A “renoviction” refers to a process by which a landlord evicts a sitting tenant under the pretense of renovations that are so extensive they require a building permit and the unit to be vacant. In some cases, they say they must evict the tenant because they are converting the unit to another use, or demolishing the unit.
Often landlords will informally ask or pressure their tenant to voluntary vacate the unit for the renovation. However, the only legal way for a landlord to re-possess a rental for a renovation is by serving their tenant with an N13 Notice “Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it or Convert it to Another Use.”
It’s important for renters to know that if they are evicted from their home because of renovations they have the legal right to return to their unit at the same rental rate they paid before the renovations. In order to ensure their right of first refusal to return to their unit, tenants must inform their landlord in writing that they intend to reoccupy the unit when the renovations are complete, and provide an up-to-date mailing address. Units that are demolished do not offer tenants the right of return. If the tenant chooses not to exercise their right of first refusal the tenant is entitled to compensation from the landlord (three months rent for complexes with more than five units or one month rent for complexes with less than five units) or the landlord can offer the tenant another acceptable unit.
Why are renovictions a problem in Ontario?
The short answer is: bad faith renovictions are a way for landlords to make more money. Financialized landlords are snapping up a bigger share of Ontario’s rental housing and they’re doing so with a strategy in mind: exploit rent control loopholes to maximize the revenue they can generate from re-renting renovated units at significantly higher rents. Landlords know that Ontario’s vacancy decontrol loophole means it’s profitable for them to evict long-time tenants because likely that tenant is paying a lower rent than what a landlord could charge to a new renter.
Financialized landlords have reshaped the rental housing market in harmful ways. Leaving the provision of rental housing almost entirely up to the private market was always poor policy. What’s different now is that financialized landlords are facilitating investments for their shareholders, and a financialized landlords’ priority is to ensure their shareholders see returns on their investment every year. They just aren’t interested in waiting 20, 30 years for a big payout from selling the property. They want shorter term returns and the business model to make this happen is to charge unaffordable monthly rents.
What are the signs my landlord might renovict me?
Given this context, it’s not a stretch for renters to be worried about getting renovicted. This might happen with no warning, but typically, there are signs your landlord might be gearing up to try and renovict you. Here’s what to look out for:
- A change in ownership – if your landlord is selling or has sold your building recently, this increases the likelihood that a new landlord may try and get rid of tenants who have lived there for a long time.
- Your neighbourhood has changed – has there been a lot of construction in your neighbourhood? Are more condo buildings going up? Are storefronts changing to new businesses? This is a process called gentrification, and often, can be the earliest sign renovictions might become more common in your area.
- Your rent is a lot lower than other available units on the market – have a look at what other rental units are being listed at in your area. Is your rent significantly lower? If you’re paying a monthly rent that is much lower than other units, your landlord may eventually try to cash in on higher rent prices by evicting you.
- Your landlord has asked you to voluntarily pay more in rent – has your landlord told you that they need you to pay more in rent because they are upgrading or making repairs? Have they told you they’re experiencing financial hardship and might need to sell the property if you don’t pay more? Have they applied to the Landlord and Tenant Board for an Above Guideline Increase (AGI)? These attempts to get more rent from you can sometimes be the first step before trying to renovict you.
- Your landlord gives you an N13 notice “Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it or Convert it to Another Use.” – This is a definite attempt by a landlord to renovict you (whether it’s legitimate or not). Remember: receiving a notice from your landlord is not the same as being evicted. Your landlord can’t evict you. They have to apply to the Landlord and Tenant Board to have an eviction granted – and giving you the notice is the first step in that process. You don’t have to move out if you receive an N13 notice. Renters can stay in the unit until the Board issues an order with a termination date – which will only happen if the landlord’s application is successful.
If you have received an N13 notice, or if your landlord has asked you to pay more in rent above what the guidelines allow – get legal advice from your local legal clinic or visit www.stepstojustice.ca.