Starting July 31, 2025, owners and operators (i.e. landlords) must obtain a Rental Renovation Licence before starting repairs or renovations that require tenants to move out of their rental units.

Pease note: This webpage does not cover the eviction process set out in the Provincial Residential Tenancies Act (RTA), which is separate and distinct from the City’s Rental Renovation Licence Bylaw and falls outside the City’s jurisdiction. Tenants are encouraged to connect with support services to understand their rights the RTA, and to seek independent legal advice if needed.

Landlords must apply for a Rental Renovation Licence to undertake renovations or repairs that require tenants to move out of a rental unit where an N13 eviction notice is issued.

If The Tenant Chooses to Return to The Unit After The Renovations or Repairs Are Complete, The Landlord Must:

  • Provide a declaration form signed by both landlord and tenant that the tenant intends to return to the unit;
  • Submit either:
    • an accommodation plan setting out arrangements for the tenant’s temporary alternate accommodation during the period of repair or renovation that are acceptable to the tenant; or 
    • a compensation plan setting out arrangements for paying monthly rent-gap payments to the tenant (based on average market rents in the area) for the length of the repairs or renovations; and 
  • Provide applicable compensation for moving expenses. 

If The Tenant Chooses Not to Return to The Unit Following The Completion of The Renovation or Repairs, The Landlord Must:

  • Provide a declaration form signed by both landlord and tenant confirming the tenant does not intend to return to the unit; 
  • Provide the tenant with a one-time, lump sum compensation payment equal to three months of rent-gap payments (based on market rents for rental units built since 2015); and
  • Provide applicable compensation for moving expenses.

These supports must be documented in writing and provided to the City before a licence may be issued to the landlord.

The Rental Renovation Licence Bylaw does not override or delay the Landlord and Tenant Board (LTB) process. It is independent of this process. Tenants are encouraged to get more information on their rights and the process at the LTB from the Toronto Tenant Support Program providers listed below.

The time required to review and issue a Rental Renovation Licence can vary depending on the situation. During this period, tenants should consider seeking support services to better understand their rights, clarify any agreements and explore their options.

    An N13 notice is a formal step in the provincial eviction process under the RTA for repairs or renovations that are so extensive that they require a building permit and vacant possession of the tenant’s rental unit. The Rental Renovation Licence Bylaw does not address tenant evictions, as this matter is beyond the City’s jurisdiction. Only the Landlord and Tenant Board may issue an eviction order.

    If a landlord issues an N13 notice and plans to carry out renovations or repairs that require tenants to move out, they must: 

    • Obtain all necessary building permits and approvals.
    • Apply for a Rental Renovation Licence from the City.
    • Notify the tenant that they have applied for a Rental Renovation Licence by posting a Tenant Information Notice.
    • Ask the tenant to confirm, in writing, whether they intend to return to their unit after renovations.
    • If the tenant intends to return to the rental unit following the repairs or renovations, landlords must work with their tenant to complete and sign a Tenant Accommodation Plan outlining temporary housing, or provide the City with a Tenant Compensation Plan confirming that monthly compensation will be paid to the tenant as required by the bylaw.
    • If the tenant does not intend to return to the rental unit, landlords must provide the City with proof of payment of compensation to the tenant as required by the bylaw.

    These steps must happen before the City may issue the licence.

    Notices Tenants Should See

    As part of the licence application process, the City will issue a Tenant Information Notice (TIN) to the landlord. The purpose of the TIN is to notify tenants that a licence has been applied for and provide information about the process and where to find resources and available supports. The landlord must:

    • Post the TIN on the door of the unit within five days of receiving it from the City. Once the TIN is posted, a 14-day notification period begins. During this time, the tenant can review their rights, seek legal advice and connect with tenant support services before a licence is issued.
    • Submit a photo of the posted TIN to the City within 14 days of posting it on the door.
    • Keep the TIN posted until the licence is issued or refused. 

    Once a licence is issued, the landlord must post a copy of the Rental Renovation Licence on the unit door, and the licence shall remain posted until the repairs or renovations have been completed.

      If a tenant intends to return to the unit, the landlord has two options for supporting the tenant during the period of the repairs or renovations:

      Option 1: Temporary Housing

      The landlord is required to submit a tenant accommodation plan which must include arrangements for the tenant’s temporary alternate accommodation during the period of repair or renovation that are acceptable to the tenant. Both landlord and tenant have to agree in writing to the tenant accommodation plan.

