What Are Renovictions and How Do They Affect Tenants in Canada?

In recent years, a new term has entered the Canadian housing lexicon: "renoviction." This portmanteau of "renovation" and "eviction" refers to the practice where landlords evict tenants because extensive renovations are needed on the property and the tenant needs to be out in order to complete them. 

The underlying assumption is that, in reality, these renovations are not that extensive as the landlord says it is. Once the tenant is evicted, the landlord can bypass rent control regulations and increase the rent significantly to match the market rate and find a higher-paying tenant. 

This article explores the origins of renoviction laws in B.C., their recent expansion into Ontario, and how cities like Hamilton, London, and Toronto are addressing this issue.

The Origins of Renoviction Laws in British Columbia

The first successful implementation of a renoviction by-law was in New Westminster, B.C. The city amended their existing by-law to address renovictions. This by-law is no longer in operation since the B.C. Residential Tenancy Act was amended to provide further protection for tenants against renovictions. 

New Westminster, B.C.

In 2016, the City of New Westminster staff became aware of a few evictions occurring in buildings undergoing renovations. This prompted them to create a Renovictions Action Plan to address the issue before it escalated. 

Under this plan, the city implemented various initiatives to support tenants facing renovictions, including providing updated information on tenants' rights, distributing a renovictions fact sheet, and offering the Tenant Survival Guide. They assisted tenants in checking landlords' permits, issue stop-work orders when necessary, and responded to inquiries about potential evictions. 

However, these efforts did little to curb renovictions, which were still on the rise. 

What was New Westminister's response to curb renovictions?

In June 2019, New Westminster amended its Business Regulations and Licensing Bylaw  to include Schedule 6. This addition was implemented to discourage renovictions by requiring landlords to provide temporary housing for displaced tenants and allow them to return to their units at the same rent after renovations. The city also introduced fines to enforce these regulations. 

Below is the summary of Schedule 6:

Unsafe Dwelling Units:

• A dwelling unit that is deemed unsafe due to damage from natural disasters, fire, water, smoke, insect infestations, or structural failure.
• A written report from an architect, engineer, or relevant authority must confirm the damage

Restrictions on Evictions for Renovations or Repairs:

• Owners cannot require tenants to vacate for renovations or repairs unless:some text
  • All necessary permits (e.g., building, plumbing, development) are obtained.
  • The tenant is either:some text
    • Offered a new tenancy agreement for a comparable or better unit, or
    • Provided temporary accommodation with a plan for returning them to their original unit.

Comparable Units:

• A comparable unit must:some text
  • Be in the same neighborhood and owned by the same landlord.
  • Have the same or more bedrooms.
  • Meet maintenance standards as per the Residential Tenancy Act and the bylaw.
  • Have rent equal to or less than the original unit’s rent.
• The new agreement can be permanent or temporary, allowing the tenant to return to their original unit after renovations.

Rent Increase Restrictions:

• Rent increases after renovations are not allowed unless approved as an "additional rent increase" under the Residential Tenancy Act.

These cumulative actions caused a significant decrease in renovictions. A report by the Toronto Star in 2021 stated that “According to city statistics, renovictions went from a combined 333 households between 2016 and 2018 to zero since 2019, when the bylaw came into force.”

In 2021, City Council of New Westminster initiated the process of repealing Part 6 of the Business Regulations and Licensing (Rental Units) Bylaw. Following amendments to the Residential Tenancy Act in July 2021, which now cover similar areas, Part 6 of the bylaw was no longer functional, prompting the repeal.

Integration into B.C Residential Tenancy Act

In November 2021, the British Columbia Residential Tenancy Act (RTA) was amended to address the growing concerns surrounding renovictions. The integration of renoviction regulations aimed to provide greater protections for renters by establishing clearer rules that landlords must follow when issuing eviction notices for renovations. This legislative change required landlords to provide tenants with detailed information about the nature and duration of the proposed work, as well as to demonstrate a genuine need for vacant possession. 

Here is a summary of the amendments to the Act:

Expansion of Renoviction By-Laws to Ontario

The growing crisis of housing affordability in Ontario has prompted several municipalities to introduce renoviction by-laws, modeled after successful legislation in British Columbia. Among the most notable examples are Hamilton, Toronto, and London. Ottawa and St Catherines are as well on their way to forming municipal legislation to address renovictions in their jurisdictions.

