Toronto Rental Renovation Licence: What Landlords Must Do Before Issuing an N13
Last updated: September 7, 2026
Serving an N13 too early can turn a legitimate Toronto renovation into a compliance problem. The City now requires a Rental Renovation Licence when a landlord issues an N13 for repairs or renovations that require vacant possession, and the licence application must be filed within seven days after the N13 is issued. The catch is that the application already requires the approved building permit or other required approvals and a qualified-person report confirming that vacancy is necessary.
That makes the order of operations critical. Before a Toronto landlord starts the N13 process for renovation work, the project should be defined, permit-ready and professionally documented—not just budgeted in broad terms.
Quick Answer
A Toronto landlord does not need the Rental Renovation Licence in hand before serving an N13. If the N13 is for repairs or renovations requiring the tenant to vacate, the landlord must apply for the City licence within seven days after issuing it. The application requires the approved building permit or other required permits, the N13, the fee and a qualified-person report confirming vacant possession is required. Covered renovation work may not proceed until the City issues the licence. City of Toronto landlord guidance
Key Takeaways
Toronto's Rental Renovation Licence applies when an N13 is issued for repairs or renovations that require vacant possession; a separate licence is required for each affected rental unit.
The City licence application is due within seven days after the N13 is issued, not before the N13.
The application must include the approved building permit and other required permits, the N13, a qualified-person report and the applicable City fee.
For the renovation ground under Ontario's Residential Tenancies Act, the work must be extensive enough to require both a building permit and vacant possession.
An N13 is a notice, not an eviction order. Only the Landlord and Tenant Board can issue an eviction order.
Toronto's tenant accommodation, rent-gap and moving-support requirements are separate from Ontario Residential Tenancies Act compensation.
The City's 2026 application fee is $728 per affected unit. The City page does not state a separate HST amount; confirm the total payable when submitting.
A provincial right-of-first-refusal change takes effect September 21, 2026, adding new landlord notification duties for certain tenants who give notice that they intend to return.
Table of Contents
What the Toronto Rental Renovation Licence is
When an N13 renovation notice is legally available
What to have ready before serving an N13
The seven-day City licence deadline
Toronto tenant accommodation and compensation requirements
Ontario N13 compensation and right of first refusal
The September 21, 2026 provincial change
Step-by-step landlord process
Costs and timeline
Toronto versus the rest of the GTA
Common mistakes
When to involve professionals
Frequently asked questions
What Is the Toronto Rental Renovation Licence?
Toronto's Rental Renovation Licence is a municipal licence under Chapter 662 of the Toronto Municipal Code. It was introduced to regulate renovation-related tenant displacement where a landlord serves an N13 because repairs or renovations require the rental unit to be vacant. Enforcement applies to N13 notices issued on or after July 31, 2025. City of Toronto: Rental Renovation Licence Bylaw
The licence is separate from the building permit. A building permit authorizes construction under the Building Code Act and applicable law; the Rental Renovation Licence addresses the municipal requirements connected with the tenant displacement and renovation process. The City states that work subject to Chapter 662 cannot proceed until the licence has been issued. Rental Renovation Licence Application Submission Guide
A licence is required for each rental unit where the landlord issues an N13 for repairs or renovations requiring vacant possession. If the work can be completed without issuing an N13, the City says a Rental Renovation Licence is not required.
Does the bylaw apply to demolition?
No. Toronto's Rental Renovation Licence Bylaw does not apply to demolition. Demolition and certain changes to rental housing can engage a different City process. Toronto also warns that in rental buildings with six or more dwelling units, interior changes that alter the number of units or bedrooms may be treated as "demolition" for the City's rental-housing demolition and replacement rules even if the building itself remains standing. City of Toronto landlord guidance
That distinction should be screened before an owner assumes the Rental Renovation Licence is the correct pathway.
When Can a Landlord Use an N13 for Renovations?
