Ontario is witnessing a significant shift in how cities protect tenants from renovictions—the practice where landlords evict tenants under the pretense of major renovations, often to bypass rent control and raise rents. With a 300% increase in renoviction notices across the province between 2017 and 2023, thousands of tenants have been displaced from affordable homes. As provincial enforcement struggles with backlogs, Ontario municipalities are stepping up with innovative by-laws to close enforcement gaps and strengthen tenant rights.
Table of Contents
- Understanding Renovictions and Ontario’s Legal Framework
- Hamilton’s Pioneering Renoviction By-law
- Toronto’s Comprehensive Anti-Renoviction Framework
- Other Ontario Cities Join the Movement
- Legal Foundation and Challenges
- Market Impacts and Stakeholder Perspectives
- The Future of Tenant Protections in Ontario
- Summary
Understanding Renovictions and Ontario’s Legal Framework
Renovictions occur when landlords issue an N13 notice under Ontario’s Residential Tenancies Act (RTA), claiming that vacant possession is required for substantial renovations or repairs. While the RTA sets out rules for such evictions, enforcement is often slow, and tenants may not be aware of their rights.
- N13 Notice: Used when a landlord claims a unit must be vacated for major renovations or repairs.
- N12 Notice: Used when a landlord or their family intends to move into the unit, or the property is being sold.
Municipalities are now using their licensing powers under the Municipal Act to add oversight and enforcement, inspired by successful models in British Columbia.
Hamilton’s Pioneering Renoviction By-law
Hamilton became the first Ontario city to implement a rental renovation licensing by-law on January 1, 2025. This move was in response to a staggering 983% increase in N13 notices between 2017 and 2022, which contributed to the loss of 5,500 affordable units.
Key features of Hamilton’s Renovation Licence and Relocation By-law 24-055:
- Landlords must pay a 715 dollars initial licence fee per unit, with 125 dollars annual renewals.
- Building permits and professional engineer reports are required to confirm that renovations genuinely require vacant possession.
- Tenants are guaranteed the right to return at their original rent.
- Landlords must provide temporary accommodation or rent-gap compensation during renovations.
- Penalties range from 500 to 50,000 dollars for corporations, with additional inspection fees for repeated non-compliance.
- The city allocated 1 million dollars annually for enforcement, including dedicated staff and integration with building permit systems.
Toronto’s Comprehensive Anti-Renoviction Framework
Toronto followed Hamilton’s lead with its Rental Renovation Licence By-law 53-2025, adopted on November 14, 2024, and taking effect July 31, 2025. Toronto’s approach is the most comprehensive in Ontario, addressing the loss of over 52,000 affordable rental units between 2016 and 2021.
Highlights of Toronto’s by-law:
- Landlords must obtain building permits and an engineer or architect’s report before applying for a renovation licence.
- A 700 dollars per unit licence fee is required within seven days of issuing an N13 notice.
- Landlords must provide either temporary comparable housing at similar rents or monthly rent-gap payments based on current market rates.
- Tenants receive moving allowances (1,500 dollars for one-bedroom units, 2,500 dollars for larger units) and the right to return at their original rent.
- A public online registry allows tenants to verify landlord compliance.
- Penalties include up to 1,000 dollars for failing to submit a licence application, 10,000 dollars per day for ongoing offences, and up to 100,000 dollars for evicting tenants without completing renovations.
- The city launched a multi-lingual public education campaign to prepare landlords and tenants for the new rules.
Other Ontario Cities Join the Movement
The momentum is spreading, with several municipalities developing their own anti-renoviction measures:
- London: Implemented its Rental Unit Repair Licence in March 2025, focusing on verification requirements and tenant information. Penalties for unlicensed renovations are set at 2,500 dollars.
- Kitchener: Scheduled to present its proposed by-law in June 2025, modeled after Hamilton and Toronto.
- Mississauga: Conducted public consultations in spring 2025, signaling broad protections for all rental properties.
- Ottawa: Despite staff concerns about costs, council approved a feasibility study for a potential by-law, with a report expected in 2026.
- Oshawa, Whitby, St. Catharines, and Guelph: Each city is exploring or developing by-laws to protect tenants from bad-faith evictions and preserve affordable housing.
Legal Foundation and Challenges
Municipal anti-renoviction by-laws are carefully structured to complement, not conflict with, provincial law. The New Westminster model from British Columbia, upheld by the B.C. Court of Appeal in 2021, provides a strong legal precedent. Ontario’s Municipal Act grants cities broad powers to protect residents’ health, safety, and welfare, including through business licensing.
Potential legal challenges focus on jurisdiction, but by-laws that add oversight—rather than replace provincial rules—are likely to withstand scrutiny. Bill 97, the Helping Homebuyers, Protecting Tenants Act of 2023, further supports municipal action by allowing the province to set a standardized framework for rental-replacement by-laws.
Market Impacts and Stakeholder Perspectives
The new by-laws have sparked debate between tenant advocates and landlord associations:
Landlord Concerns:
- Increased administrative costs: 600–715 dollars per unit licence fees, engineer reports, and compliance documentation.
- Worries about reduced investment in rental housing and adversarial relationships with tenants.
- Small landlords may face disproportionate impacts.
Tenant Advocacy:
- Groups like ACORN report improved housing security and successful challenges to questionable renovictions.
- Public registries and mandatory information packages empower tenants.
- Academic research confirms that renovictions remove affordable housing, with displaced tenants facing 500–600 dollars monthly rent increases.
The Future of Tenant Protections in Ontario
The rapid adoption of anti-renoviction by-laws marks a turning point in Ontario’s housing policy. While a patchwork of municipal regulations is emerging, the province may eventually standardize protections to ensure consistency.
Key Takeaways:
- Municipal by-laws are filling enforcement gaps left by provincial backlogs.
- Early results from Hamilton and New Westminster show that well-designed by-laws can curb bad-faith renovictions without hindering legitimate renovations.
- Ongoing monitoring and adequate enforcement resources are essential for success.
Summary
Ontario’s anti-renoviction movement is reshaping the landscape of tenant protections. Cities like Hamilton and Toronto are leading the way with robust by-laws that safeguard affordable housing and empower tenants. As more municipalities join the movement, both landlords and tenants must stay informed about evolving regulations. The future of Ontario’s rental market will depend on the balance between protecting tenants from displacement and supporting necessary building improvements—one city at a time.
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Sukh Law publishes articles for information purposes only and is not intended to constitute legal advice.
