Renoviction Protections: The "Golden Age" is Over

The "Renoviction" Strategy is Dead

For years, some investors used the N13 (Demolition/Conversion/Repair) notice as a catch-all tool to vacate units, do cosmetic upgrades, and double the rent. It was a loophole, and it was profitable.

That era ended in 2025.

With the passing of Bills 51 and 97, the government didn't just tweak the rules; they built a wall. If you are planning an N13 today, you need to understand that the burden of proof—and the cost—has shifted entirely onto you.

The New Reality: N13 Changes

The process looks deceptively similar on paper, but the enforcement is night-and-day different. Here are the three pillars of the new system:

1. Permits First. No Exceptions.

In the past, you could serve an N13 and figure out the permits later. Not anymore.

The Rule: You must have valid building permits in hand before you even print the N13 form.

The Trap: If you serve an N13 and attach a permit application instead of the permit itself? Invalid. If you attach a "pre-approval"? Invalid. The notice is void, your 120-day clock resets, and you likely owe the tenant costs.

2. The "Right of Return" is Ironclad

This is where most landlords get burned. The tenant has the absolute right to move back in once the work is done.

The Kicker: They move back in at their old rent.

Let's say you spend $50,000 gutting a unit. The tenant moves back in paying their original $1,200/month (plus the standard guideline increase). You cannot reset the rent to market rate just because the unit is nicer now.

3. Compensation is Mandatory and Steep

It used to be one month's rent or offer another unit. Now? You owe three months of rent as compensation.

That's cash, upfront, before they move out. If your rent is $2,000, you are writing a cheque for $6,000 just to start the process. This isn't a deposit; it's a penalty payment you never see again.

When Does an N13 Actually Make Sense?

Given the costs, the N13 is no longer an "investment strategy." It is a tool for necessity. You use it when:

• Safety: Structural issues (foundation, black mold, knob-and-tube wiring) make the unit unsafe.
• Conversion: You are turning a duplex into a single-family home (or vice versa).
• Demolition: The building is coming down.

If your goal is just "modernizing to increase value," do it when the tenant leaves voluntarily. Forcing it via N13 is financial suicide under the 2025 rules.

The "Good Faith" Trap

"Good faith" isn't just a feeling; it's a legal standard. If a tenant moves out, and 6 months later sees the unit listed on Kijiji for double the rent—without you offering it back to them first—you are in trouble.

The LTB can (and does) fine landlords up to $50,000 for bad faith evictions. Plus, they can order you to pay the tenant the difference in rent for a year.

How to Handle Necessary Renovations (without bankruptcy)

Documentation: Your Only Defense

If you must proceed with an N13, document everything like you are already in court. Because you probably will be.

• The Permits: Stamped, dated, and active.
• The Engineer's Report: A letter stating "This unit MUST be vacant for safety."
• Communication: Emails proving you offered the Right of Return.
• Timelines: Proof that the work started immediately after they left.

Frequently Asked Questions

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