Landlords Heads-up: Toronto passes RENOVICTION bylaw

Toronto’s rental market is about to change. Starting July 31, 2025, a new bylaw passed by Toronto City Council introduces stricter regulations on evictions for renovations—commonly known as “renovictions.” These rules will require landlords to follow a detailed process and provide compensation to tenants, ensuring transparency and accountability.

Failing to comply could result in serious consequences. Here’s what you need to know.

What the New Rules Mean for Landlords

1. Building Permits and Licences Are Mandatory

   
   

   Before evicting tenants for renovations:

   
   

   • You must secure a building permit.

   • You must apply for a $700 renovation licence per unit.

   • Detailed renovation plans must be submitted for approval.

     
     

   In certain cases, such as multi-tenant homes, the licence fee may be waived, but all other requirements still apply.

   
   

2. Tenant Compensation Is Required

   
   

   Evictions won’t come cheap. Landlords must provide a tenant accommodation and compensation plan that includes:

   
   

   • Temporary housing or monthly payments to cover the rent gap if tenants secure their own accommodations.

   • A moving allowance for displaced tenants.

   • A lump sum payment equal to three months’ rent-gap payments if the tenant opts not to return.

     
     

3. Non-Compliance

   
   

   These rules are legally binding, and failing to adhere could result in fines or legal challenges.

   
   

Why This Matters to You

Mayor Olivia Chow called the bylaw a step to “protect renters from bad-faith landlords,” signaling the city’s intent to crack down on unethical practices. With tenants’ rights groups monitoring closely and a citywide education campaign set to inform renters, there’s little room for oversight.