Published 29 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
A building becomes a retirement home, legally, when it is occupied mainly by people 65 or older, is meant for at least six unrelated residents, and the operator makes at least two care services available. From then on it needs an RHRA licence and must meet the Fire Code’s retrofit rules for retirement homes unless it already meets the Building Code standard in force since 1 January 2014. Those rules require an automatic sprinkler system (NFPA 13, with NFPA 13D and 13R options for smaller buildings), voice communication where a floor is more than 18 metres above grade, monthly fire drills for supervisory staff and an annual drill at the lowest staffing level. Toronto’s zoning by-law defines a retirement home separately from a nursing home, so check the zone before anything else.
When a building legally becomes a retirement home
The Retirement Homes Act, 2010 applies to a residential complex, or part of one, occupied primarily by people 65 or older, occupied or intended for at least six people not related to the operator, where the operator makes at least two care services available. That test matters for property buyers in two ways:
- A seniors building that offers one service, or only rents suites, may not be a retirement home under the Act, which changes both its licensing and its fire code requirements.
- A building you plan to convert becomes a retirement home the moment it meets the test, and must be licensed and meet the retirement home fire rules before residents move in.
The RHRA public register shows, for each licensed home, the number of residents it can accommodate and a statement about sprinklers in residents’ rooms and elsewhere. Read it before a site visit.
Zoning: retirement home is its own use
Toronto Zoning By-law 569-2013 defines a Retirement Home as premises used for semi-independent living accommodation for senior citizens primarily in bed-sitting rooms, with common dining and lounge areas. It separately defines a Nursing Home (living accommodation with regular nursing care and medical care facilities) and a Seniors Community House (non-profit, up to ten seniors), and says a seniors community house is not a retirement home.
So an apartment building or a large house is not automatically zoned for a retirement home, even if residents are seniors. Check the zone’s permitted uses, any site-specific exceptions and whether the existing home is legally non-conforming. Outside Toronto, Mississauga, Brampton, York, Durham and Halton municipalities each have their own definitions. If a municipal licence applies where you are buying, the RHRA asks for it in the acquisition application.
Fire Code Section 9.7: sprinklers and voice communication
The Ontario Fire Code has a retrofit section, 9.7, for buildings containing a care occupancy or a retirement home. The key requirements:
- Sprinklers. An automatic sprinkler system to NFPA 13, in the whole building or, where the building is only partly a retirement home, on those storeys (9.7.5.1). NFPA 13D is allowed in buildings of up to three storeys with sleeping accommodation for up to ten people, and NFPA 13R in buildings up to six storeys.
- Voice communication. Required where a floor area more than 18 metres above grade contains a retirement home (9.7.4.4).
- Exemption. Section 9.7 does not apply to a building that satisfies the Building Code’s fire safety requirements for a retirement home as they read on or after 1 January 2014.
In practice: a purpose-built home designed to the post-2014 code is simpler; an older building or a conversion needs a fire protection engineer to confirm the sprinkler, alarm and separation work, and that cost belongs in your offer.
Fire drills, staffing and the fire safety plan
The Fire Code requires a fire drill for supervisory staff at least monthly in a retirement home (2.8.3.2(2)), plus at least once every 12 months a drill for an approved scenario representing the lowest staffing level (2.8.3.2(6)), to confirm there are enough staff to carry out the fire safety plan. Training must be recorded.
For a buyer, the building and the staffing plan are linked. A layout that needs more staff at night to evacuate safely costs more to run every year. The RHRA asks acquirers for the most recent fire safety plan with local fire department approval. Ask the seller for the approved plan, the drill records and every fire inspection report for the last three years.
Change of use and the Building Code
Converting a building into a retirement home is a change of use. Under section 10 of the Building Code Act you need a permit for a change of use that increases hazard even with no construction, and Toronto says any change of use needs a permit. The Ontario Association of Architects’ occupancy guide places homes for the aged and residential care facilities among institutional occupancies. Your architect should confirm the classification before you price the conversion, because it drives fire separations, exits and sprinklers.
Kitchens, insurance and accessibility
- Food service. If meals are served, the RHRA asks for a food handling certificate and the three most recent public health inspection reports. Check the commercial kitchen, grease management and ventilation.
