Toronto Rental Renovation Licence By-law: What Landlords Must Do and Pay When an N13 Notice Is Served

Once the City has a complete application, the tenant must be notified of the landlord's intentions. The building permit and professional verification are the documents that take longest to assemble, so the 7-day window is tight if they are not already in hand.

4. The accommodation or rent-gap choice

The landlord has to provide either a temporary comparable housing unit at a similar rent, or monthly rent-gap payments to the tenant who finds their own place. The City's overview describes this as agreeing on arrangements for temporary alternate accommodation, or paying monthly rent-gap payments if the tenant is returning.

[Cite: City of Toronto, "Renovictions" page; CBC News]

The staff report defined the rent gap as the difference between the tenant's current rent and the average market rent for comparably sized units completed since 2015, in the same CMHC zone or citywide, whichever is greater. That is the proposed formula, and the final by-law's wording should be checked before a payment is calculated.

5. Moving allowance and compensation for tenants who do not return

A moving allowance of $1,500 applies to a studio or one-bedroom and $2,500 to units with two or more bedrooms. A tenant who decides not to return receives compensation equal to three months of rent-gap payments.

[Cite: CBC News; Toronto, Planning and Housing Committee background file (2024)]

The staff report said the moving allowances would be adjusted annually for inflation. A landlord preparing a figure should check the City's current published amounts rather than rely on the 2025 numbers.

6. The tenant's right to return

Tenants who wish to return keep a right of first refusal to the renovated unit. Reporting on the by-law says the rent must remain the same as if the tenant had never moved out.

[Cite: Mondaq, "Toronto's New Rental Renovation License Bylaw"; Storeys, "Toronto's Renoviction Bylaw Goes Into Effect Today"]

This is the provision that changes the economics of a renovation eviction most. A landlord cannot treat the renovated unit as a vacant unit at market rent when the returning tenant is entitled to the old rent.

7. Enforcement and penalties

The City's building department reviews renovation permits. Reported penalties are $1,000 for missing the 7-day application deadline, $10,000 per day for continuing offences and up to $100,000 for serious violations, such as an unauthorized eviction or a failure to follow an approved plan.

[Cite: CBC News; Mondaq; FirstService Residential, "Toronto renovictions by-law: a 2026 guide"]

The staff report also described a progressive enforcement approach, starting with education before penalties. That does not change the exposure for an obvious bad-faith eviction.

8. What property managers should do now

Treat the 7-day window as the planning constraint. Have the building permit, the architect or engineer verification and the $700 fee per unit ready before an N13 is served, and check the sequence on the City's application page first.

Prepare the tenant package at the same time: the accommodation or rent-gap offer, the moving allowance and a written statement of the right to return at the same rent. A landlord who offers these early is in a stronger position if the City asks questions later.