Renoviction Bylaws Explained in Ontario and British Columbia

Author
Jasmine Jasani
| Published at
October 23, 2024
| Updated on
October 23, 2024
Author
Jasmine Jasani
Published at
October 23, 2024
Updated on
October 23, 2024
Learn how new renoviction laws in B.C. and Ontario protect tenants facing evictions due to renovations and address the growing housing crisis

KEY TAKEAWAYS

  1. New Westminster, B.C.: Introduced the first successful renoviction by-law in 2019, requiring landlords to provide temporary housing for tenants during renovations and allowing them to return at the same rent. This resulted in a significant decrease in renovictions.
  2. Hamilton: Passed a renoviction by-law in April 2024, which will be enforced starting January 2025. Landlords must obtain a renovation license, provide relocation assistance, and allow tenants to return after renovations.
  3. Toronto: Adopted a renoviction by-law in June 2024 as part of the HousingTO 2020-2030 Action Plan. The by-law regulates the legal process landlords must follow when evicting tenants for renovations.
  4. London: Approved the development of a renoviction by-law in September 2024, requiring landlords to apply for a Rental Unit Repair License and provide a Tenant Information Package within seven days of issuing an eviction notice.
  5. Ottawa: In August 2024, the City Council voted to explore the feasibility of a renoviction by-law to protect tenants from unjust evictions due to renovations.
  6. St. Catharines: The city is exploring the possibility of implementing an anti-renoviction by-law inspired by Hamilton’s legislation to safeguard tenants from displacement due to renovations​

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:

BC Tenancy Law Changes
Summary of Changes to BC Tenancy Law (November 2021)
Aspect Summary of Changes Relevant RTA Section
Director's Orders: Renovations or Repairs Landlords can apply for an order to end a tenancy and obtain possession if they intend to renovate or repair the unit, and the work requires the unit to be vacant. Section 49.2
Conditions for Order The renovations must be necessary for the maintenance of the rental unit or building, and ending the tenancy must be the only reasonable way to achieve the vacancy. Section 49.2(1)
Application for Multiple Units For renovations affecting multiple units, landlords must submit a single application with the same effective date. Section 49.2(2)
Effective Date of Order Orders can’t take effect sooner than four months from issuance and must align with rent payment dates. Section 49.2(4)
Tenant's Right to End Tenancy Early Tenants can terminate their tenancy early after receiving notice or a director's order, provided they give a 10-day written notice and pay rent up to the effective date. Section 50(1)
Tenant's Compensation Tenants are entitled to receive compensation equivalent to one month's rent when given notice under certain sections, with additional compensation available if the stated purpose is not fulfilled. Section 51(1)
Right of First Refusal Tenants in buildings with five or more units can enter a new tenancy agreement after renovations if they notify the landlord before vacating. Section 51.2(1)
Compensation for No Right of First Refusal If a landlord fails to comply with the requirements regarding a new tenancy agreement, they must pay the tenant twelve times the monthly rent unless excused by the director for extenuating circumstances. Section 51.3(1)
Compensation for Director's Orders Tenants receiving a director's order must be compensated with one month's rent before the effective date, plus potentially twelve times the rent if renovations are not completed on time. Section 51.4(1)

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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:

Regulations Overview
Rental Regulations Overview
Category Details
License Fee $715 valid for one year, with an annual renewal fee of $125
Notice Requirements Landlords must provide tenants with clear and detailed written notice of any planned renovations, including the nature of the work and the expected duration.
Compensation for Tenants Tenants are entitled to compensation of three months' rent if they are evicted for renovations or make arrangements for the tenant’s temporary alternate accommodation.
Right of Return Onus on landlord to make arrangements for the tenant’s return to the unit at a rent of “no more than what the Landlord or Operator may have lawfully charged if there had been no interruption to the Tenant’s tenancy.”
Professional Assessment Landlords must provide a professional assessment report justifying the need for vacant possession to conduct the renovations.
Tenant Rights Tenants have the right to challenge the eviction notice through the City’s Municipal Licensing and Standards (MLS) and have access to dispute resolution mechanisms.
Fines $10,000 - $25,000 for individuals. $50,000 - $100,000 for corporations.

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:

Renovation Licence Requirements
Renovation Licence Requirements
Requirement Description
Renovation Licence Application Landlords must apply for a renovation licence within seven days of issuing an N13 notice to a tenant.
Documents Required Landlords must submit the following documents as part of the renovation licence application:
  1. Confirmation of approved building permits and any other required approvals.
  2. A copy of the N13 notice to end tenancy.
  3. Confirmation that a Tenant Information Notice has been posted, providing information on eviction prevention, tenants' rights, and the Renovictions By-law.
  4. A report from a qualified person stating that vacant possession is necessary for the renovation.
  5. A tenant accommodation and/or compensation plan signed and agreed to by the tenant.
Tenant Notification Landlords must provide tenants with a notice of their renovation licence application.
Renovation Start Restriction Landlords are prohibited from starting renovations until their renovation licence is obtained.
Scope of the By-law The by-law applies to all rental units in Toronto, except for certain exempted types of housing. Some housing types may be considered for a phased approach.

