Facebook
X
Pinterest
Copy Link
Toronto’s New Rental Renovation Licence By-law – The city’s new rules on renovictions
Toronto has introduced a new by-law aimed at protecting tenants from unfair evictions under the guise of renovations—commonly known as renovictions. The Rental Renovation Licence By-law, effective July 31, 2025, adds important requirements for landlords and new protections for tenants.
In this post, we’ll break down what this new by-law means, who it affects, and how both landlords and tenants can prepare.
What Is the Rental Renovation Licence By-law?
Under the new by-law, Toronto landlords must apply for a Rental Renovation Licence if they plan to evict a tenant using the N13 notice (the Ontario form used to end tenancy for major renovations). This by-law works alongside Ontario’s Landlord and Tenant Board (LTB) eviction process, but adds extra steps for landlords within Toronto city limits.
Who Does This Apply To?
This by-law applies to all residential rental units in Toronto, including:
-
Houses and basement apartments
-
Condominium units being rented out
-
Rental buildings of all sizes
It doesn’t apply to:
-
Hotels/motels
-
Emergency shelters
-
Certain social housing units
-
Co-op student housing or group homes
If a landlord plans renovations that require a tenant to vacate temporarily, this by-law applies—even for just one unit.
What Landlords Must Do
| Step | Description |
| 1. Apply for a Licence | Within 7 days of issuing an N13 notice, submit a Rental Renovation Licence application with building permits, a professional report, and a $700 fee.
|
| 2. Post Tenant Information Notice (TIN) | The City issues a TIN. You must post it on the unit door within 5 days and send a photo to the City.
|
| 3. Provide Tenant Compensation Options | Offer temporary housing or pay the monthly rent-gap if tenant plans to return. If not returning, pay 3 months of rent-gap plus a moving allowance ($1,500 for 1-bedroom or smaller, $2,500 for 2+ bedrooms).
|
| 4. Wait for City Approval | A 14-day tenant review period follows posting. You can only proceed after the licence is granted.
|
| 5. Post the Licence | Display the licence on the unit door during renovations.
|
| 6. Complete Renovations and Notify City | After renovations, confirm the tenant has returned (or been compensated), so the City can close the licence.
|
| 7. Avoid Penalties | Fines of up to $100,000 may apply for non-compliance.
|
What Tenants Should Expect
| Right | What It Means for You |
| Notice & Transparency | You must receive a Tenant Information Notice after the N13 is served. It must be posted on your door within days.
|
| 14-Day Review Period | You’ll have 14 days to review your rights, ask questions, and seek advice before the landlord can proceed.
|
| Choice to Return or Leave | You may choose to return to your unit at the same rent after renovations or opt to leave permanently with compensation.
|
| Compensation Options | If returning: receive temporary housing or monthly rent-gap payments during renovations. If not returning: receive a 3-month rent-gap lump sum plus a moving allowance.
|
| Right to Verify Licence | You can check the City’s public registry to confirm the landlord has obtained a Rental Renovation Licence.
|
| Support Available | Contact 311, the City’s Tenant Support Program, or Federation of Metro Tenants’ Associations for help or to report violations.
|
Why This Matters
This by-law strengthens tenant protections by making sure landlords:
-
Aren’t using renovations as an excuse to remove long-term tenants
-
Have proper plans and permits in place
-
Follow a clear, fair process
For landlords, it adds transparency and ensures renovations are done with the necessary oversight—helping avoid costly penalties or disputes.
Final Thoughts & Resources
The Rental Renovation Licence By-law is a major change in how Toronto handles tenant evictions due to renovations. Whether you’re a landlord planning work or a tenant receiving notice, it’s important to understand your rights and obligations.
🔗 Resources:
-
Call 311 for tenant support
-
Federation of Metro Tenants’ Associations for legal advice
Have questions or need help navigating your next steps? Feel free to reach out—I’m happy to assist.
Cathy | Real Estate Salesperson
📲 Direct: 647-463-8810 📧 Email: cathy.tse@century21.ca
Instagram – Facebook – Linktree – Subscribe for News – Blog – WhatsApp
