Understanding Toronto's New Rental Renovation Licence Bylaw: What Landlords Need to Know in 2025
- Sarita Patel
- Aug 4
- 3 min read
What Is the Rental Renovation Licence Bylaw? Key Requirements for Landlords in Toronto Notification and Compensation
Renovation Scope and Proof of Intent 2025 Ontario Rental Law Changes Landlords Should Know
Rent Increase Guidelines & Freeze
New Eviction Protections (Bill 97)
Updated Tenancy Agreements and Notice Periods
How to Apply for a Rental Renovation Licence Final Thoughts: Why Compliance Matters
Toronto landlords, take note: as of July 31, 2025, the City of Toronto has implemented the Rental Renovation Licence Bylaw (By-law 53-2025) to regulate renovations that require tenants to vacate rental units. This new bylaw is part of a broader effort to prevent bad faith renovictions, protect tenants, and maintain Toronto’s affordable housing stock.
What Is the Rental Renovation Licence Bylaw?
Under this bylaw, landlords must now obtain a Rental Renovation Licence before beginning any repair or renovation work that requires a tenant to move out. This applies specifically to evictions initiated under the N13 form of the Residential Tenancies Act (RTA).
This regulation is Toronto’s answer to the increasing number of renovictions happening in the city. It ensures that renovations are legitimate and that tenants are fairly treated throughout the process.
Key Requirements for Landlords in Toronto
Notification and Compensation
To secure a licence, landlords must:
Notify the tenant of the licence application
Provide proof of legitimate renovations
Offer temporary alternative accommodation or
Make monthly rent-gap payments until the tenant can return, or
Provide compensation if the tenant decides not to return
Renovation Scope and Proof of Intent
Landlords are expected to prove that the renovations are necessary and not a strategy to evict tenants unjustly. All applications will undergo review by Toronto Building.
2025 Ontario Rental Law Changes Landlords Should Know
In addition to the new Toronto bylaw, Ontario landlords must follow several province-wide changes introduced in 2025.
Rent Increase Guidelines & Freeze
The maximum allowable rent increase is capped at 2.5% for most private residential rentals.
Some units are exempt (e.g., newly built or occupied after November 15, 2018).
Rent freeze rules apply with specific exceptions.
90 days’ written notice is required for all rent increases.
New Eviction Protections (Bill 97)
Bill 97 introduces stronger protections for tenants:
Mandatory documentation for renovation-related evictions
Stricter tenant relocation support
Expanded notice periods (up to 120 days)
Use of standardized LTB forms
Updated Tenancy Agreements and Notice Periods
All new tenancy agreements must outline detailed rights, maintenance expectations, and deposit terms
Outdated forms can result in dismissed eviction attempts
How to Apply for a Rental Renovation Licence
To apply, landlords must:
Visit the City of Toronto’s official portal
Download and fill out the Rental Renovation Licence Application
Notify tenants
Provide supporting documents (plans, permits, timelines)
Submit the application and pay the applicable fee
For questions or support, contact: Toronto Building Customer Experience
📍 Scarborough Civic Centre, 150 Borough Dr, 3rd Floor
📞 416-397-5330
Why Compliance Matters
With these sweeping changes in place, it's more important than ever for landlords to understand their responsibilities. The new Rental Renovation Licence Bylaw not only protects tenants — it holds landlords to a higher standard of transparency and accountability.
Failing to comply could result in legal consequences and reputational harm.
If you’re unsure how these new laws impact your property renovations, our team at Cedarwood Development Group can help.
Thinking of renovating your rental property in Toronto or the GTA? Trust Cedarwood Development Group to guide you through the compliance process while delivering high-quality renovations.
📞 Call or WhatsApp us: (437) 477-7366
📧 Email: info@cedarwooddevelopment.ca
🌐 Website: cedarwooddevelopment.ca
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