How Renovations Affect Rent for Tenants in Ontario

Renovations are common in Ontario's rental market, and tenants often wonder how these changes might affect their rent or tenancy. This guide breaks down the key things you need to know if your landlord renovates your unit, including how rent increases work, what legal protections you have, and where to turn for help. Whether you're facing an upcoming renovation or have just been notified, understanding your rights is essential.

What Happens When Your Landlord Wants to Renovate?

In Ontario, landlords have the right to make renovations or repairs, but there are rules to protect tenants and limit how much your rent can be increased because of these changes. Major renovations may lead to higher rents or even require you to vacate temporarily, but the law sets out specific procedures landlords must follow.

Temporary Relocation vs. Eviction

If the renovations require you to move out temporarily, your landlord must provide proper notice using the N13: Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it or Convert it to Another Use^[1]. This notice must state:

• The reason for termination (for example, repairs requiring vacancy)
• The termination date (at least 120 days away)
• Options for compensation or the right to return

After the renovations, in many cases, you have the right to return to your unit at the same rent (subject to legal rent guidelines). Always review the N13 notice carefully and consider seeking advice if unsure.

Can Your Landlord Raise the Rent After Renovating?

Ontario law controls rent increases tightly. In most cases, landlords can only raise the rent by the annually set guideline. However, they may apply to the Landlord and Tenant Board (LTB) for approval to increase rent above the guideline for specific "capital expenditures" or major repairs.

Here are the main scenarios you might face:

• Renovations that don't require you to move: Rent can't go up right away; increases typically follow the usual rules. See Understanding Rent Increases: What Tenants Need to Know for a breakdown on notice periods and limits.
• Above Guideline Rent Increase (AGI): Landlords may apply for this if renovations qualify under the law. Tenants will be notified and can dispute the application at the LTB.

If you've received notice of a rent increase due to renovations, ask for written documentation and ensure the LTB has approved it.

Your Rights During Renovations

By law, your landlord must minimize disruption and protect your health and safety during any work. If repairs or upgrades create unsafe conditions—especially issues like mold, dust, or hazardous materials—you can take action to protect yourself.

For related concerns, see Health and Safety Issues Every Tenant Should Know When Renting.

Steps If You Receive an N13 Notice

• Review the notice for accuracy and the legal timeline (120+ days)
• Consider if you want to exercise your "right of first refusal" (first right to move back after the work)
• Contact the LTB or tenant advocacy groups for guidance
• If you disagree with the eviction or terms, you can file a T5: Tenant Application - Bad Faith Notice if you believe the notice was issued in bad faith (see below for details)

Official Forms and How to Use Them

• N13: Notice to End Tenancy
  Use: Landlords must give this notice when seeking to evict for major repairs or demolition.
  View the N13 form (PDF)
• T5: Tenant Application – Landlord Gave a Notice of Termination in Bad Faith
  Use: If you believe your landlord used renovations as an excuse to evict you unfairly, you can submit this form to the LTB.
  View the T5 application form (PDF)

You have the right to return to your rental unit at the same rent if your landlord renovates and you are served an N13 notice, as long as you inform your landlord in writing before you move out.

About the Landlord and Tenant Board

The Landlord and Tenant Board (LTB) of Ontario resolves disputes and oversees rent increases due to renovations. You can file applications, dispute AGI increases, or seek information directly from the Board.

Relevant Laws

Ontario tenants and landlords are governed by the Residential Tenancies Act, 2006^[2]. This law covers everything from notice requirements to allowable rent increases. For more, see Tenant Rights in Ontario.

FAQs: Renovations and Rent in Ontario

1. Can my landlord evict me just to renovate?
   Landlords may only end a tenancy for substantial renovations that cannot be completed with you living there. You must receive a proper N13 notice and usually have the right to return to your unit when work is done.
2. How much notice does my landlord have to give?
   The law requires at least 120 days' notice for major renovations or demolition with the N13 form.
3. Can my rent be increased right after renovations?
   No. Standard rent guidelines still apply unless the landlord is approved by the LTB for an above-guideline rent increase (AGI).
4. What should I do if my landlord doesn't follow the rules?
   You can file an application with the LTB, including the T5 form if you believe the notice was given in bad faith.
5. Where can I search for a new rental if I can't return?
   Affordable homes for rent in Canada are listed at Houseme, helping you find options across Ontario and beyond.

Conclusion: Key Takeaways for Ontario Tenants

• Landlords must follow the law and proper notice procedures for renovations that affect your tenancy or rent.
• You have the right to return to your unit or refuse unlawful rent increases.
• Resources are available if you need help navigating notices, forms, or rent disputes related to renovations in Ontario.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB) – file forms, get guidance, and review legislation and rent rules
• Ontario Tenants Rights – provincial tenant advocacy and legal information
• Tenant Rights in Ontario – learn your legal protections

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1. Ontario N13 notice forms and instructions (LTB)
2. Residential Tenancies Act, 2006

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