Toronto’s New Rental Renovation License Bylaw

By David Young

Following up on my colleague Mira’s article from this past January 2025 about the City of Toronto’s efforts to crack down on bad faith evictions and protect tenants from so-called "renovictions," the city has introduced it’s new Rental Renovation Bylaw, coming into effect on July 31^st, 2025.

This new bylaw creates stricter requirements for landlords who plan to renovate rental units in a way that forces tenants to temporarily vacate. Here's what both tenants and landlords need to know about what is required to obtain a licence.

Key Changes Under the New Bylaw

Landlords can no longer simply serve an N13 notice and begin renovations. To proceed with a major renovation that requires a unit to be vacated, landlords must now obtain a license from the city and follow a detailed process.

Some key changes include:

• Within 7 days of serving a tenant with an N13 notice, landlords must submit the following to the City of Toronto:
• A copy of the building permit and any other necessary permits for the renovation
• A copy of the N13 notice served to the tenant
• A non-refundable application fee of $700
• A report from a qualified professional confirming that vacant possession is necessary to complete the renovation
• Landlords must provide tenants with either an accommodation plan or compensation, which includes coverage for moving expenses.
• Tenants have the right to return to their unit after the renovation is complete. The landlord must notify them when the unit is ready for reoccupancy, and the rent must remain the same as if the tenant had never moved out.

Failure to comply with these new requirements can result in penalties ranging from $1,000 for not failing to submit license applications within 7 days of the N13 notice, up to $100,000 for unfairly evicting tenants without completing renovations or failing to follow the approved plan.

What This Means for You

• Landlords: Stay fully informed and ensure compliance with the updated regulations to avoid significant fines or legal complications. It's crucial to follow the correct procedures. New requirements have been introduced to demonstrate that planned renovations truly necessitate the tenant vacating the unit. Make sure you understand and meet all documentation and procedural standards.
• Tenants: Know your rights and be aware of the responsibilities landlords now carry. If you receive an N13 notice, verify that your landlord is adhering to the new bylaw and following proper legal steps. The City of Toronto has launched a public education campaign to help tenants better understand their rights and protections.

For more information, visit the City of Toronto's website.

If you’re unsure how this bylaw affects your situation, whether as a landlord or a tenant, our experienced legal team at SorbaraLAW is here to help. Contact us today for guidance on navigating rental renovations and renoviction concerns.