A Property Management Failure Every Ontario Owner Should Learn From

Estimated reading time: 5 minutes

A Hamilton renoviction case put a spotlight on something rental-property owners can underestimate: how much legal exposure sits behind the paperwork of a renovation-driven eviction.

It also demonstrated why the history of a tenancy matters even when a property manager becomes involved only later in the process.

In May 2025, a Hamilton provincial offences court found landlord Kevin Moniz guilty on four counts related to knowingly failing to provide former tenants with their right of first refusal after renovations at a Strathearne Avenue property.

According to CBC News' reporting on the case , Moniz was fined $25,000 on each count, for a total of $100,000.

How the Hamilton renoviction case unfolded

The process began in 2021, when N13 notices were issued to long-term tenants on the basis that the units needed to be vacant for extensive renovations.

The tenants subsequently moved out during 2022 and early 2023.

According to the court evidence reported by CBC, tenants had indicated that they intended to return after the work was completed.

Instead, the renovated units were leased to new tenants at substantially higher rents.

One tenant testified that she had lived in her unit for nearly 20 years and had provided written notice that she intended to return after the renovations.

The court found that the right-of-return obligations had not been honoured and imposed significant penalties.

Where the property management company fit into the case

The property management company's role was narrower than the landlord's, which is important when interpreting the case.

Cornerstone Select Properties was hired in January 2023, after much of the original eviction process had already occurred, to assist with leasing the vacant units.

The company was tried alongside the landlord and convicted on one of the four counts, connected with a tenancy that overlapped with the period of its involvement.

Its president testified that the company had not been aware that the entire building had previously been subject to renovation-related evictions.

The court nevertheless found liability in relation to the one overlapping tenancy.

The useful lesson for property owners is not that every leasing company automatically becomes responsible for decisions made before it was retained.

It is that the history of a vacant unit can matter when the property is being re-leased.

A property manager taking over a recently renovated or vacated rental should understand how possession became available, whether an N13 was involved, and whether any former tenant has continuing statutory rights connected with the unit.

Why this matters for Ontario rental-property owners

Renovation-related tenancy termination is one of the more technical areas of Ontario rental law.

The provincial framework is established under the Residential Tenancies Act , while municipalities can also impose additional local requirements.

In Toronto, for example, the Rental Renovation Licence By-law adds a municipal licensing process and additional requirements for certain renovation-related evictions.

Hamilton has also introduced its own renovation-licensing framework.

This creates multiple layers of compliance for an owner to consider:

• Whether the proposed work actually requires vacant possession.
• Whether the correct provincial notice and process apply.
• What rights the tenant has before, during, and after the renovation.
• Whether municipal licensing or relocation requirements also apply.
• What documentation needs to be retained throughout the process.

Missing one part of that process can create consequences long after the renovation itself is finished.

Understanding the tenant's right of first refusal

One of the central issues in the Hamilton case was the tenant's right to return after renovations.

Under Ontario's Residential Tenancies Act, a tenant displaced for qualifying renovation work may have a right of first refusal to return to the rental unit after the work is completed, provided the applicable statutory requirements are followed.

This can include the tenant giving the landlord written notice of their intention to exercise that right.

Where the right applies, the landlord cannot simply complete the renovation and treat the unit as an unrestricted vacancy available to whichever new tenant will pay the highest rent.

That is why the history of the tenancy remains relevant even after the unit is empty.

What a property manager should ask before re-leasing a renovated unit

A leasing assignment should not begin with only the question, "What can this unit rent for?"

Where a property has recently been renovated or vacated, additional due diligence may be appropriate.

Questions can include:

• Why did the previous tenant leave?
• Was an N13 or another termination notice involved?
• Did the former tenant provide written notice that they wanted to return?
• Has the owner retained the relevant notices and correspondence?
• Were all provincial requirements completed?
• Did a municipal renoviction by-law apply to the property?
• Are there any outstanding obligations before the unit can be offered to a new tenant?

Those questions may seem unrelated to ordinary leasing and tenant placement , but this case illustrates why they can matter.

Renoviction compliance goes beyond serving an N13

Renovation-related tenancy matters involve more than completing a form.

The owner needs to understand whether vacant possession is genuinely required, what notice applies, what timelines must be followed, what documentation is required, and what rights continue after the tenant leaves.

In municipalities with additional renoviction rules, there may also be local licensing, relocation, compensation, or reporting obligations.

A professional Property Management company should therefore have a process for identifying when a tenancy situation requires additional legal or regulatory attention rather than treating every vacancy as a routine leasing assignment.

Depending on the circumstances, that may also mean involving the appropriate legal or paralegal professional rather than attempting to provide legal advice beyond the property manager's role.

What property owners should look for

When evaluating a property management company, rent collection and maintenance coordination are only part of the picture.

Owners should also understand how the company handles situations where tenancy history, municipal regulation, and leasing overlap.

Useful questions include:

• How do you document the history of a tenancy when taking over management?
• What information do you review before re-leasing a recently renovated unit?
• How do you track notice deadlines and tenant responses?
• How do you stay current with municipal rental regulations?
• When do you involve a paralegal or lawyer rather than handling an issue internally?

These questions can reveal much more about a company's compliance systems than simply asking whether it is familiar with the Residential Tenancies Act.

The bottom line

The Hamilton case demonstrates that renovation-related tenancy obligations can follow a property beyond the point when the tenant physically moves out.

They can affect the renovation, the owner's obligations, and even the later leasing of the finished unit.

For owners, the lesson is to treat renoviction compliance as a complete process rather than a single notice.

For property managers, the lesson is equally important: understand the history of the unit before treating it as an ordinary vacancy.

A renovation may end when construction is complete. The legal obligations connected with the tenancy may not.

Frequently Asked Questions

What is a tenant's right of first refusal after renovations in Ontario?

In certain renovation-related tenancy terminations, an eligible former tenant may have the right to return to the rental unit after the work is complete, subject to the requirements of Ontario's Residential Tenancies Act. This generally involves the tenant providing the required written notice of their intention to return.

What happened in the Hamilton renoviction case?

In May 2025, a Hamilton court found landlord Kevin Moniz guilty on four counts related to failing to honour former tenants' right of first refusal after renovation-related evictions at a Strathearne Avenue property. He was fined $25,000 per count, for a total of $100,000. A property management company later involved in re-leasing the property was also convicted on one count connected with a tenancy that overlapped with its involvement.

Can a property manager face liability in a renoviction situation?

Liability depends on the facts, the party's role, and the applicable law. The Hamilton case demonstrates that a property management company involved after the original eviction can still become part of a compliance matter if its later activities overlap with unresolved tenant rights.

Does an N13 automatically allow a landlord to rent the unit to someone new after renovations?

No. Renovation-related termination can create continuing obligations, including a former tenant's potential right to return. Owners need to confirm that all applicable provincial and municipal requirements have been satisfied before treating the unit as an unrestricted vacancy.

Do Toronto landlords have additional renoviction requirements?

Toronto has a municipal Rental Renovation Licence By-law that adds requirements for certain renovation-related tenancy terminations. These municipal rules operate alongside the provincial Residential Tenancies Act, so owners need to consider both frameworks where they apply.