      Option 2: Compensation

      Alternatively, the landlord may opt to pay the tenant compensation instead of providing temporary alternate housing. This compensation covers the difference between the current rent and the average market rent in the area, based on the number of bedrooms in the rental unit. The landlord must pay this amount every month for the duration of the renovation.

      Tenant Accommodation Plan or Tenant Compensation Plan

      As part of the Rental Renovation Licence process, the landlord must provide the tenant with a Declaration Form confirming whether the tenant intends to return to the unit after renovations. 

      Based on this decision, the landlord must complete one of the following plans:

      • If the tenant chooses to return and accept a temporary rental unit provided by the landlord, the tenant will be provided a Tenant Accommodation Plan. This plan outlines the terms of the temporary housing arrangement and must be signed by both the landlord and the tenant.
      • If the tenant chooses to return but prefers to find their own temporary housing, the tenant will be provided a Tenant Compensation Plan. It documents the rent-gap payment arrangement, as outlined above, and must be signed by both parties. 

      How to Calculate Monthly Rent Assistance

      Step 1: Find the applicable zone

      Toronto is divided into two market rent zones: 

      • Downtown area
      • Rest of Toronto, including Etobicoke, North York, Scarborough, York and East York. 

      Use the Rent Assistance Zone Finder Map to determine your rent assistance zone if needed.

      Find Your Rent Assistance Zone

      Step 2: Find the average market rent for the unit type

      Zone Studio One Bedroom Two Bedrooms Three Bedroom and More
      Downtown zone, marked with blue 'A' on the map $2,154 $2,517 $3,296 $4,244
      Rest of Toronto zone (Etobicoke, North York, Scarborough, York and East York), marked with red 'B' on the map $2,154 $2,459 $3,156 $3,273

       

      If you rent a room in a multi-tenant house, the studio market rent will apply.  

      The market rent levels shown in the table reflect the most recent data from the Canada Mortgage and Housing Corporation (CMHC) for rental units built since 2015. These figures are updated annually, with new rates published each winter. (The above noted rates are current to July 2025.)

      Step 3: Subtract current rent from the market rent

      The result is the amount the landlord must pay you each month while the tenant is temporarily relocated. This amount is in addition to any compensation required under the Residential Tenancies Act.

      Example: If you currently pay $1,500 for a one-bedroom unit in North York, and the market rent is $2,459, your landlord must pay you $959 per month for the duration of the renovations.

      Moving Expenses

      Your landlord must also provide a one-time moving expense, regardless of whether you return to the rental unit or not: 

      • $1,500 for a studio or one-bedroom unit.
      • $2,500 for a two-or-more-bedroom unit. 

        One-Time Compensation

        If the tenant chooses not to return after renovations or repairs, the landlord must provide a one-time lump-sum rent-gap payment as financial compensation. This payment is separate and distinct from any compensation required under the Residential Tenancies Act.

        To calculate the one-time lump-sum rent-gap payment:

        1. Find your zone (Downtown or Rest of Toronto).
        2. Find the average market rent for your unit type using the City’s market rent table.
        3. Subtract your current rent from the average market rent.
        4. Multiply the result by three to get the lump-sum payment.

        This amount is paid once and is separate and distinct from any compensation required under the Residential Tenancies Act.

        Moving Expenses

        The landlord must also provide a one-time moving expense, regardless of whether the tenant returns or not:

        • $1,500 for a studio or one-bedroom unit.
        • $2,500 for a two-or-more-bedroom unit.

        If you suspect your landlord is not following the Rental Renovation Licence Bylaw, you can report it to the City by calling 311. The City uses an education-first approach but may take enforcement actions – including inspections and the issuance of orders to comply – if violations are found.

        The Public Registry, available through the Building Permit Application & Inspection Status, is a City of Toronto database that lists all issued Rental Renovation Licences and building permit information. It is designed to promote transparency and help tenants stay informed about renovations taking place in rental buildings with tenants. 

        Tenants can verify whether their landlord has obtained the necessary licence. The registry displays the property address, licence status and relevant dates. This information will be available within 24 to 48 hours of an application being accepted. 

        Tenants can also use this tool to track the status of the building permit associated with their rental unit. 

        Explore tools and information from the City of Toronto to help you understand your rights and stay informed: