Information for Landlords

When A Licence is Required

 A Rental Renovation Licence is only required when a landlord issues an N13 notice – even if the tenant intends to return after the renovations – for the purpose of renovations that require the rental unit to be vacant. If a landlord can complete renovations without requiring a tenant to vacate or without issuing an N13 notice, a licence is not needed. A separate licence is required for each rental unit where an N13 notice has been issued. 

Licensing Requirements

Below are the steps and requirements to apply for a Rental Renovation Licence. 

Step 1: Before You Apply

Before submitting a licence application, landlords must:

• Obtain all necessary building permits and approvals, and 
• Have a qualified person confirm that vacant possession is required. A qualified person must be licensed by the Ontario Association of Architects (OAA) or Professional Engineers Ontario (PEO).

Where a Tenant Chooses to Return:

• The landlord must agree to provide either temporary, comparable housing at similar rents, or 
• Agree to pay monthly rent-gap payments (based on average CMHC market rents for rental units built since 2015) if the tenant finds their own temporary housing. (Refer to the How to Calculate Monthly Rent Assistance information under the “If the Tenant Plans to Return to the Unit” section in the Information for Tenants webpage.)
• In addition to the City’s rent-gap payments, if a temporary suitable unit is not available, landlords must also provide any compensation required under the Residential Tenancies Act (RTA). This includes: 
  • One month’s rent if the building has fewer than five units, or 
  • Three months’ rent if the building has five or more units, or 
  • The rent for the period the unit is being renovated (whichever is less). 
• The tenant must be allowed to return to their unit after renovations at the same rent they paid before leaving. 

Where a Tenant Choose Not to Return:

• The landlord must provide severance compensation equal to three months of rent-gap payments (based on average CMHC market rents for rental units built since 2015). This payment must be made before the licence is issued. 
• In addition to the City’s severance compensation, landlords must also provide any compensation required under the Residential Tenancies Act (RTA). This includes: 
  • One month’s rent if the building has fewer than five units, or 
  • Three months’ rent if the building has five or more units, or 
  • The rent for the period the unit is being renovated (whichever is less). 

In both cases, the plan must include a one-time moving allowance of $1,500 for a studio or one-bedroom unit, or $2,500 for a two-or-more-bedroom unit.   

If a tenant does not agree to move out, the landlord must apply to the Landlord and Tenant Board (LTB) for an L2 eviction order. A Rental Renovation Licence from the City does not give a landlord the legal right to evict a tenant – the eviction must be ordered by the LTB.

Step 2: Submit Your Application (Within Seven Days of Issuing N13 Notice)

• Landlords must submit the following to the City within seven days of issuing the N13 notice to the tenant:  
  • A copy of the building permit and any other permit required to carry out the renovations.
  • A copy of the N13 notice to end tenancy. 
  • A $700 application fee (waived for Multi-Tenant Housing Operators). 
  • A report from a qualified person confirming that vacant possession is required for the renovation. 

Step 3: Tenant Notification

Once the City receives a complete licence application, it will issue a Tenant Information Notice (TIN) to the landlord within two business days. The TIN notifies the tenant that a licence has been applied for and includes information about the application, what to expect under the Rental Renovation Licence Bylaw and where to find resources and supports.

After receiving the TIN, the landlord must: 

• Post the TIN on the door of each affected rental unit within five calendar days of receiving it, and keep it posted until the City issues or refuses a licence.
• Submit a photograph of the posted TIN to the City by email within 14 days of posting. The submission must include the date the TIN was posted and the rental unit number. 

Once the City receives the photograph, a 14-day notification period begins. This period gives tenants time to review the notice, understand their rights and seek support before the City can issue a licence. 

Step 4: Landlord and Tenant Complete Accommodation Plan or Landlord Submits Compensation Plan

Once the 14-day notification period has passed, the landlord must submit: 

• A Declaration Form signed by both the tenant and the landlord indicating whether the tenant intends to return after the renovation. 
• Where the tenant has chosen to return, a Tenant Accommodation Plan or Tenant Compensation Plan. Both plans must include the payment of applicable moving expenses. 
• Where the tenant has chosen not to return, proof of compensation payment if the tenant has indicated they do not wish to return to the unit. This includes a lump-sum equal to three months of rent-gap payments and the moving expenses (i.e., $1,500 or $2,500 depending on unit size).

The City will review the submitted documents and ensure the plan is being implemented, including proof of compensation or housing arrangements where applicable. 

Step 5: Licence Issuance

Once the City approves the documentation, the Rental Renovation Licence is issued. Renovations can only begin once the tenant has vacated the unit, and all requirements under the Residential Tenancies Act (RTA) have been met. The licence does not override the provincial process or reduce the minimum notice period.  

The landlord must follow through on the approved plan for each affected tenant, including providing any required moving allowances. A copy of the licence must be posted on the rental unit’s door or another approved location on the property during renovations. 

Step 6: Submit Additional Documentation (After Licence is Issued)

Once the licence is issued, the landlord must implement the approved Tenant Accommodation Plan or Tenant Compensation Plan. This includes providing temporary housing or starting to pay the monthly rent-gap payments, in addition to paying the required moving expenses. While additional documentation is not required at this stage, the City may monitor compliance through inspections or other enforcement mechanisms. 

Step 7: After Renovations – If the Tenant is Returning

Once renovations are complete, landlords must: 

• Notify the tenant that the unit is ready for re-occupancy. 
• Allow the tenant to move back into the unit.
• Charge the same rent the tenant would have paid if they had never moved out. 

How to Apply

Instructions for how to apply for a Rental Renovation Licence will be available after the bylaw comes into effect on July 31, 2025. This page will be updated with details and a link to the portal once available. Applicants will be required to submit all documents electronically. 

Enforcement and Compliance

Enforcement of the Rental Renovation Licence Bylaw begins on July 31, 2025, and applies only to N13 notices issued on or after that date. The City will use an education-first approach to encourage compliance, followed by progressive enforcement if necessary. 

Toronto Building Inspectors will monitor compliance with the bylaw throughout the renovation process. If non-compliance is found, inspectors may issue orders to comply, impose fines or apply other penalties. Fines may include:

• Up to $1,000 for failure to submit a licence application within seven days of issuing an N13 notice.
• Up to $10,000 per day for continuing offences.
• Up to $100,000 for evicting tenants without completing renovations or failing to follow the approved plan.
• Special fines equal to the economic benefit gained through violations (e.g., renting at a higher rate without offering the unit back to the tenant). 

Licence Renewal and Transfers

A Rental Renovation Licence is valid for 12 months from the date it is issued. If the renovation is not completed within that time, the landlord must apply for a new licence. If the ownership of the rental unit changes during the renovation period, the licence may be transferred to the new landlord, who must notify the City within 14 days of the ownership change. The City may revoke a licence if it was issued in error, based on false or misleading information or if the associated building or change of use permit is revoked.