Toronto City Council Approves Renoviction Bylaw

The City of Toronto has passed a new renoviction bylaw to prevent landlords from evicting tenants under the pretense of renovations, only to re-list the unit at a much higher price without completing the work.

Under the new bylaw, landlords must first acquire a building permit and a $700 licence for the renovation before they can evict tenants. They must also prove the proposed work is so extensive that the tenant must move out during its duration.

For tenants who choose to return to their units when renovations are complete, landlords must provide a plan with temporary, comparable housing at similar rents. If tenants are finding their own temporary housing, landlords will be required to give monthly rent-gap payments to cover the rent difference.

Tenants who choose not to return must be offered severance compensation equal to three months of rent-gap payments.

Regardless of whether a tenant opts to return or not, landlords will be required to provide a moving allowance of $1,500 for a studio or one-bedroom unit and $2,500 for a two-or-more-bedroom unit.

Violations of the bylaw may result in fines up to $100,000 and equivalent to the economic benefit gained from non-compliance.

The bylaw goes into effect on July 31,2025.