Under section 50 of Ontario's Residential Tenancies Act, 2006, a landlord may give a termination notice for repairs or renovations where the work is so extensive that it requires a building permit and vacant possession of the rental unit. Residential Tenancies Act, 2006
The Landlord and Tenant Board's N13 instructions describe this as the renovation reason where the landlord needs the unit vacant to carry out extensive repairs or renovations. The termination date generally must be at least 120 days after the notice is given and must fall on the last day of a rental period or, for a fixed-term tenancy, no earlier than the last day of the fixed term. Tribunals Ontario Form N13 Instructions
That means an N13 is not a general tool for making a renovation easier. If the work can reasonably be completed while the tenant remains, the renovation ground may not fit the statutory test.
Is an N13 itself an eviction?
No. The N13 is the first step in the process. A tenant does not become lawfully evicted merely because the landlord serves the notice. The LTB has jurisdiction over eviction orders, and Toronto expressly states that a City Rental Renovation Licence does not decide whether the landlord has a legal right to evict. City of Toronto landlord guidance
Tribunals Ontario's instructions also state that a landlord can file an L2 application after giving the N13 and must do so no later than 30 days after the termination date shown in the notice. The Board will not issue an eviction order unless required permits or authorizations have been obtained, subject to the limited situation where they cannot be obtained until the unit is vacant and the landlord can show reasonable steps were taken.
What Should a Toronto Landlord Have Ready Before Serving an N13?
This is where the City's licence sequence changes practical project planning.
Toronto requires the Rental Renovation Licence application within seven days after the N13 is issued. But the City's "Before You Apply" requirements say the landlord must first obtain the necessary building permits and approvals and obtain confirmation from a qualified person that vacant possession is required. The application itself must include those documents. City of Toronto landlord guidance
416 Construction practical guidance: serve only when the project is application-ready
This is a professional planning recommendation, not a statement that Ontario law always requires the permit to be physically issued before the N13 is served.
For a Toronto renovation that will rely on the N13 renovation ground, a safer sequence is to have the following substantially complete before serving the N13:
A defined construction scope and existing-condition review.
Zoning or applicable-law issues identified.
Permit-ready architectural drawings and any required structural or mechanical design.
The required building permit and related approvals issued.
A qualified-person assessment confirming that vacant possession is required.
A realistic construction budget and schedule.
A tenant-support budget that accounts for both Toronto bylaw obligations and Ontario RTA compensation.
A lawyer or licensed paralegal review of the N13 and service strategy where the tenancy facts are complicated.
This sequence reduces the risk of starting the seven-day municipal clock before the documents needed for the licence application are available.
For owners still determining the construction scope, 416 Construction's rental conversion design-build services coordinate feasibility, architectural drawings, engineering, permits and construction. Owners can also review when Toronto renovations need architectural drawings before deciding whether a project is ready for permit submission.
Who can prepare the qualified-person report?
For the standard Chapter 662 process, Toronto says the qualified person must be an architect licensed by the Ontario Association of Architects or a professional engineer licensed by Professional Engineers Ontario. In some specialized situations, the Chief Building Official may accept another qualified professional, such as for work outside an architect's or engineer's scope. The report must confirm that vacant possession is necessary for the work. City of Toronto landlord guidance
A contractor's statement alone should not be treated as a substitute for the City's required declaration.
What Tenant Support Does Toronto Require?
Toronto's municipal tenant-support requirements sit on top of the Ontario RTA framework. Landlords should not budget one system and assume it satisfies the other.
If the tenant intends to return
Toronto requires the landlord to provide either temporary comparable housing at a similar rent or, where the tenant finds their own temporary housing, monthly rent-gap payments calculated under the City's rules. A moving allowance also applies.
If the tenant does not intend to return
Before the licence is issued, the landlord must provide the applicable lump-sum compensation under the City process, including three months of rent-gap payments calculated under the bylaw, plus moving expenses.
Toronto moving allowances
The City's current moving allowance is:
$1,500 for a studio or one-bedroom rental unit.
