Toronto’s New Rental Renovation Licence Bylaw Takes Effect July 31, 2025: What Landlords & Tenants Need to Know

Say goodbye to shady “renovictions.” Toronto is taking action to protect tenants and preserve affordable rentals.

On November 14, 2024, Toronto City Council officially adopted the Rental Renovation Licence Bylaw, a new measure aimed at stopping bad faith evictions and keeping rental housing fair and accessible. The bylaw takes effect on July 31, 2025, and will directly impact how landlords approach renovations that require tenants to temporarily move out.

What Is the Rental Renovation Licence Bylaw?

The bylaw requires landlords to obtain a licence before beginning any repair or renovation work that would displace tenants under Ontario’s N13 eviction process. This includes structural repairs, major retrofits, and any other upgrades that make a unit temporarily uninhabitable.

But this isn’t just red tape, it’s a tenant protection strategy.

To be granted a licence, landlords must:

  • Notify tenants of the renovation plans
  • Provide compensation or a relocation plan
  • Offer the right to return once the work is completed

Why It Matters

This bylaw is Toronto’s direct response to growing concerns about “renovictions”, a practice where landlords evict tenants under the guise of renovations, only to relist the units at significantly higher rents. These bad faith evictions disproportionately affect vulnerable renters and contribute to the loss of affordable housing in the city.

By requiring a formal licensing process, the city hopes to:

  • Prevent abuse of the N13 eviction pathway
  • Ensure tenant rights are upheld
  • Preserve long-term rental stock
  • Promote fair and responsible renovations

What Landlords Need to Do

If you’re a landlord planning renovations that might displace a tenant, here’s what you need to know:

  1. Apply for a Rental Renovation Licence before starting any work.
  2. Follow all bylaw requirements, including proper documentation, tenant communication, and providing financial compensation or alternative accommodations.
  3. Offer the original tenants the option to return to their unit after the renovations are complete.

Failing to comply could result in enforcement action, fines, and delays in your renovation timeline.

What Tenants Should Know

Tenants have the right to:

  • Receive proper notice and documentation
  • Be informed of their compensation or relocation options
  • Return to their home once renovations are finished
  • Report concerns or violations to the city

This bylaw gives renters a stronger voice and helps prevent unjust evictions disguised as upgrades.

Final Thoughts

Toronto is sending a clear message: tenants deserve stability, transparency, and fairness. The Rental Renovation Licence Bylaw is a significant step forward in tackling the housing crisis while ensuring that necessary improvements to aging rentals don’t come at the cost of people’s homes.

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