- Extra expense insurance. A licensee must keep insurance that pays for alternate accommodation and care for at least 120 days if the home becomes unusable (O. Reg. 166/11, s. 5.1). Insurers will price the building’s age, sprinklers and fire record.
- Accessibility. Ontario’s accessibility standards apply to every business with at least one employee; homes with 20 to 49 employees file a compliance report every three years, next due 31 December 2026, and renovated public spaces must meet the public-spaces standard.
Owning the building versus operating the home
The licensee does not have to own the building. Some investors own the real estate and lease it to a licensed operator; others own both. If you are buying the property only, your income depends on the operator keeping its licence, so read the RHRA register for your tenant and put inspection and licence covenants in the lease.
If you finance the purchase, your lender’s security matters too: a lender that enforces its security over a licensee must give the Registrar notice and a management plan within 15 days (s. 46). For the licence and business side of the deal, read my guide to buying a retirement home. Similar premises questions come up in child care centre premises and funeral home premises, and the cap rate calculator helps you test a lease-based purchase.
Where I fit
I help buyers and sellers of commercial and investment property across Toronto and the GTA. On a retirement home property I check zoning and the RHRA register first, bring in fire protection and code consultants early, and structure the offer so the licence and fire work are conditions, not surprises. Book a call or phone 833-330-1925.
Frequently asked questions
What makes a building a retirement home in Ontario?
Under the Retirement Homes Act, 2010 it is a residential complex occupied primarily by people aged 65 or older, intended for at least six residents not related to the operator, where the operator makes at least two care services available. Once it meets that test, it needs an RHRA licence.
Do retirement homes in Ontario need sprinklers?
Yes. Fire Code Section 9.7 requires an automatic sprinkler system in buildings containing a retirement home, to NFPA 13 or, for smaller buildings, NFPA 13D or 13R, unless the building already meets the Building Code’s retirement home fire safety requirements in force since 1 January 2014.
How often are fire drills required in a retirement home?
The Fire Code requires a fire drill for supervisory staff at least monthly in a retirement home, plus at least one drill every 12 months using an approved scenario for the lowest staffing level, to confirm there are enough staff to carry out the fire safety plan.
Is a retirement home the same as a nursing home for zoning?
No. Toronto’s Zoning By-law 569-2013 defines retirement home and nursing home as separate uses, and says a seniors community house is not a retirement home. Check that the zone permits the specific use you intend, and whether any site-specific exception applies to the property.
Do I need a permit to convert a building into a retirement home?
Almost certainly. Ontario’s Building Code Act requires a permit for a change of use that increases hazard, even without construction, and Toronto says any change of use needs a permit. Have an architect confirm the occupancy classification before you price the work.
Can I own a retirement home building without being licensed?
The RHRA licenses the operator of the home, not the landlord. An owner can lease the building to a licensed operator. Your income then depends on the operator’s licence, so check its RHRA register entry and inspection history, and put licence and inspection covenants in the lease.
Sources
- Retirement Homes Act, 2010 — e-Laws — ss. 33, 35, 45, 48, 109
- O. Reg. 166/11 (General) under the Retirement Homes Act — e-Laws — six residents; extra expense insurance; notices
- Retirement Homes Regulatory Authority — How to apply for a licence — acquisition applications
- Ontario Fire Code, O. Reg. 213/07 — e-Laws — fire drills; Section 9.7 retrofit for retirement homes
- City of Toronto — Zoning By-law 569-2013, Chapter 800 definitions — office consolidation, amendments to 30 April 2026
- Building Code Act, 1992 — e-Laws — s. 10, permit for a change of use
- City of Toronto — When do I need a building permit? — change of use needs a permit; zoning always applies
- Ontario Association of Architects — Guide to occupancy types — occupancy groups based on the Ontario Building Code
- Government of Ontario — Accessibility rules for businesses and non-profits — reports due 31 December 2026 for 20+ employees
Related reading
- Buying a retirement home in Ontario
- Funeral home premises in Ontario
- Private school premises in Ontario
- Child care centre premises
- Cap rate calculator
- AI land value estimator
- Book a call with Jatin
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume. Every figure here comes from a published table, regulator or statute linked in the sources, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.