Hamilton

Hamilton’s renoviction bylaw is inspired by the effective legislation from New Westminster, B.C. 

Why did Hamilton introduce a renovictions bylaw?

Essentially, the City of Hamilton was losing more affordable housing than it could provide. Between 2017-2022, Hamilton observed a 983% increase in renoviction notices. Between 2016 and 2021, the city lost 5,500 affordable rental units, while only 500 new units were added through federal-provincial funding, according to a 2023 Canadian Housing Evidence  Collaborative research study. 

Hamilton introduces Ontario’s first renoviction by-law

In March 2023, the city of Hamilton introduced their very first renoviction by-law. The by-law was passed on 10 April 2024 and will come into effect in January 2025, allowing for the City to develop the capacity to enforce the by-law. 

In a nutshell, the by-law requires landlords to obtain a special license before renovating or demolishing rental properties which also mandates landlords to provide relocation assistance and the right to return for displaced tenants.

What are the requirements for landlords to obtain a special license for renovation in Hamilton?
The application for a renovation license must include the following:

• The landlord's and operator's contact details;
• A comprehensive description of the residential complex (including addresses, unit counts, rental rates, and tenancy terms);
• A copy of the tenant termination notice, necessary building permits;
• A certification of tenant rights distribution
• A report from a qualified professional confirming the need for vacant possession due to extensive repairs; and 
• Any additional information required by the director.

Below is the summary of the Renovation Licence and Relocation By-law:

Toronto

What does affordable housing look like in Toronto?

A 2021 Canadian Housing Evidence Collaborative report noted a loss of 52,215 of low-rent (under $1,000) between 2016-2021. At the same time, there was an increase in formal eviction filing rates from 2021-2022. Just like in Hamilton, affordable housing was being lost at a high pace. 

The City developed a HousingTO 2020-2030 Action Plan, which included key components of increasing affordable housing through prevention of eviction for low-income households. 

Relying on Hamilton’s efforts, the City of Toronto explored the option of introducing a renoviction by-law to help curb renovictions in Toronto. This has resulted in the adoption of a Renoviction By-Law in June 2024. 

The Toronto City Council has directed staff to draft a bylaw that establishes and regulates the legal process landlords must follow to evict tenants for renovations, with enforcement handled by the City. City staff will report back to city council on 30 October 2024. 

You can follow the development process by checking in on this Renovictions Bylaw Development page on the City of Toronto website.

Here are the components of the by-law, based on available information from the city council’s meeting on June 26, 2024:

What else is Toronto doing to address renovictions?

However, Toronto is not stopping there. The City also adopted additional decisions, which are key to understand. These include a request to the Province of Ontario to:

1. Amend the Residential Tenancies Act, 2006;
2. Make operational changes to the Landlord and Tenant Board (LTB); and
3. Proclaim and bring into force Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023.

Here is a summary of each of the ask put forth by the City to the Province:

London

The City of London has created the Housing Sustainability for All Action Plan to address the growing shortage of homes available for purchase and rent. Between 2018 and 2021, the city also experienced a decline in rental affordability. The plan prioritizes affordability as its first strategic focus. 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.

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. The report explains in Section 3.0 that:

“there is a significant cost to the municipality every time we lose an affordable unit, or the supply of affordable housing drops. Replacing these units is costly from a financial standpoint, let alone the impact on the community from a health perspective…developing an affordable rental apartment has been reported to cost $350,000 - $450,000 per unit, including hard and soft costs, fees, and taxes. It is important to consider the financial impact the loss of existing affordable units has on the overall system”.

Does London have a renoviction by-law?

On 24 September 2024, London approved the development of a renoviction by-law through a proposed amendment to the City’s  existing By-law No. L.-131-16, being “A by-law to provide for the Licensing and Regulation of Various Businesses. 

The amendment includes the addition of Schedule 23, Rental Unit License which addresses renoviction by  requiring landlords to obtain a building permit and a certified report from a qualified professional stating that extensive repairs necessitate vacant possession.

Additionally, they must apply for a Rental Unit Repair Licence within seven days of issuing an N-13 notice to the tenant and provide the tenant with a Tenant Information Package alongside the notice.

