Ontario Landlords: New Right of First Refusal Rules for Renovation Evictions

by | May 23, 2026 | Landlord Tenant, Residential Landlord Ontario

Bill 97 Is Finally Here — Well, Almost. Part IV

On June 8, 2023, Bill 97, the Helping Homebuyers, Protecting Tenants Act, 2023 [1] (“Bill 97”) received Royal Assent. Bill 97 amended the Residential Tenancies Act, 2006 [2] (“RTA”) on various issues. But none of those amendments came into force in 2023. The province did not even announce a start date. The proposed changes did not become law. Landlords waited without a clear timeline. Until now.

September 21, 2026 is the date on which some — but not all — items within Bill 97 will change the RTA. In this article, the landlord’s legal team at Gobin & Leyenson LLP identifies one of the changes that takes effect on September 21, 2026, and explains how it affects residential landlords in Ontario. Follow us on social media to learn more and empower yourself as a residential landlord to make informed decisions about your rental investment property. Read our other articles HERE.

Professional legal-themed graphic in deep royal blue, gold, and white for Gobin & Leyenson LLP. The image features an Ontario Landlord and Tenant Board N13 form on a clipboard with the heading “Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it or Convert it to Another Use.” Beside the form are gold-accented legal books labeled “Residential Tenancies Act” and “Landlord and Tenant Board,” along with a black and gold pen. The right side contains gold calendar icons referencing July 1, 2026 and September 21, 2026 legislative changes, a notice that not all provisions are being brought into force, references to Bill 97 and Bill 60, and a “Follow Our Blog” section. The bottom displays the G&L logo with the text “Gobin & Leyenson LLP – Landlord’s Legal Team” and gold outline illustrations of residential buildings and houses.

ONTARIO LANDLORDS — IMPORTANT CHANGES ARE COMING.
New rules affecting N13 renovation, repair, demolition, and conversion notices are coming into force.
Do you understand:
• The Right of First Refusal?
• New landlord obligations?
• Potential risks at the LTB?
Procedural mistakes can be costly.
Stay informed before serving notices or starting renovation-related proceedings.

What Landlords Can Currently Do: Renovation Evictions

Landlords may terminate a tenancy if a rental unit requires repairs or renovations so extensive that a building permit is required and the rental property must be vacant.[1] The N13 notice must give the tenant at least 120 days’ notice. The termination date must fall on the last day of the tenancy. For fixed-term tenancies, the termination date must be the end of the fixed term.[2]

The tenant holds the right of “first refusal.” Upon receiving an N13, the tenant may advise the landlord of their intention to move back into the rental unit once the work is done. Upon returning, all pre-renovation terms and conditions of the tenancy — including the rent amount[3] — must remain the same. To exercise this right, the tenant must provide the landlord with written notice of their intention before they vacate. The tenant must also notify the landlord, in writing, of any change of address.[4]

What Is Changing for Landlords on September 21, 2026

As of September 21, 2026, Bill 97, s. 3 amends s. 54 of the RTA on the right of first refusal. The N13 notice requirements, the 120-day notice period, and the required termination date all remain in effect. The tenant’s obligation to give the landlord written notice of their intention to return also stays the same. However, once the landlord receives that written notice from the tenant, the landlord must now:[5]

  • Promptly notify the tenant in writing of the estimated date the rental unit will be ready for occupancy, once the repairs or renovations are complete;
  • If the estimated completion date changes, promptly notify the tenant in writing of the new estimated date on which the work will be complete and the unit will be available;
  • Once the rental unit becomes available, promptly notify the tenant in writing that it is ready for occupancy; and
  • Give the tenant at least 60 calendar days, after receiving that final notice, to decide whether to move back in or to decline to return.

Impact on the Landlords

This change adds new written notice duties at multiple stages of the renovation process. If the tenant chooses not to return, the landlord cannot collect rent during the 60-day decision window. After the tenant decides, the landlord still needs time to advertise the unit, screen new applicants, and re-rent — a process that typically takes at least another 30 days. So, while the landlord may benefit from a higher rent with a new tenant, whether that increase offsets a 60–90-day vacancy period will depend on the rental market at the time.

Other Landlord Requirements

These changes affect the residential landlord’s obligations under the RTA. However, local municipal by-laws may add further duties before a landlord can issue an N13. Landlords should review their local municipal laws — or consult an experienced legal professional — to ensure full and timely compliance with any by-laws affecting the rental unit and the renovation or repair eviction process.

Landlord legal team at Gobin & Leyenson LLP invites you to follow us on social media, and stay updated on the changes and new cases which impact residential landlords in Ontario. This article provides general information only. It is not legal advice. Contact Gobin & Leyenson LLP for advice specific to your situation.

Footnotes

[1] RTA, s. 50(1)(c)

[2] RTA, s. 50(2)

[3] RTA, s. 53(3)

[4] RTA, s. 53(4)

[5] RTA, s. 53(2.1), (2.2)