Being a landlord is a great way to earn some extra cash. If you have an income property that you’ve long been wanting to renovate or upgrade but your tenant shows no sign of moving out any day soon, don’t let that be the thing holding you back from making any necessary or cosmetic renovations. Landlords are permitted to renovate during a lease. As a respectable Toronto landlord, you’ll want to ensure you’re playing by the rules, so here’s what you need to know about evicting tenants for renovations in Ontario.
HOW EXTENSIVE IS THE INTENDED RENTAL UNIT RENOVATION?
Not all rental property renovations will require your tenant to move out. Can a landlord remodel while occupied? Yes, and if the work that needs to be done is not overly disruptive or is just a few minor upgrades, then your tenant can stay put.
If, however, the renovations you need to do are extensive and require a building permit, this will require your tenant to vacate during the extent of the renovations.
HOW TO EVICT A TENANT FOR RENOVATIONS
If your tenant should need to vacate the rental property during the renovations you’re required to give minimum 120 days written notice with an N13 Form on the last day of a rental period.
Keep in mind, for the sake of renovating a tenanted property, you are only temporarily evicting a tenant. You are required to give your tenant the right to move back into the rental unit after the renovations are complete for the exact same rental rate they had been paying prior to the renovations.
If your tenant would like to reoccupy the unit once the renovations are complete, they must give written notice of their intention to do so and provide you with their new address.
It’s worth noting that once you’ve given your tenant the N13 Form informing them of their need to vacate for the rental unit renovation, they are allowed to vacate earlier than the 120 days’ notice. A tenant has the right to give you ten days’ notice of their intention to end tenancy with an N9 Form.
Related – Selling a Tenanted Property: What Landlords Need to Know
COMPENSATION FOR EVICTING TENANTS FOR RENOVATIONS ONTARIO
If your rental property is in a building with five or more residential units, you owe your tenant compensation for the inconvenience of needing to vacate the property while the rental unit renovations take place.
If you are ordered by the city or the Landlord Tenant Board to renovate your property then no compensation is owed to your tenant for the inconvenience.
If Tenant Plans to Reoccupy the Unit
You are obligated to pay your tenant the equivalent amount in rent for the time it takes to complete the renovation should they give you written notice of their intention to reoccupy the unit. The maximum compensation owed is three months’ rent and is due no later than the termination date outlined in your N13 Form.
If Tenant Does Not Plan to Reoccupy the Unit
Should your tenant not give written notice of their intention to reoccupy the rental property, you can either pay them three months’ rent or offer them another rental property that is acceptable to them.
If you have questions regarding your rental property feel free to get in touch with us. Here are some resources you will find useful:
Landlord Tenant Board’s full guidelines on evicting a tenant for renovations Ontario .