$2,500 for a rental unit with two or more bedrooms.
The City's tenant guidance confirms that these Chapter 662 supports are separate and distinct from compensation required under the Residential Tenancies Act. City of Toronto Information for Tenants
2026 Toronto rent-gap benchmark
Toronto publishes 2026 market-rent amounts used in its rent-gap framework, with one set for downtown and another for the rest of Toronto, including North York, Etobicoke and Scarborough. Because the calculation depends on the unit, location, current rent and whether the tenant returns, landlords should use the City's current calculator/guidance rather than copying an old example into a budget.
What Compensation Is Required Under Ontario's N13 Rules?
Ontario compensation depends on the size of the residential complex, whether the tenant gives written notice that they intend to return, and whether the work was ordered under an Act.
For repair or renovation notices where the tenant does not give written notice of an intention to return, the current N13 instructions state:
In a complex with five or more units, compensation is generally three months' rent or an acceptable alternative rental unit.
In a complex with fewer than five units, compensation is generally one month's rent or an acceptable alternative rental unit.
Where the tenant does give written notice that they intend to return, the monetary amount is generally limited to the lesser of the applicable one- or three-month amount and the rent for the period the unit is actually under repair or renovation, or an acceptable alternative rental unit may be offered. Compensation is generally due on or before the termination date, subject to the statutory exception for certain work ordered under an Act. Tribunals Ontario Form N13 Instructions
These provincial amounts do not erase Toronto's municipal moving and rent-gap requirements.
What Is the Tenant's Right of First Refusal?
A tenant who receives an N13 for repairs or renovations may have the right to return to the unit when the work is complete. Under the current RTA, the tenant must give the landlord written notice before vacating and keep the landlord informed in writing of address changes. The rent on return cannot be more than the landlord could lawfully have charged if there had been no interruption in the tenancy. Residential Tenancies Act, 2006
This is one reason the project schedule, tenant communications and records should be managed as carefully as the construction itself.
Important Change Effective September 21, 2026
Ontario's current e-Laws consolidation states that amendments to section 53 of the RTA take effect September 21, 2026. For qualifying right-of-first-refusal notices given by tenants on or after the effective date, landlords will have additional written-notification duties, including providing an estimated date when the unit is expected to be ready and keeping the tenant updated. The amended process also gives the tenant a defined period after the unit is ready to exercise the right. Residential Tenancies Act, 2006
Landlords serving N13s around this transition date should confirm the current RTA wording and the latest LTB forms immediately before service.
What about the proposed provincial qualified-person report for N13s?
Ontario's e-Laws page also shows an enacted amendment that would require certain future renovation notices under section 50 to be accompanied by a prescribed qualified-person report. As of September 7, 2026, that section is still shown as coming into force on a day to be named by proclamation; it is not the same September 21 amendment to section 53.
Toronto's municipal process, however, already requires its own qualified-person report for the City Rental Renovation Licence. Do not confuse the current Toronto requirement with the separate provincial amendment that has not yet taken effect.
Step-by-Step Process for a Toronto Landlord Planning an N13 Renovation
Step 1: Confirm the project is really an N13 renovation
Determine whether the proposed work is extensive enough to require a building permit and whether vacant possession is actually necessary. If the work can be completed with the tenant remaining, the City says the Rental Renovation Licence is not required because an N13 is not required for that reason.
Step 2: Screen the property and scope
Confirm the legal use, number of existing units, proposed unit count, zoning, building condition and whether another municipal process could apply. Owners considering a multiplex or unit-count change can review how many rental units may be allowed on a Toronto property.
Step 3: Complete design and engineering
Prepare the architectural, structural, mechanical and other documentation appropriate to the work. 416 Construction provides architectural drawings and permit-ready design as part of coordinated design-build work.
Step 4: Obtain the required permit approvals
Do not treat "submitted" or "under review" as the same as "issued." Permit review can be delayed by incomplete drawings, zoning issues, missing applicable-law approvals or uncoordinated disciplines. See common Toronto building-permit delays.
