Ontario N13 Renovation Notice: Building Permits, Tenant Rights, and Municipal Licences

When the N13 Applies

Form N13 is the prescribed notice under Section 50 of the Residential Tenancies Act, 2006 for three situations where the landlord needs vacant possession (rules as at October 2026):

1. Demolition of the rental unit
2. Conversion to a non-residential use
3. Extensive repairs or renovations that require a building permit and vacant possession. For notices given on or after July 1, 2026, the N13 must also include a report from a qualified person stating that vacant possession is required.

If the work doesn't require a building permit, the N13 is not available. Cosmetic upgrades — paint, flooring, fixtures — don't qualify unless they're part of a larger project that triggers a municipal building permit.

The 120-Day Notice Period

The minimum notice period is 120 days, and the termination date must fall on the last day of a rental period or the end of a fixed-term lease. For a monthly tenancy where rent is due on the 1st:

• Serve in person on October 1
• Count 120 days: January 29
• Adjust to the last day of the rental period: January 31
• Termination date: January 31, 2027

If served by mail, add 5 deemed-service days before starting the 120-day count.

Qualified-Person Report and Building Permits

For extensive repairs or renovations, the N13 must be accompanied by a report from a qualified person stating that the work requires vacant possession. You do not have to have every permit in hand before serving the N13. By the L2 hearing, you must have obtained required permits and authorizations or show that you have taken reasonable steps to obtain them; the Board considers, but is not bound by, the report.

This means planning the renovation timeline well in advance. Municipal permit processing times vary widely — Toronto's building department, for instance, has its own backlog. The 120-day clock doesn't start until the notice is served.

Right of First Refusal

For repairs or renovations (not demolition or full conversion), Section 53 of the RTA gives the tenant the right of first refusal to reoccupy the unit when the work is complete. The tenant returns at the same rent they would have been paying had the tenancy continued uninterrupted — not at market rent.

The tenant must notify the landlord in writing before vacating that they intend to exercise this right. Once they do, the landlord must offer the unit back to them before offering it to anyone else.

Provincial Compensation Requirements

If the work was not ordered by a government authority, provincial compensation depends on the work, the complex size, and whether the tenant gives written notice that they will exercise the right of first refusal:

• Demolition or conversion: The landlord must pay 3 months' rent in a complex with 5 or more units, or 1 month's rent in a smaller complex, or provide an alternative unit acceptable to the tenant.
• Repairs or renovations, tenant does not exercise the right of first refusal: The same 3-month or 1-month compensation applies, based on whether the complex has 5 or more units.
• Repairs or renovations, tenant exercises the right of first refusal: Compensation is rent for the period of work, capped at 3 months in a complex with 5 or more units or 1 month in a smaller complex.
• No compensation is required if the landlord was ordered to do the work.

The tenant must give written notice of their intent to exercise the right of first refusal before vacating. For notices given on or after September 21, 2026, the landlord must also provide updated written estimates of when the unit will be ready and give the tenant at least 60 days after it is ready to exercise the right.

Toronto and Hamilton Municipal Renovation Licences

Provincial rules are only the floor. If your rental property is in Toronto or Hamilton, municipal renoviction bylaws add a second layer of requirements.

Toronto — Rental Renovation Licence (By-law 53-2025, effective July 31, 2025). It applies to N13 notices for repairs or renovations that require the tenant to vacate, not to every N13 ground:

• Apply for a licence from the City within 7 days of serving the N13
• Fee: $728 per unit from January 1, 2026
• Submit a report from a qualified engineer or architect confirming vacant possession is required, plus building permit documentation
• Provide the tenant with either temporary comparable housing at similar rent, or monthly rent-gap payments plus a moving allowance ($1,500 for studio/1-bedroom, $2,500 for 2+ bedrooms)
• Operating without a licence: municipal fines up to $100,000

Hamilton — Renovation Licence (By-law 24-055, effective January 1, 2025): Similar licensing, rent-gap compensation, and tenant relocation obligations. The specific fee structure and documentation requirements differ from Toronto's, so check Hamilton's bylaw directly.

Other Ontario municipalities may adopt similar frameworks. Always verify local bylaw requirements for the specific municipality where the property is located.

The Renoviction Risk

"Renoviction" — using a renovation notice to remove tenants and re-lease at higher rents — is the reason these rules exist. The LTB scrutinizes N13 applications closely. If the Board suspects the renovation claim is pretextual (the work doesn't genuinely require vacant possession, or the landlord has no real intent to renovate), the application will be dismissed.

For an N13 notice given in bad faith, the LTB may order compensation including rent differential, moving costs, general damages, and an administrative fine of up to $50,000.

If you're planning renovations that require an N13 in Ontario, our Ending a Tenancy in Ontario guide covers the building permit sequence, the municipal licence obligations for Toronto and Hamilton, and the tenant's right-of-first-refusal process.

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