Hey everyone — heads up, Toronto’s new renoviction rules kick in on July 31, 2025, revolving around Form N13 evictions and a required Rental Renovation Licence from the City. Here’s how it works:
📅 Key Details:
- Effective July 31, 2025: If you’re a landlord in Toronto issuing an N13 notice (that’s the provincial eviction under RTA s. 50 for demolition, conversion, or major renovations needing the unit vacant), you must obtain a Rental Renovation Licence from the City first.
🏗️ Licence Application Steps (within 7 days of serving N13):
- Building permits must already be secured.
- Provide a qualified professional’s report (engineer or architect) confirming that vacant possession is genuinely needed.
- N13 notice must be served to the tenant.
- Post a Tenant Information Notice in the building—letting people know about the licence application and where to get help.
- Submit a Tenant Accommodation or Compensation Plan, including:
- Offer comparable temporary housing at a similar rent, if tenant wants to return, or
- A monthly rent-gap payment if tenant finds their own place,
- Moving allowance: $1,500 for a studio/1‑bed; $2,500 for 2+‑bed units (adjusted annually with cost-of-living if updated by the City).
- Licence fee: $700 per unit (often waived for large multi-unit operators).
After the above documents are accepted—and the 14‑day city notification window expires—the licence is issued. Landlords must post it visibly during the renovation.
💵 What Tenants Are Entitled To:
- If tenant chooses to return after work finishes: the landlord must hold the unit at the same rent, and either offer temporary comparable housing or monthly rent-gap payments.
- If tenant opts not to return: the landlord must pay a lump sum equal to three months of rent-gap compensation—that’s the difference between current rent and post-2015 average market rent for similar units.
⚖️ Enforcement & Penalties:
- Fines up to $1,000 if the licence application is late.
- Up to $10,000 per day for persistent violations.
- For fraudulent renovictions or non‑compliance with approved plans: penalties can reach up to $100,000 plus financial benefit disgorgement.
Tenants can check a public registry to confirm whether a licence was issued and can report violations to the City.
📋 Summary Table:
| Step | Landlord Must… | Tenant Entitlement |
|---|---|---|
| Serve N13 | Apply for licence within 7 days | Right to see info notice |
| Provide permits & professional report | Submit compensation/accommodation plan | Temporary housing or rent-gap payments |
| Pay $700 fee | Post licence during renovation | Right to return at same rent |
| 3‑month rent‑gap severance if not returning |
This by-law builds on protections already in the Ontario RTA (s. 50 and Bill 97 amendments) which require a professional report for vacant possession and a right to return or compensation, but Toronto has now layered in municipal licensing, stronger oversight, and heftier enforcement tools.
If you’re a landlord or property manager thinking of using an N13 after July 31, make sure you follow this city process to the T. If you’re a tenant who’s just received an N13, check the licence registry and ask for all the compensation you’re owed.
If you’d like more detailed guidance and advice tailored to your situation, feel free to send me a direct message or book a free strategy session here: https://meetings.hubspot.com/prouillard/property-management. Myself and my in‑house Paralegal team would be happy to provide you with free advice and guidance.