Step 5: Obtain the qualified-person confirmation
Coordinate the OAA architect or PEO professional engineer who will review the permitted work and complete the City's required declaration that vacant possession is necessary.
Step 6: Review the tenancy-law strategy
Before serving the N13, confirm the termination date, tenancy term, service method, compensation obligations, right-of-first-refusal implications and L2 strategy with a lawyer or licensed paralegal where appropriate. Construction professionals should not be used as substitutes for tenancy-law advice.
Step 7: Serve the N13 correctly
Use the current Tribunals Ontario form and instructions. The N13 cannot be served by simply posting it on the tenant's door; the official instructions list permitted methods of service.
Step 8: Apply for the Toronto licence within seven days
Submit the City application with the required permit documentation, N13, qualified-person report and fee. The application portal currently warns that it cannot be saved mid-process, so prepare the PDFs and information first.
Step 9: Complete the TIN and tenant-support process
Post the City-issued Tenant Information Notice on time, submit the required photo evidence, allow the notification period to run, and complete the applicable accommodation or compensation documents.
Step 10: Wait for the City licence before starting the covered work
The building permit and the Rental Renovation Licence are separate approvals. Having one does not eliminate the need for the other.
Step 11: Manage the construction and return process
Keep permit inspections, scope changes, schedule updates and tenant communications documented. The licence is valid for 12 months; if the project runs longer, the City requires a new licence.
How Much Should a Landlord Budget?
There is no single "renoviction cost" because the legal, municipal and construction obligations depend on the building and tenancy.
Municipal fee
Toronto's published 2026 Rental Renovation Licence application fee is $728 per affected unit. The City fee page does not identify a separate HST amount, so confirm the payable total at submission.
Professional and permit costs
Architectural, engineering, permit and legal costs depend on the work. Rather than inventing a generic range, obtain project-specific quotes that identify whether HST is included or excluded and whether permit fees, engineering, surveys, mechanical design and legal services are separate.
Tenant-support costs
Budget separately for:
Ontario RTA compensation.
Toronto moving allowance.
Toronto rent-gap or temporary-accommodation obligations.
Temporary housing administration where applicable.
Construction delays that extend a returning tenant's displacement.
The tenant-support line can be material on a long renovation, particularly where the gap between the tenant's current rent and the City's applicable market-rent benchmark is large.
How Long Does the Process Take?
The N13 termination date generally requires at least 120 days' notice under Ontario law, but that does not mean the entire project will be ready in 120 days.
Before service, design, engineering, zoning review and permit issuance may take weeks or months depending on scope. After the City licence application is filed, Toronto publishes specific intermediate deadlines—such as the two-business-day TIN issuance target after a complete application and the 14-day tenant notification period—but it does not publish a guaranteed total licence-approval time for every file.
Construction duration depends on scope, inspections, procurement, unforeseen conditions and whether design changes trigger permit revisions.
Planning principle: work backward from a realistic permit-and-construction sequence. Do not choose an N13 date first and then hope the design team catches up.
Does the Toronto Licence Apply in North York, Etobicoke or Scarborough?
Yes. North York, Etobicoke and Scarborough are within the City of Toronto, so Chapter 662 applies to qualifying rental units there just as it does in the former City of Toronto.
The Toronto Rental Renovation Licence does not automatically apply to properties in Mississauga, Oakville, Burlington, Vaughan, Richmond Hill or Pickering. Those properties remain subject to Ontario's Residential Tenancies Act and N13 rules, but owners must check the municipality governing the property for local licensing, permit and rental-housing requirements.
This is a jurisdiction issue, not a branding issue: a Toronto bylaw should not be presented as a GTA-wide rule.
Common Mistakes That Can Derail an N13 Renovation
Serving the N13 before the project is actually ready
The seven-day Toronto licence deadline makes a speculative N13 risky. A permit that is still under review or a missing qualified-person report can create an immediate municipal compliance problem.
