Renovictions Done Right – Landlord & Tenant – Leases

Renovations are necessary and important for landlords to
maintain and improve their properties. Improvements also benefit
tenants in the long run. In many cases, vacant possession is
necessary to complete the work, which displaces the current tenants
in an already difficult housing market. As such, the government
regulates “renovictions” – evictions for the
purpose of renovations, repairs or demolition. The most recent
amendments pertaining to renovictions, s. 10AB – AD of the
Residential Tenancies Act, came into force in February
2023.

The basic elements of the new renoviction provisions are:

• A landlord is entitled to renovict if vacant possession of the
  residential premises is necessary for the desired demolition,
  repairs, or renovations, and it is done in good faith.




• Where a landlord seeks to renovict, the landlord must:
  

  • Reach an agreement in writing with the tenant, or

  
  

  • Apply to the Director of Residential Tenancies requesting
    vacant possession.




• Whether through agreement or application, the tenant is
  entitled to compensation and the continuation of the lease until
  the date of termination. The Act sets mandatory minimums
  that apply even if the parties enter into an agreement.




• If a landlord proceeds without an agreement or Order of the
  Director, the tenant may be awarded moving expenses, additional
  expenses, and rental increases incurred under the tenant’s new
  lease. All of this is in addition to the standard compensation
  referenced above.

After a year of the renoviction provisions being in force, we
now have more guidance from both the Director of Residential
Tenancies as well as applicable case law to help ensure
renovictions are done appropriately.

Some of the key lessons learned in the past year are:

• If you come to a mutual agreement with a tenant regarding
  termination of a tenancy for demolition, repairs or renovations,
  using Form DR5 will help ensure all the relevant
  obligations are captured in writing.




• If you intend to renovict, you will need a proper permit that
  fully covers the extent of the renovations required. While it is
  possible to complete some additional types of work under an
  existing permit, it is much more compelling to have a permit that
  outlines the full extent of the work required.




• If an agreement to terminate the tenancy is reached or an order
  of vacant possession is issued, the landlord is required to
  maintain all services until an order is granted or the eviction
  date has arrived. This includes, but is not limited to, providing
  utilities, timely maintenance and/or temporary solutions to issues
  within the unit and general upkeep.




• Landlords are entitled to decide whether renovations or repairs
  are required to a residential premises. The renovations or repairs
  do not need to be deemed necessary. The decision to renovate or
  repair, however, must be made in good faith. For example, it cannot
  be done for the sole purpose of evicting the tenant. If done in
  good faith, the sole question becomes whether vacant possession is
  required to complete the desired repairs and renovations.




• If the landlord chooses to demolish the building, it will
  almost always be deemed to be in good faith and necessary to remove
  the tenant.




• When considering whether the landlord, in good faith, requires
  possession of the residential premises for demolition, repairs or
  renovations, the decision maker can take into consideration any
  efforts the landlord made to settle the matter.




• For evictions related to renovations or repairs, it is helpful
  to have a third-party contractor as a witness. This evidence lends
  weight to the necessity of vacant possession to complete the work
  and shows that the landlord is ready to proceed with the
  renovations.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.