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Understanding Toronto's Renovictions Bylaw: What Homeowners Need to Know

By Mujtaba Chaudhry | Licensed Residential General Contractor

Intro
On July 31, 2025, Toronto officially launches its Rental Renovation Licence Bylaw—cracking down on renovictions and raising the bar for legal, tenant-safe renovations. This is imperative knowledge for both landlords and homeowners planning renovation work while tenants remain in place.


🧾 What Is a “Renoviction”?

A renoviction occurs when a landlord evicts a tenant under the pretext of needing vacant possession for renovations—often so they can increase rent afterwards. The new bylaw changes that dynamic by requiring landlords to obtain approvals before issuing an eviction notice (N13) :contentReference[oaicite:3]{index=3}.


📌 Key Provisions of the Bylaw

  1. Rental Renovation Licence
    Landlords must apply within 7 days of issuing an N13 notice and pay a ~$700 licence fee per unit to the city :contentReference[oaicite:4]{index=4}.

  2. Building Permit Requirement
    A valid building permit must already be approved before applying for the licence :contentReference[oaicite:5]{index=5}.

  3. Qualified Report Requirement
    Submission of a report by a licensed engineer or architect proving the unit must be vacated for construction :contentReference[oaicite:6]{index=6}.

  4. Tenant Notification and Rights
    Tenant Information Notices must be posted, with compensation or temporary accommodation plans outlined in advance :contentReference[oaicite:7]{index=7}.

  5. Compensation Requirements
    Includes:

    • Moving allowances ($1,500 for 1 BR, $2,500+ for 2 BR+)
    • Rent-gap or severance payments if tenants don’t return after renovation :contentReference[oaicite:8]{index=8}.

🏘️ Landlords & Condo Owners: Why It Matters

  • If the licence isn’t secured before issuing an N13, the eviction is invalid.
  • Failure to comply can result in fines up to $100,000 per violation :contentReference[oaicite:9]{index=9}.
  • The bylaw fosters transparency via a publicly searchable licence registry for each unit :contentReference[oaicite:10]{index=10}.

🛠️ Why This Is Relevant to Homeowners Hiring a GC

  • Even for residential properties not rented out, if tenants remain on-site, your renovation partner must comply.
  • As licensed GCs, we handle:
    • Building permit procurement
    • Engineer-based vacancy reports
    • Coordinating compensation logistics (if duplexes or rentals are involved)
  • Hiring anyone unfamiliar with this bylaw puts you at legal risk—and could invalidate work or delay timelines dramatically.

⚠️ Risks of Working with Uninformed Contractors

  • They may advise skipping building permits.
  • They might ignore timelines or documentation, leaving you legally exposed.
  • If tenants complain or file a complaint, your project could shut down mid-work and cost you.

✅ Bottom Line: Hire Professionals Who Understand the Rules

We're licensed GCs in Toronto, familiar with the Renovation Licence process. We'll make sure all protocols are met, including:

  • Building permit acquisition before any N13 notice
  • Coordination with engineers or architects for vacancy justification
  • Clear compensation plans if tenants are involved

Renovating with Tenants or a Rental Unit Involved?

We’re licensed General Contractors who understand Toronto’s new renoviction laws. From permits to tenant notices—we make sure you’re covered, legally and structurally.