Assuming the building permit is the Rental Renovation Licence
They are separate approvals. The building permit regulates the construction; Chapter 662 regulates the municipal rental-renovation licensing process.
Assuming an N13 guarantees vacancy
It does not. The LTB decides eviction applications. The City licence does not decide the landlord's entitlement to an eviction order.
Underbudgeting tenant costs
Toronto's moving and rent-gap obligations are separate from RTA compensation. A construction budget that omits either system is incomplete.
Ignoring the tenant's right to return
A returning tenant's statutory rights affect communication, scheduling and post-construction occupancy.
Changing the scope after the permit and report
The City application guide instructs landlords to describe work consistently with the approved permit. Significant changes can affect the permit, professional opinion, budget and licence process.
Misclassifying a demolition or multi-unit reconfiguration as a renovation
Toronto specifically warns that some changes in larger rental buildings can fall under the rental demolition/replacement rules instead of Chapter 662.
416 Construction Practical Guidance
For a major occupied-rental renovation, treat the tenant process and the construction process as one coordinated project schedule.
Before the N13 is served, create a readiness package containing the approved drawings, permit, qualified-person declaration, detailed scope, construction budget, construction sequence, tenant-support budget and legal review. Assign one person to track statutory, City and permit deadlines. During construction, document inspections and any scope revisions immediately.
416 Construction can coordinate the design and construction side of that process—feasibility, architectural drawings, engineering, permits, budgeting and construction—while the landlord's lawyer or licensed paralegal handles N13/LTB legal advice.
When Should You Contact a Professional?
Contact an architect or PEO engineer when the City qualified-person declaration is required or the design needs professional involvement.
Contact a BCIN-qualified designer, architect or engineer, as appropriate to the project, when permit drawings are required.
Contact a lawyer or licensed paralegal before serving an N13 where there is any uncertainty about the statutory ground, service, termination date, compensation, right of first refusal or LTB application.
Contact Toronto Building where the scope, Chapter 662 applicability, qualified-person eligibility or licence documents are unclear.
Contact a design-build contractor early enough to establish whether the construction scope and schedule actually support the legal timeline.
Conclusion
For a qualifying Toronto renovation, the Rental Renovation Licence is applied for after the N13, but the work needed to make that application complete should be done much earlier. The City requires the licence application within seven days of issuing the N13 and expects the approved permit, N13 and qualified-person report to be ready. No covered renovation work can proceed until the licence is issued.
The strongest project sequence is therefore: define the scope, complete the design and engineering, obtain the required permits, confirm that vacant possession is necessary, review the tenancy-law strategy, serve the N13 correctly, and then submit the City licence application within the seven-day window.
If you are planning a Toronto rental renovation, duplex, triplex or multiplex project, 416 Construction can coordinate architectural design, engineering, building permits, budgeting and construction through one design-build process. Learn about 416 Construction's rental conversion services or call 647-624-8110.
Informational disclaimer: This article provides general construction, municipal-procedure and Ontario tenancy-law information as of September 7, 2026. It is not legal advice and does not determine whether an N13 is valid in a particular tenancy. Forms, legislation and municipal requirements can change. Landlords should obtain advice from a qualified Ontario lawyer or licensed paralegal for tenancy-law decisions and confirm current requirements with the City of Toronto and Tribunals Ontario before acting.
Frequently Asked Questions
Do I need a Toronto Rental Renovation Licence before serving an N13?
No. Toronto requires the licence application within seven days after the N13 is issued for qualifying repairs or renovations. However, the application already requires the approved building permit or other required permits and a qualified-person report. Practically, those documents should be ready before service so the landlord can meet the City's seven-day deadline.
Do I need a building permit before issuing an N13 in Ontario?
Ontario's current N13 renovation ground applies to repairs or renovations so extensive that they require a building permit and vacant possession. The current N13 instructions contemplate indicating whether permits have been or will be obtained. In Toronto, however, the City's licence application due within seven days after the N13 requires the approved permit, making early permit completion especially important.
