Toronto city government launched a public education campaign yesterday (April 22nd) to protect tenants and ban landlords from illegally "evicting tenants."

The new law of Toronto's Anti-renovation Eviction Bylaw will take effect on July 31st this year.

This new law, which has been brewing since 2019 and was passed at the end of last year, aims to curb malicious evictions by landlords under the pretext of renovations. These evictions usually aim to re-rent the unit at a higher rent after renovation.

The regulation requires landlords to apply for and obtain a permit before conducting maintenance or renovations that require tenants to vacate their rental units under the provincial N13 procedure.

This regulation is designed to protect tenants from so-called "evictions" (where landlords evict tenants under the pretext of renovation), aiming to provide more protection for tenants.

Core provisions of the new regulations

Compulsory permit system: If a landlord issues an N13 termination notice based on the need to vacate for renovation, they must:

  • Apply for a construction permit
  • Spend CAD 700 to obtain a Residential Rental Renovation Permit

Economic compensation obligation:

  • Landlords must pay relocation allowances regardless of whether the tenant chooses to return
  • If the tenant does not return, the landlord must pay a one-time compensation equivalent to three months' rent difference + moving costs

The press release stated: "This regulation aims to protect tenants from malicious evictions, maintain affordable housing in Toronto, and establish a transparent and fair process for landlords to complete necessary renovations responsibly."

Once this regulation takes effect, it will provide tenants with new "protection," including "relocation allowances, which vary depending on the size of the unit. The relocation allowance for a studio or one-bedroom apartment is $1,500."

The regulation stipulates that tenants have rights, including landlords must apply for a rental renovation permit through the N13 process, and tenants can choose whether to return to the unit after renovation.

If the tenant returns, the regulation stipulates that the landlord may not charge more than the legal rent during the lease period and must provide temporary housing or similar housing with comparable rent, as well as moving expenses compensation.

If the tenant decides not to return after renovation, the landlord must provide "dismissal fees equivalent to three months' rent differential," and provide moving compensation.

In addition, the landlord must provide a one-time moving fee regardless of whether the tenant returns. Currently, the rent for a studio or one-bedroom apartment is $1,500, and the rent for a two-bedroom or larger apartment is $2,500.

In other words, if a house is vacated due to renovation, the homeowner may face $700 in application fees + $2,500 x three months = $8,200 CAD, plus moving cost compensation.

"This move is aimed at protecting all rent-controlled affordable housing," said Toronto City Councilor Paula Fletcher, who has long promoted this legislation.

The educational posters use slogans such as "New floors should not make tenants homeless" and "New kitchens are not a reason for illegal eviction," clearly informing landlords of the renovation process and informing tenants of their rights protection paths.

Ontario Legislative Process

Hamilton is the first city in Ontario to pass similar regulations. Before formulating local regulations, Toronto municipal staff analyzed its experience, making it the second city in the province to implement such legislation.

The press release from the City of Toronto stated: "The Rental Renovation Permit Bylaw will not override or delay the approval process of the Landlord and Tenant Board (LTB). It works in conjunction with the Residential Tenancies Act (RTA) to ensure fairness and transparency."

After July 31st, it seems that landlords in Toronto may be in a difficult situation on all sides.

On one side, mortgage interest rates and maintenance costs continue to rise; on another, home prices keep falling; on yet another, tenants may cause trouble at any moment; and on the last, tenant protection regulations are becoming increasingly stringent. Landlords not only have to endure the LTB process but also face strict management by the City of Toronto.

Landlords must pay $700 to apply for a permit before renovation and compensate for three months of rent... behind the goodwill of policies, who will protect the landlords? Small landlords smile bitterly: rent increases cannot keep up with property taxes, compliance cannot outpace inflation and interest rates, and being a landlord in Canada is becoming more like doing charity work. What to do?

Original article: https://www.toutiao.com/article/7496711734485451299/

Disclaimer: This article represents the author's personal views. Please express your opinions by clicking the "Like/Dislike" button below.