City council passes new renoviction bylaw to ‘protect tenants from bad-faith landlords’

Toronto city council has passed a new renoviction bylaw aimed at preventing evictions under the guise of renovations, only for the unit to be rented out at a much higher price.

The bylaw, which passed by a vote of 25-1, goes into effect on July 31, 2025.

Etobicoke Centre councillor Stephen Holyday was the lone ‘no’ vote.

Once the bylaw goes into effect, landlords would first have to obtain a building permit, and then file for a $700 renovation licence per unit before they could evict tenants. In order to obtain the licence, landlords would have to prove their case and outline exactly what renovations are taking place.

An amendment to waive the fee in some circumstances for multi-tenant houses was put forth by Coun. Gord Perks and passed.

More details on the bylaw here.

Landlords would also be required to provide a tenant accommodation and compensation plan to provide returning tenants with temporary housing or monthly ‘rent-gap’ payments to cover the rent difference they have to pay if they find their own interim accommodations.

Landlords will also be required to provide tenants with a moving allowance. For tenants who choose not to return, the landlord is required to pay a lump sum amount equal to three months of ‘rent-gap’ payments.

Toronto Mayor Olivia Chow celebrated the new bylaw as a way to “protect renters from bad-faith landlords.”

“It’s great to see this move forward,” she wrote on X. “It’s going to make a big difference in the lives of so many.”

BIG NEWS!

We're taking action to protect renters from bad-faith landlords.

It’s great to see this move forward. It’s going to make a big difference in the lives of so many. https://t.co/AugiiA9Rfd pic.twitter.com/0BJNuiwJfm

— Mayor Olivia Chow (@MayorOliviaChow) November 14, 2024

The city will launch an extensive education campaign in multiple languages to inform landlords and tenants as well as advocacy groups of the bylaw.

With files from Dilshad Burman