Is an N13 an eviction order?
No. An N13 is a notice of termination and the first step in the LTB process. If the tenant does not leave voluntarily, only the Landlord and Tenant Board can issue an eviction order. Toronto also states that a Rental Renovation Licence does not determine whether a landlord has a legal right to evict a tenant.
How much is Toronto's Rental Renovation Licence fee in 2026?
Toronto lists the 2026 application fee at $728 per affected rental unit. A separate licence is required for each unit where an N13 is issued for qualifying repairs or renovations. The City page does not state a separate HST amount for this fee, so confirm the total payable at the time of submission.
How long after serving an N13 do I have to apply for the City licence?
Seven days. Toronto states that landlords must apply for the Rental Renovation Licence within seven days after issuing the N13 for repairs or renovations requiring vacancy. Because the online application requires supporting documents and cannot currently be saved partway through, prepare the permit, qualified-person report and N13 PDF in advance.
Can renovation work start as soon as the building permit is issued?
Not where Chapter 662 requires a Rental Renovation Licence. Toronto's submission guide states that the licence is separate from the building permit and that work subject to the bylaw may not proceed until the Rental Renovation Licence is issued. Other permit conditions and inspection requirements still apply as well.
Who can sign Toronto's qualified-person declaration?
Toronto generally requires an architect licensed by the Ontario Association of Architects or a professional engineer licensed by Professional Engineers Ontario to confirm that vacant possession is necessary. For certain specialized work outside those scopes, the Chief Building Official may accept another qualified professional. Confirm unusual cases with Toronto Building before relying on a report.
What compensation does a Toronto tenant receive for an N13 renovation?
Potential obligations come from two systems. The Ontario RTA provides compensation that varies by building size and whether the tenant intends to return. Toronto Chapter 662 separately requires moving expenses and, depending on the tenant's choice, temporary comparable housing, rent-gap payments or a lump-sum amount. The City expressly treats its supports as separate from RTA compensation.
What is the tenant's right of first refusal after an N13 renovation?
A tenant served an N13 for repairs or renovations may preserve a right to return by notifying the landlord in writing before vacating and keeping their address current. If the right is exercised, the returning rent cannot exceed what could lawfully have been charged without the interruption. New landlord-notification requirements begin September 21, 2026 for qualifying notices.
What changes on September 21, 2026?
Amendments to section 53 of Ontario's RTA take effect September 21, 2026 and add landlord notification duties connected with a tenant's right of first refusal, including an estimated readiness date and subsequent updates. Landlords serving notices around the changeover should check the current statute and LTB materials immediately before acting.
Is Ontario's new qualified-person report requirement for N13 notices already in force?
No, not as of September 7, 2026. Ontario's e-Laws page shows that the separate section 50 amendment requiring a prescribed report with certain future renovation notices comes into force on a day to be named. Toronto's municipal Rental Renovation Licence already has its own qualified-person report requirement, so the two rules should not be confused.
Does the Toronto Rental Renovation Licence apply in Mississauga or Oakville?
No. Chapter 662 is a City of Toronto bylaw. It applies in Toronto, including North York, Etobicoke and Scarborough, but not automatically in Mississauga, Oakville, Burlington, Vaughan, Richmond Hill or Pickering. Ontario N13 rules still apply province-wide, and property owners must check the relevant municipality for local requirements.
What if the renovation can be done without the tenant moving out?
Toronto states that if repairs or renovations can be completed without issuing an N13, a Rental Renovation Licence is not required. That can materially change the legal and project strategy. Have the design and construction team define the actual scope and sequencing before assuming vacant possession is necessary.
How long is a Toronto Rental Renovation Licence valid?
The City states that a Rental Renovation Licence is valid for 12 months from the date it is issued. If the renovation is not completed within that period, the landlord must apply for a new licence. Owners should therefore align the licence timeline with realistic procurement, construction and inspection schedules.
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