Renovation eviction

[Matt Geerts]

Warning: If you're not from Ontario Canada, your advise is probably useless here. You have no idea what "tenant friendly" means.

I am working on a deal with a triplex... there's a slim chance that I can make it happen, but I want to be prepared with a plan if it goes through.

The interior is crap and the rents are... mediocre. At the price that I'm going for it is still a good cash flowing property.

However, I'd prefer to work with higher rents, higher value property and higher quality tenants. So, what I'd like to do (after I wait a bit for funds to stabilize) is to kick out one tenant at a time to do a total overhaul of each apartment. The end goal is higher rents and to refi my reno money plus extra.

Now the fun stuff... The Ontario Landlord Tenant Board and Residential Tenancies Act.

It is my understanding that:

1. I may evict a tenant if the work to be done:
   1. Requires a permit
   2. Will make the unit "unsafe" to live in. Is it correct that turning off the power and water to do wiring and plumbing makes it "unsafe"? I'd also be tearing out the kitchen and floors.
2. Tenants have first right of refusal after the renovation is done. 
   1. I must inform them of that right when I give notice, and 
   2. They must express their intent before they move out. 
   3. If they move out before the date on my notice, they forfeit the right.
   4. THEY CAN PAY THE SAME RENT

My greatest concern is that after spending 15k+ renovating an apartment, that the first right of refusal allows them to move back in and keep paying the same rent. Is that true? That is absolutely absurd, but welcome to Ontario, where we wear pants on our heads and give tenants money when they trash our houses.

Can I apply to the board for higher rent? Would I do this after the tenant has moved back in, or before? 

Can I get some Ontario landlord input here?

@Greg S.

[Thomas S.]

I think all you questions have been answered.

You can evict to move in, reno. and then move on the next unit and do the same. The LTB is a major PITA and could for any reason deny your request as they are not obligated to inforce the rules of the RTA. Evicting to reno only requires that you have a building permit.

As stated many tenants will choose not to move back as it will be extremely difficult finding another unit, moving, terminating that lease and then moving back.  But if they do the have the right to pay the same rent as when they left.

Ask if they want first right, if the say yes tell them you have no idea how long the reno will take, could be anything from a week to a month to 6 months. This makes their life more difficult and they are more likely to say no.   

Since I have never evicted to do reno I have no first hand experience as to what a arbitrator mah decide. 

Ontario landlords needing info on previous rulings should do a search on CanLII - Ontario landlord tenant board. Do a search under - Evict to renovate.