Openroom's December Updates!
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Announcement from the Ministry of Attorney General, Openroom's attendance at Queen's Park, and more updates on developments in the rental ecosystem.
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Toronto's Renoviction By-Law: Scheduled for enforcement in July 2025, Toronto's new by-law introduces licensing requirements to curb bad-faith renovictions.
Tenant Protections Under RTA: Ontario's Residential Tenancies Act mandates safeguards like notice periods and the right of first refusal, but gaps in enforcement persist.
Landlord Concerns: Small landlords express apprehensions about financial burdens and operational challenges introduced by renoviction regulations.
Toronto has seen a rise in renovictions, where tenants are displaced under the guise of extensive renovations, often to allow landlords to charge higher rents.
Between 2017 and 2023, 950 N13 eviction notices were filed in the city, underscoring the growing issue. To address these challenges, Toronto City Council adopted a Rental Renoviction Licence By-Law in November 2024, building on similar measures in Hamilton.
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. Legitimate renovations sometimes require tenants to vacate. These legitimate renovation-based evictions exist under Ontario's Residential Tenancy Act (RTA).
The term ‘renovictions’ specifically refers to the abuse of this process.
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.
Toronto’s renoviction by-law followed the adoption of a similar bylaw in Hamilton, Ontario which will take effect in January 2025. Read Hamilton's Renoviction Bylaw: Renovation Licence and Relocation.
Why did Toronto need a renoviction bylaw?
ACORN reported that there were 950 N13s filed in Toronto between 2017 to August 2023. However, the report did not outline how many of these were bad-faith evictions.
The affordability of housing in Toronto has been under growing pressure, mirroring trends observed in other cities like Hamilton. A 2021 report from the Canadian Housing Evidence Collaborative highlighted a loss of 52,215 low-rent units (priced under $1,000) between 2016 and 2021.
In response, the City of Toronto integrated measures to address housing affordability into its HousingTO 2020-2030 Action Plan, including strategies aimed at preventing evictions among low-income households.
Toronto’s Rental Renoviction Licence By-Law followed a structured development process starting in June 2024, when City Council directed staff to create a "Hamilton-style" bylaw to curb renovictions. Between August and September 2024, extensive consultations were held with tenant and landlord organizations to shape the proposed regulations.
A draft bylaw, informed by a report from the Chief Building Official and Executive Director, was released on October 16, 2024. Amendments were proposed by the City’s Planning and Housing Committee on October 30, 2024, ensuring comprehensive input. Finally, the bylaw was adopted on November 14, 2024, through a majority vote at City Council. The Rental Renovation Licence By-law will take effect on 31 July 2025.
Below is a summary of the landlord requirements in the bylaw.
Openroom’s co-founder Weiting Bollu asked community members for their opinion on renoviction by-laws. In September’s newsletter, the community, many of whom are small landlords, were asked: “What do you think of municipalities implementing Renoviction laws?”
Below are some responses:
“I understand why these laws are needed. Too many bad landlords out to gouge the customers. Unfortunately it has more effects on smaller landlords, by making legitimate renovations more costly.”
“Laws continue to make it burdensome, emotionally and financially, for mom and pop small landlords. All the while, there are no new laws to protect small landlords from delinquent tenants. In fact, that part of the conversation is entirely missing . As a result, small landlords, with limited means comparable to big corporations, are intimated by the gross lack of protection. All citizens deserve justice and protection.”
“Maybe the municipalities should set a bylaw to make sure rent payments are followed as well? Makes things transparent and more importantly will reduce the narrative that landlords are abusing tenants rights.”
While the bylaw aims to protect tenants from bad-faith evictions, it may create additional challenges for small landlords attempting to maintain and improve their properties legitimately. The success of this regulation will likely depend on its balanced implementation and the city's ability to distinguish between necessary renovations and opportunistic evictions.
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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