Friday, September 27, 2024

What exactly is a Renoviction?

By Theresa Grant Real Estate Columnist What exactly is a Renoviction? A renoviction is a process that a landlord undertakes to evict a tenant from their unit by telling them that there needs to be work completed in the unit or on the property. Renovictions are perfectly legal in the province of Ontario, however they need to be carried out in the proper manor. This is a process that is governed by the Landlord and Tenant board. There are certain forms and procedures that must be followed. If these procedures are not followed to the letter, they are considered bad faith renovictions and that is illegal in Ontario. Renovictions can be carried out to ensure the viability and stability of older buildings. Sometimes renovictions need to be carried out to update buildings and bring in new services. If something catastrophic has happened in a building, there may be a period of time that is required for major repairs. An N13 notice is what needs to be given to the tenant to start the procedure. This notice is a notice to end tenancy because the landlord wants to demolish the rental unit, repair it, or convert it into another use. It is very important for tenants to realize and understand that they have the legal right to return to their unit once the renovations are complete, at the same rental rate that they paid prior to the renovation. It is so important for tenants to know and exercise their rights in this situation. There are steps that need to be taken and if the tenant does not take them, they could be out in the cold. Tenants have what is known as the first right of refusal. In order to reoccupy the unit when renovations are complete, the tenant must notify the landlord in writing that it is their intention to move back in when the unit is ready for occupancy and provide the landlord with an up-to-date mailing address. Units that are being demolished do not offer the option of returning. If the tenant decides not to reoccupy the unit, they are entitled to compensation from the landlord. Three months’ rent if they live in a complex with more than five units, and one months’ rent for buildings with less than five units, or the landlord can offer the tenant another acceptable unit. With the explosion of the housing market in the last few years, bad faith renovictions have become a real problem in Ontario and an absolute nightmare for some tenants. Some unscrupulous landlords try to evict tenants by saying they need to perform renovations for various reasons and need the tenant to vacate. Often after vacating the unit, it would come back on the rental market, updated, at a much higher rent than the previous tenant was paying. This practice prompted The City of Hamilton to pass the province’s first and only anti-renoviction Bylaw that would require a landlord that wants to renovict a tenant to obtain a license from the city ($715) and provide proof from an engineer that the property must be vacated in order to perform the renovations. Enforcement of this Bylaw starts in January of 2025. Here are a few indicators that may point to an upcoming renoviction. A change in ownership can often signal that a renoviction may be on the way. If your neighbourhood has changed, you notice more condos going up, store fronts changing to new businesses. Often your rent is much lower than market rents due to the fact that you’ve lived there for a long time. Sometimes, a landlord will simply ask a tenant to voluntarily pay more rent. If the tenant refuses to pay an increase, the landlord will take measures to get more money for the unit. If your landlord has informed you that you need to leave your home in order for him to perform renovations, call the Landlord and Tenant Board to get a copy of what your rights are in this situation. Always arm yourself with the facts in order to make an informed decision. Questions? Column ideas? You can email me at newspaper@ocentral.com

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