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:

Renoviction: Residential Tenancies Act Amendments
Residential Tenancies Act Amendments by City of Toronto
Request Description
Vacancy Control Reintroduce vacancy control by tying rent increases to the rental unit rather than the tenancy, ensuring rent remains controlled between tenants.
Extended Rent Control Introduce rent control for rental units first occupied after November 15, 2018, extending protection to newer properties.
Temporary Accommodation Require landlords to find temporary accommodation or provide relocation assistance for tenants during renovations if they plan to return.
Building Permits for Evictions Landlords must obtain and provide tenants with a building permit before issuing an N13 eviction notice, and submit it to the Landlord and Tenant Board as part of any application to terminate a tenancy.
Equal Rights for Smaller Buildings Provide tenants in buildings with less than five units the same rights and compensation as those in larger buildings.
No-Fault Eviction Compensation Increase compensation for tenants affected by no-fault evictions to better support their relocation efforts.
Repayment Agreements Remove the use of ex parte eviction orders for breached repayment agreements, allowing tenants more protection from immediate eviction.
Tenants’ Rights Information Require landlords to include a plain-language tenants' rights information package with N13 eviction notices, similar to the City of Toronto’s Eviction Prevention Handbook.
N11 and Buyout Agreements Introduce regulation of N11 (mutual termination) and buyout agreements to protect tenants from unfair agreements.
Above Guideline Increase (AGI) Reforms Amend AGI rules to eliminate eligibility for capital expenditures related to general repairs and require landlords to save 10% of rental income for future repairs.
Renoviction-toronto: Operational Changes
Toronto City Council Requests: Operational Changes to LTB
Request Description
In-Person Hearings Allow tenants the option for in-person hearings at the Landlord and Tenant Board to assist those without access to digital devices or reliable internet.
Simplified Notices Revise Landlord and Tenant Board notices to use plain language, ensuring clarity and including tracking numbers linked to a public registry.
Provincial Rental Registry Establish a provincial rental registry to monitor building ownership, rental rates, Above Guideline Increases (AGIs), eviction filings, and outcomes, including tracking N12 and N13 eviction data.
Bill 97: Helping Homebuyers, Protecting Tenants Act, 2023
Bill 97: Key Tenant Protection Proposals
Proposal Description
Renovation Termination Notice Landlords must include a report from a licensed professional confirming that renovations are extensive and require the tenant to vacate the rental unit.
Right of First Refusal Landlords must provide tenants, who wish to return after renovations, with written updates on the estimated completion date and any changes.
60-Day Grace Period Tenants must be given at least 60 days to move back in after the unit is ready, allowing them to terminate their temporary accommodation with sufficient notice.
Tenant Remedies If landlords fail to provide proper notices or respect tenants' right of first refusal, tenants can apply to the Landlord and Tenant Board for remedies within two years of moving out or six months after renovations are completed.

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.

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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.

FAQ

Styled FAQ Dropdown Menu
01. What is a renoviction, and how does it affect tenants in Canada?

A renoviction is when a landlord evicts a tenant, claiming that significant renovations or repairs are necessary and cannot be completed while the tenant remains in the unit. This practice can displace long-term tenants and allow landlords to increase rent once renovations are complete. Renoviction laws in British Columbia and Ontario aim to protect tenants from unjust evictions and provide rights such as compensation and the ability to return to the unit after renovations.

02. How do renoviction laws protect tenants in British Columbia?

In British Columbia, renoviction laws require landlords to apply to the Residential Tenancy Branch (RTB) for approval before evicting tenants for renovations. Tenants must receive a minimum of four months' notice and one month’s rent as compensation. They also have the right to return to their unit at the same rent once renovations are complete.

03.What are the tenant rights during a renoviction in Ontario?

In Ontario, landlords must give tenants at least 120 days' notice (four months) before evicting them for renovations, using an N13 notice. Tenants have the right of first refusal to return to the unit at the same rent if the building is rent-controlled. Compensation is provided, depending on the size of the building, ranging from one to three months’ rent.

04. Can a tenant dispute a renoviction in British Columbia or Ontario?

Yes, tenants can dispute renovictions in both British Columbia and Ontario. In BC, tenants can challenge the necessity of the eviction through the Residential Tenancy Branch (RTB) if they believe the renovations do not require vacant possession. In Ontario, tenants can file a complaint with the Landlord and Tenant Board (LTB) if they suspect bad faith or if the landlord does not follow through with the renovations.

05.What compensation are tenants entitled to after a renoviction?

In British Columbia, tenants are entitled to one month’s rent as compensation if they are evicted for renovations. In Ontario, tenants receive three months' rent as compensation if the building has five or more units; otherwise, they receive one month's rent. Additionally, tenants in both provinces may have the right to return to their unit at the same rent once renovations are complete.

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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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