Toronto, ON — November 14, 2024 — In a decisive move to safeguard renters from being displaced under the pretext of renovations, Toronto City Council has passed a new renoviction bylaw aimed at curbing the practice of landlords evicting tenants and then re-renting the same units at higher prices.

The bylaw, which passed with overwhelming support (25-1), is set to go into effect on July 31, 2025. Etobicoke Centre Councillor Stephen Holyday was the lone dissenting vote.

Under the new regulation, landlords who wish to evict tenants for renovation purposes will first need to obtain a building permit, followed by applying for a $700 renovation license for each unit they intend to vacate. As part of this process, landlords will be required to provide clear documentation of the renovations planned and justify why the eviction is necessary.

An amendment introduced by Councillor Gord Perks, which passed, waives the $700 licensing fee in certain circumstances for multi-tenant houses, helping to ease the financial burden on smaller landlords.

Perhaps most notably, the new bylaw will require landlords to present a comprehensive tenant accommodation and compensation plan. This plan will ensure tenants have access to temporary housing or, if they find their own interim accommodations, landlords will be obligated to cover the rent difference through monthly “rent-gap” payments.

Landlords will also be required to provide a moving allowance to tenants being displaced. For tenants who choose not to return to their renovated units, landlords will be mandated to pay a lump sum equal to three months’ worth of rent-gap payments.

The intention behind the bylaw is to protect renters from predatory practices where renovations are used as a pretext for evictions, often resulting in former tenants being unable to afford to return to their homes due to steep rent hikes. The move is seen as a major victory for renters in a city that has faced a growing affordability crisis.

Toronto Mayor Olivia Chow, who has long advocated for stronger tenant protections, celebrated the passage of the bylaw as a significant step toward fairness for renters. “It’s great to see this move forward,” Mayor Chow wrote on social media platform X (formerly Twitter). “This bylaw is going to make a big difference in the lives of so many, and it’s a critical measure to protect renters from bad-faith landlords.”

Advocacy groups, including the Federation of Metro Tenants’ Associations, have also expressed their approval, calling the bylaw a much-needed reform in a city where renovictions have increasingly been used as a way to push low-income tenants out of their homes, only for those units to be rented at significantly higher rates.

While the bylaw is viewed as a win for tenants, some landlords have expressed concerns that it could make it harder for them to carry out necessary renovations or upgrades to their properties. However, the new regulations are seen by many as a crucial check against exploitative practices in Toronto’s competitive rental market.

As the bylaw’s implementation date approaches, tenant rights advocates are already calling on the city to monitor its effectiveness and ensure that landlords are held accountable for any attempts to circumvent the new rules.

With Toronto’s rental market continuing to grapple with affordability and supply issues, the new renoviction bylaw is poised to become a key piece of the city’s efforts to ensure that renters are not unfairly displaced under the guise of renovation projects.