must apply for Rental Unit Repair License after giving N13 Notice
License Cost/td> $600 License valid for 180 days; renewal possible if needed
Building Requirements Before application Must obtain building permit and professional certification
Public Notice Throughout process Must post notice if building has multiple units
License Display During renovation Must display license on unit door or building exterior

Important Tenant Rights

Right Description
Information Package Must receive Tenant Information Package with N13 Notice
First Refusal Right to return to unit after renovations
Verification Renovations must be certified as requiring vacant possession
Unit Specificity License applies only to specific unit stated

Penalties for Non-Compliance

Violation Penalty
Initial Violation $250 - $2,500
Repeated Offenses Escalating penalties
Multiple Violations Separate penalties per violation

Conclusion 

London’s rising renovictions reflect broader housing affordability issues, with demand for rentals outpacing supply. The introduction of the Rental Unit Repair License, set to take effect in March 2025, aims to address these issues by providing additional protections for tenants and filling gaps in the existing provincial framework.

FAQ

Styled FAQ Dropdown Menu
01.What is a renoviction?

A renoviction occurs when a landlord evicts tenants under the claim of performing major renovations. While legitimate renovations requiring vacant possession are allowed under Ontario's Residential Tenancies Act (RTA), renovictions specifically refer to cases where the process is abused to displace tenants and raise rents.

02. How does London’s Rental Unit Repair License work?

Effective March 2025, the Rental Unit Repair License is part of London’s Business Licensing Bylaw. It requires landlords to meet specific conditions before evicting tenants for renovations, preventing bad-faith evictions and ensuring repairs are genuinely necessary.

03. Why did London introduce a Rental Unit Repair License?

London introduced the license in response to gaps in Ontario’s Residential Tenancies Act, which has limited enforcement mechanisms. The city aims to address rising renovictions and protect tenants from displacement in a high-demand rental market.

04. How does London’s housing market affect renovictions?

London’s 2021 housing report revealed stagnant wages and rising housing costs, preventing many renters from transitioning to homeownership. This high demand for rentals has led to an increase in renovictions as landlords seek to maximize profits.

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Jasmine Jasani
Growth Advisor

About the Author

Jasmine Jasani is the Growth Advisor at Openroom, specializing in strategic planning and customer retention. With a background in psychology, law, digital tools, and communication, she effectively leverages technology to drive organizational success.

As the Executive Director of Brockville’s Business Improvement Area (BIA), she spearheaded the city’s first digital gift card program and secured federal funding to support digital transformation initiatives for SMEs. Previously, at the United Nations High Commissioner for Refugees (UNHCR), Jasmine played a key role in implementing digital solutions to overcome COVID-19 challenges and streamlined intra-organizational case processing modalities.

Jasmine's belief in the power of knowledge was shaped by her personal experiences as a renter. While working as a legal assistant earlier in her career, she encountered issues with her landlord. Her boss, a partner at the firm, quickly assessed her situation and cited the relevant law, empowering her to assert her rights. This experience reinforced Jasmine's commitment to using knowledge to foster healthy and informed communities.

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