Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →Since 31 July 2025, a landlord in Toronto who serves an N13 to renovate must apply to the City for a Rental Renovation Licence within seven days — and pay $700 per unit. The application has to show the work genuinely requires the unit to be empty. If you intend to return, the landlord owes you either temporary housing or monthly compensation covering the gap to market rent, plus moving costs. Penalties for non-compliance run to $100,000.
What changed, and why it exists
An N13 is the provincial form a landlord uses to end a tenancy because the unit needs repairs or renovations so extensive that it has to be vacant. Used honestly it is a legitimate tool. Used dishonestly it became one of the most common ways tenants in Toronto lost affordable homes — the renovation would be minor, cosmetic, or never happen at all, and the unit would come back on the market at a much higher rent.
The City of Toronto’s response was Bylaw 53-2025, in force from 31 July 2025. It does not replace the Landlord and Tenant Board process. It adds a municipal licence on top, and the point of the licence is to make the landlord prove, up front and in writing, that the renovation is real and genuinely requires an empty unit.
What the landlord must do, and by when
The clock is short and it starts when the N13 is served.
- Apply for a Rental Renovation Licence within seven days of issuing the N13.
- Pay $700 per unit with the application.
- Provide documented renovation plans, and a qualified professional’s confirmation that the work requires vacancy.
- Give the tenant the required information, and a tenant accommodation or compensation plan.
What you are owed
The compensation rules split on one question: are you coming back?
If you have told the landlord in writing that you intend to return to the unit after the work, the landlord must provide either comparable temporary accommodation, or monthly payments covering the difference between your existing rent and what similar housing costs while you are out — plus your moving expenses.
If you are not returning, there is compensation and moving costs on a different basis. Either way, this City-level entitlement sits alongside the compensation the provincial rules already require under the Residential Tenancies Act.
The right of first refusal is the part people forget
Under provincial law, if you give the landlord written notice that you intend to move back in after the renovation, you keep the right to return at the same rent the tenancy would have reached — not at the new market rent. Put that notice in writing, keep a copy, and keep your contact details current with the landlord. Losing that paper trail is how people lose the right.
The penalties, and what they signal
The fines attached to this bylaw are unusually large for a municipal rule, which is itself a signal of how seriously the City is treating bad-faith evictions.
| Failure | Penalty |
|---|---|
| Missing the seven-day application deadline | Up to $1,000 |
| Ongoing violation, per day | Up to $10,000 |
| Serious breach — evicting without completing the renovation, or departing from the approved plans | Up to $100,000 |
If you are the landlord
None of this makes a genuine renovation impossible. It makes an ungrounded one expensive. If you own a rental in Toronto and are planning work that truly requires vacancy — structural, plumbing or electrical work that cannot be done around a tenant — build the seven-day licence application into your plan from the start, budget the $700 per unit, and get the professional confirmation before you serve the notice rather than after.
The common failure is sequence. Landlords serve the N13 first because that is the form they know about, then discover the licence requirement in week three. By then the deadline has passed.
Common questions
Does this apply outside Toronto?
No. The Rental Renovation Licence Bylaw is a City of Toronto bylaw. Etobicoke, North York, Scarborough and the rest of the amalgamated city are covered. Mississauga, Brampton and the rest of the 905 are not, though the provincial N13 rules apply everywhere in Ontario.
Do I have to move out when I get an N13?
No. An N13 is a notice, not an eviction order. If you do not leave, the landlord has to apply to the Landlord and Tenant Board and the Board decides. Many tenants leave believing the notice itself compels them, and it does not.
How much compensation does the province require?
The provincial entitlement under an N13 depends on the size of the building and the circumstances. The City compensation described here is in addition to it. Get advice on your specific situation rather than relying on a general figure.
What if the landlord never does the renovation?
That is precisely what the bylaw and the provincial bad-faith provisions are aimed at. The City can pursue penalties, and separately a former tenant can apply to the Landlord and Tenant Board over a bad-faith notice. There are time limits, so do not sit on it.
Where do I check whether a licence was issued?
Ask the landlord for the application number, and contact the City’s licensing service directly. Do not accept a verbal assurance.
Renovating, or being renovated out?
If you own a rental in Toronto and want to do this properly, or you have been served an N13 and want to understand what you are actually looking at, I am happy to talk it through.
Talk it through with me or call or text 437-987-1925.
Related reading
- Every LTB form, explained
- Leasing in Etobicoke and the GTA
- Ontario real estate answers
- Talk to Jatin
- City of Toronto, Rental Renovation Licence Bylaw (Bylaw 53-2025), in force 31 July 2025.
- Residential Tenancies Act, 2006 (Ontario), provisions on N13 notices, compensation and the right of first refusal.
Jatin Dua is Broker of Record and co-founder of RE/MAX Quantum Realty, Brokerage, Unit 101, 799 The Queensway, Etobicoke. Four-plus years in the GTA and more than $100M in sales volume.
This is general information, not legal advice. Tenancy law is fact-specific and the consequences of getting it wrong are serious for both sides. Speak to a lawyer, a legal clinic, or the Landlord and Tenant Board about your own situation.