Toronto City Council has approved a new bylaw aimed at protecting tenants from fraudulent renovation-based evictions, commonly known as “renovictions.” The measure, which passed with overwhelming support in a 25-1 vote, will take effect on July 31, 2025.
The bylaw requires landlords to obtain a renovation license at $700 per unit before proceeding with construction work that would require tenant displacement. Landlords must provide evidence that the proposed renovations are substantial enough to necessitate tenant relocation.
Under the new regulations, property owners must offer comprehensive support to displaced tenants, including either temporary comparable housing at similar rent levels or rent-gap payments if tenants find their own temporary accommodations. Additional requirements include moving allowances and severance compensation for tenants who choose not to return post-renovation.
Mayor Olivia Chow endorsed the bylaw while criticizing the provincial government’s decision to eliminate rent controls on newer units. “If we had real rent control for all buildings, not just the ones built before 2018, we probably wouldn’t need to do this,” Chow stated, noting that comprehensive rent control could prevent renovictions altogether.
Councillor Dianne Saxe emphasized that the bylaw targets bad-faith evictions while allowing legitimate renovation projects to proceed. “What this bylaw stops is fake evictions where a minor renovation is being used as an excuse,” Saxe explained.
The measure faced opposition from Councillor Stephen Holyday, the sole dissenting vote, who criticized it as excessive regulation. During the council session, Holyday demonstrated his disapproval by displaying a roll of red tape, arguing that the city was overstepping into provincial jurisdiction.
The bylaw represents Toronto’s latest effort to address housing security concerns in an increasingly challenging rental market. But, not surprisingly, it has also drawn criticism from real estate investors.
While the government believes it targets renovictions, the additional costs and administrative requirements might deter smaller landlords from property investment and potentially accelerate consolidation within the rental market. The combined costs of licensing fees, temporary housing, and compensation could also add significant expenses to renovation projects, potentially leading to delayed property improvements or reduced investment in aging buildings.
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