Unethical landlords are now on notice.
London’s new Rental Unit Repair License by-law went into effect March 1, marking a milestone in city council’s effort to discourage so-called ‘renovictions.’
“It all started here in my ward (in) May of 2023,” explained Councillor Peter Cuddy. “It’s taken us a year and a half. We’re really satisfied and very happy with what we’ve come up with.”
The term ‘renoviction’ describes the unethical use of N-13 Eviction Notices to evict a low-income tenant under the pretense of renovating their unit, when in fact the landlord wants to hike the rent for a new tenant.
The new licensing by-law requires that landlords obtain a $600 Rental Unit Repair License from city hall for each unit where the tenant receives an N-13 Notice.
The license requires a building permit, a qualified professional’s report that the unit must be vacant during the renovation, and proof the tenant was provided an information package explaining their rights.
The license expires after six months and renewals require an explanation why the work is taking so long.
“The (provincial) landlord/tenants regulations still apply, but this is an additional regulation that council put in place to protect tenants,” explained Orest Katolyk, Director of Municipal Compliance Services.
Cuddy assureed, “This isn’t for the good landlords. This is for those who want to take advantage of those (tenants) who can’t look after themselves.”
Last September, city council approved the by-law which took inspiration from a licensing requirement in the City of Hamilton.
Deputy Mayor Shawn Lewis added, “In our last check-in with Hamilton, since their by-law went into force and effect, they’ve had zero applications. So, what I’m hoping it does is discourage the bad faith actors.”
If a landlord fails to comply with the new licensing rules— they could face stiff penalties.
“These are the highest penalties that city council has approved,” explained Katolyk. “They range between $1,000 and $5,000 per violation.”
The deputy mayor hopes the new rules are another step in addressing London’s housing crisis.
“We’ve seen four consecutive months in a row, that year-over-year, rental prices have actually decreased a little bit in our city. This (licensing by-law) will further preserve some affordable housing that people are already occupying,” he said.
More information for landlords and tenants about the new licensing rules are posted on the city website.