Ottawa 

In August 2024, the Ottawa City Council requested that city staff evaluate the feasibility of establishing a renoviction by-law. This includes assessing the costs associated with administering such legislation. 

The call for this initiative comes amid reports of tenants facing significant pressure to vacate their apartments. For instance, a resident named Staples was offered $5,000 to permanently leave her apartment, where she pays only $587 monthly, while similar apartments in the area would cost more than double that amount. 

At a recent city hall meeting, over a dozen individuals, including landlords, lawyers, and tenants, presented their views on the issue. The planning committee unanimously voted in favor of exploring the creation of a new anti-renoviction by-law to protect tenants from unjust evictions linked to renovations.

St Catherines

St. Catharines is taking steps to explore the implementation of an 'anti-renoviction' by-law, inspired by similar legislation in Hamilton. The city is considering the potential benefits and frameworks of such a by-law to protect tenants facing displacement due to renovations. 

This move reflects a growing recognition of the need to safeguard renters' rights and ensure housing stability in the face of rising rents and increasing demand for rental properties.

The Broader Context: Canada's Housing Crisis

Renovictions have recently become a focal point in Canadian media, but they are just one facet of a broader crisis concerning housing affordability in Canada. This issue is particularly pressing in Ontario and British Columbia, where discussions about renoviction by-laws are gaining traction. 

These provinces are experiencing significant housing challenges, and the increasing attention on renovictions reflects the urgent need for effective solutions that address the underlying problems of affordability and tenant protection.

National housing crisis

“ Over two-thirds of the supply increase that Canada needs is in Ontario and British Columbia, where affordability has long been a challenge.”
-CMHC,Housing Shortages in Canada: Solving the Affordability Crisis

Canada is facing a big problem with affordable housing, especially in Ontario and British Columbia, where there are not enough homes for people who need them. 

Building more homes takes a long time, and it also has to go through many steps with the government, which can slow things down. A 2022 report by CMHC (Canada Mortgage and Housing Corporation) Housing Shortages in Canada: Solving the Affordability Crisis explains that:

“Increasing supply will be difficult. Critically, increasing supply takes time because the time to construct is significant, but so is the time to progress through government approval processes”

These discussions reflect the urgent need for solutions that can balance the overall housing market to alleviate the affordability crisis.

Provincial response to housing crisis: Ontario

A  2022 Ontario Housing Affordability Task Force Report outlines 55 high-level recommendations to help address housing supply and affordability issues in Ontario.

Among these recommendations are significant measures, such as a $1.2 billion funding program for municipalities, rewarding them based on their success in meeting annual housing targets. The report sets an ambitious goal of building 1.5 million new homes by 2031 and emphasizes the need to remove regulatory barriers that slow down construction. Additionally, it proposes investing up to $14 million in the Ontario Land Tribunal to streamline housing disputes.

Another critical recommendation is to eliminate the Harmonized Sales Tax (HST) on qualifying new purpose-built rental housing, which will encourage the construction of more rental homes throughout the province. These strategies are essential for improving Ontario's housing market and making homes more affordable for residents.

Provincial response to housing crisis: British Columbia

In 2018, B.C announced a Rental Housing Task Force to explore strengthening the Residential Tenancy Act and Manufactured Home Park Tenancy Act to better protect tenants against eviction. 

In 2019, the Ministry of Municipal Affairs and Housing released a factsheet entitled B.C. government addressing housing affordability challenges.

This document outlined multiple programs to increase development of affordable housing, including $1.2 billion over 10 years to build supportive housing units for at-risk populations, up to $450 million in student-housing investment, $1.9 billion for building affordable rental homes and a $1.1 billion investment in the Capital Renewal Fund to upgrade and improve 50,000 non-profit and provincially-owned public housing units throughout B.C.

Concluding thoughts

The rise of renovictions across Canada, particularly in Ontario and British Columbia, reflects a broader crisis in housing affordability. Municipalities like New Westminster, Hamilton, Burnaby, London, and Toronto have led the charge by enacting local bylaws to deter bad-faith renovictions, aiming to protect tenants while balancing landlords' need to maintain and renovate aging properties.

However, the success of these bylaws will depend on effective enforcement and collaboration between municipal and provincial governments. As the housing supply remains limited, particularly in high-demand regions, solutions must address both tenant protection and housing development.

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