Ontario Renoviction Rules: Toronto and Hamilton Renovation Licence Requirements

Provincial Rules: The N13 Foundation

Before looking at municipal bylaws, the provincial framework sets the floor. Under Section 50 of the Residential Tenancies Act, a landlord who needs vacant possession for demolition, conversion to non-residential use, or extensive repairs requiring a building permit must serve a Form N13 with at least 120 days' notice.

The provincial requirements for an N13:

• All necessary building permits must be obtained before serving the notice
• The termination date must fall on the last day of a rental period or fixed term
• For demolition or conversion in complexes with 5 or more units, 3 months' rent or an acceptable alternative unit is mandatory. For repairs or renovations in complexes with 5 or more units, compensation depends on whether the tenant gives written notice of an intent to return: without that notice, 3 months' rent or an acceptable alternative unit; with it, rent for the lesser of the work period or 3 months
• The tenant has a statutory right of first refusal to return at the same rent once work is complete (Section 53)

These rules apply everywhere in Ontario. But Toronto and Hamilton have layered additional municipal licensing requirements on top, and missing them can result in six-figure fines.

Toronto: Rental Renovation Licence (By-law 53-2025)

Toronto's Rental Renovation Licence By-law took effect on July 31, 2025 under Chapter 662 of the Municipal Code. It applies to any landlord serving an N13 for renovations, repairs, or demolition that require vacant possession in the City of Toronto.

Application timing: The landlord must apply for the Rental Renovation Licence within 7 days of serving the N13 notice on the tenant. Not before, not weeks later — within 7 days.

Application requirements:

• $728 fee per unit (2026 fee)
• A report from a qualified engineer or architect confirming that vacant possession is genuinely required for the work
• Approved building permits
• A tenant accommodation or compensation plan

The tenant compensation plan must provide one of two options:

1. Temporary comparable housing at a similar rent for the duration of the work, or
2. Monthly rent-gap payments covering the difference between the tenant's current rent and market rent for comparable housing, plus a moving allowance ($1,500 for a studio or one-bedroom, $2,500 for two or more bedrooms)

The city reviews the application, inspects the property, and can refuse the licence if the documentation is inadequate or the renovation does not genuinely require the tenant to leave.

Penalties: Operating without a licence — serving an N13 and proceeding with renovations without obtaining the municipal licence — carries fines up to $100,000.

Toronto RentSafeTO: The Separate Registration

RentSafeTO is Toronto's apartment building standards program, and it is distinct from the Rental Renovation Licence. RentSafeTO applies to buildings with 3 or more storeys and 10 or more units. Landlords of qualifying buildings must register, maintain property standards, and submit to city audits and inspections.

RentSafeTO registration is not a prerequisite for serving an N13 in most cases (it applies to larger buildings, not individual rental houses or small multiplexes). But landlords of registered buildings who trigger renovation work should expect RentSafeTO compliance officers to cross-reference the renovation licence application.

Hamilton: Renovation Licence (By-law 24-055)

Hamilton's Renovation Licence By-law took effect on January 1, 2025 and follows a similar structure to Toronto's:

• Licence required for any N13 renovation or demolition displacing a residential tenant
• Application fee, engineer/architect report, and building permits required
• Tenant relocation compensation plan mandatory
• Rent-gap payments and moving allowances parallel to Toronto's structure

The specific fee schedule and document requirements differ from Toronto's, so landlords in Hamilton should check the current bylaw before applying. The principles are the same: you cannot displace a tenant for renovations without the municipal licence, and the licence requires proof that the work genuinely needs vacant possession.

Right of First Refusal: The Provincial Backstop

Both Toronto and Hamilton's bylaws operate alongside the provincial right of first refusal under Section 53 of the RTA. When a landlord terminates a tenancy for repairs or renovations (not demolition or conversion), the tenant has the right to move back in when the work is complete. The returning tenant pays the same rent they would have been paying had the tenancy continued uninterrupted — including any guideline increases that accrued during the renovation period.

The tenant must notify the landlord in writing before vacating that they intend to exercise this right. If the tenant gives that notice and the landlord fails to offer the unit back, the tenant can file a Form T5 application with the LTB for compensation.

What This Means for Small Landlords

If you own a single rental house or a small duplex in Toronto or Hamilton and you need to do major renovation work, you face a layered compliance stack:

1. Obtain the building permit from the municipality
2. Serve the N13 with 120 days' notice (termination date aligned to period end)
3. Apply for the municipal Rental Renovation Licence within 7 days of serving the N13
4. Provide the tenant compensation plan (temporary housing or rent-gap payments plus moving allowance)
5. Pay the provincial N13 compensation required for the applicable ground, unit count, and right-of-first-refusal election
6. Honour the right of first refusal if the tenant elects it

Missing any of these steps exposes you to both provincial penalties (LTB dismissal, bad faith claims under Section 57) and municipal fines (up to $100,000). For a complete breakdown of the N13 process and the municipal requirements, the Ending a Tenancy in Ontario guide maps the full sequence including the Toronto and Hamilton licence steps.

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