As of July 31, 2025, the City of Toronto has implemented a new Rental Renovation Licence By-law to combat “renovictions” and protect tenants from being unfairly evicted under the guise of renovations. The bylaw introduces significant new requirements for landlords who wish to carry out renovations that require a tenant to temporarily vacate their unit.
1. You MUST obtain a Rental Renovation Licence from the City before starting any repairs or renovations that require a tenant to move out.
2. You MUST create a plan to either provide temporary, comparable housing at similar rents for tenants who wish to return, offer monthly “rent-gap” payments to cover the difference between the tenant’s old rent and the average market rent for a temporary unit, or provide a moving allowance of $1,500 for a studio/one-bedroom unit or $2,500 for a two-or-more-bedroom unit.
3. You MUST allow a Right of Return: Tenants who are displaced have the right to return to their unit after the renovations are complete, with their rent staying the same as it was before they moved out. If a tenant chooses not to return, the landlord must provide prescribed severance compensation, which is a lump sum equal to three months of rent-gap compensation. Landlords who do not comply with the bylaw can face significant penalties, including up to $1,000 for a late licence application, up to $10,000 per day for continuing offenses, and up to $100,000 for a fraudulent renoviction or failure to comply with the approved plan.
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