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

The N13 is a provincial notice under the Residential Tenancies Act. The licence is a separate municipal requirement, and the City says landlords must obtain it before starting repairs or renovations that require tenants to move out.

[Cite: City of Toronto, "Renovictions" page; Toronto, Planning and Housing Committee background file on the Rental Renovation Licence By-law (2024)]

A landlord can therefore be compliant with the provincial notice rules and still be in breach of the by-law. The two sets of rules run side by side.

Reports on the by-law say the landlord must apply for the licence within 7 days of serving the N13 notice. The City staff report describes the same 7-day window, and says a building permit has to be in place first.

[Cite: Toronto, Planning and Housing Committee background file (2024); Mondaq, "Toronto's New Rental Renovation License Bylaw"; CBC News, "Renovictions bylaw comes into effect July 31"]

Not every secondary source frames the sequence the same way. One describes an N13 being obtained before the City application and another says the licence is needed before serving notice. Landlords should confirm the sequence against the City's current application page before serving anything.

The application fee is $700 per rental unit, and the staff report adds that it is plus HST and adjusted yearly for inflation. Reporting on the by-law also says the landlord must submit building permits and a verification from a licensed architect or professional engineer that vacant possession is necessary for the work.

[Cite: Toronto, Planning and Housing Committee background file (2024); CBC News; Storeys, "Toronto's Renoviction Bylaw Goes Into Effect Today"]

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.

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.

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.

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.

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.

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.