Effective July 31, 2025, the Rental Renovation Licence Bylaw in Toronto will require landlords to obtain a licence before starting repairs or renovations that involve displacing tenants under the Provincial N13 process. The new bylaw was adopted by Toronto City Council in November 2024, in what it calls an effort to “curb bad faith evictions” and the practice of renovating rental units for the purpose of raising rents.
“Renovictions, where tenants are evicted under the false pretense of necessary renovations so landlords can increase rents significantly or refuse to allow for tenants to return to their homes, are an ongoing issue in Toronto’s rental housing market,” the press release states. “Renovictions disproportionately impact low-income and marginalized communities, exacerbating housing insecurity and leading to the loss of affordable rental housing options.”
The City of Toronto is advising landlords to prepare for the new obligations ahead of any upcoming renovations that will require a tenant to move out.
A Rental Renovation Licence will be required for each unit where an N13 notice is issued, and renovations cannot begin until all the requirements are met. This includes securing building permits, providing proof that the unit must be vacated to complete the work, and submitting a complete licence application. Landlords must also follow timelines, provide formal tenant notifications and submit plans outlining compensation or accommodation if the tenant chooses to return, or rent-gap compensation if the tenant chooses not to return.
“With a growing housing crisis, it is more important than ever to protect tenants and preserve our existing affordable housing,” said Mayor Olivia Chow. “The Rental Renovation Licence Bylaw is one of the important ways the City is leading the way to address the housing crisis and help ensure Torontonians have a safe and secure place to live.”
Instructions for how to apply for the licence will be published in the coming weeks, before the bylaw comes into effect. In the meantime, more information and related resources for both landlords and tenants are available at the following website: https://www.toronto.ca/community-people/housing-shelter/rental-housing-tenant-information/understand-fight-evictions/renovictions-bylaw-development/
