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

Bill 97 amendments taking effect September 21, 2026 impose new written notice obligations on landlords at every stage of a renovation eviction — and give tenants a 60-day window to decide whether to return after the work is done.

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

On June 8, 2023, Bill 97, the Helping Homebuyers, Protecting Tenants Act, 2023¹ (“Bill 97”) received Royal Assent. Bill 97 amended the Residential Tenancies Act, 2006² (“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.

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 amount³ — 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.