Backgrounder: Preparing for Ottawa’s Rental Renovation Licence By-law

Information for landlords and tenants Article summary

• The City of Ottawa is exploring a Rental Renovation Licence By-law to ensure tenants are not unfairly displaced under the pretense of repairs or renovations.
• The proposed by-law would require landlords to prove that tenants must vacate for legitimate work, helping to protect housing affordability and stability.
• Public engagement will begin this fall, with final recommendations expected in spring 2026.

Affordable housing shortage continues

Access to safe and affordable housing is a critical issue across Ontario. Here at home, Ottawa’s rapid population growth, which amounts to about 10 per cent between 2020 and 2024, is changing the housing landscape. That includes the rental market.

In the 2024 Progress Report on the City’s 10-Year Housing and Homelessness Plan, it is estimated that renters will make up approximately 43 per cent of all households by 2035. Rental households are facing higher prices and lower vacancy rates – meaning affordable rental units will become scarcer in the decade to come if this pattern continues.

Evictions for renovations compound situation

One of the issues contributing to this situation is when tenants are unlawfully displaced from affordable units under the pretense that renovations are needed.

When a rental unit requires significant repairs or renovations, a landlord can legally evict a tenant provided they follow specific regulations under the Residential Tenancies Act. The tenants must be provided with:

• At least 120 days notice from the landlord
• The option to continue renting the renovated unit at a price increased within the lawful range. In 2025, this was 2.5 per cent in Ontario
• Compensation for the eviction, the amount of which is determined by various factors, including if the tenant wishes to return to the renovated unit

In some cases, regardless of whether the unit was renovated or not, the landlord will replace evicted tenants with new tenants and charge a higher rent. Tenants being evicted often receive minimal notice, no compensation and no option to return to the unit. This practice is commonly referred to as a “renoviction” and is not permitted under the Residential Tenancies Act.

Government oversight for tenants rights Provincial level

Only the Landlord and Tenant Board, overseen by the Government of Ontario, has the jurisdiction to address and resolve disputes between landlords and tenants about evictions. These disputes are decided based on the regulations under the Residential Tenancies Act.

Ontario’s Helping Homebuyers, Protecting Tenants Act, also known as Bill 97, includes provisions in Schedule 7 that would amend the Residential Tenancies Act to further protect tenants from unlawful evictions. Schedule 7 also includes important protections against improper evictions for personal use by a landlord, which would complement renovation-related eviction regulations.

Bill 97 received Royal Assent in June 2023 but has not yet been proclaimed to be officially adopted as law. As a result, these additional tenant protections are currently not in force.

Municipal level

The City of Ottawa has no authority to stop an eviction from occurring. Ontario municipalities can only provide information for landlords and tenants to help ensure everyone is aware of their rights:

• Tenants’ rights and supports
• Landlords’ roles and responsibilities

Pending the proclamation of Bill 97, municipalities across Ontario are looking into other ways to support tenants and help prevent unlawful evictions due to renovations. The cities of Hamilton, London and Toronto have enacted by-laws that, among other regulations, require landlords to obtain a licence to renovate rental units. This would provide opportunities for those cities to ensure tenants are treated fairly and to confirm the renovation or repair work actual requires the tenant to move out. This licence is separate from and in addition to any building permits that may be required.

City of Ottawa to review, develop similar by-law

Following a feasibility assessment, Ottawa City Council directed staff to review and develop a by-law for licensing rental renovations.

This potential new by-law would seek to protect vulnerable tenants from unjust displacement and ensure tenant rights are not violated. Staff are exploring key measures as part of this project, including requiring landlords to obtain a licence from the City every time they provide a tenant with an eviction notice for repairs or renovations. If enacted, landlords would need to provide a letter from a qualified expert confirming that renovation or repair work requires the tenant to move out. The by-law would also promote housing stability and affordability and support compliance with provincial legislation.

Before development of the by-law begins, we want to better understand the unlawful renovation-related evictions that have been happening in Ottawa and how they are impacting families and housing affordability.

We are examining the approaches taken by other municipalities and considering planned legislation, programs, and services in other levels of government. We are also consulting with various community partners, organizations, agencies and residents.

Engagement with tenant and landlord groups will begin in the coming weeks. This will be followed by broader public consultations in September and the launch of an online questionnaire through Engage Ottawa. The feedback received from these engagements will be essential in understanding the impacts of these evictions and how this by-law could work in Ottawa.

Final recommendations on the Rental Renovation Licence By-law are expected in spring 2026.

Stay informed

Visit Engage Ottawa for more information about this by-law review and the development of the City’s Rental Renovation Licence By-law. Subscribe to this Engage Ottawa project for updates on the project and information on how you can have your say on this important issue.

About by-law reviews

In 2023, City Council approved the 2023 to 2026 By-law Review Workplan. City by-laws are regularly reviewed to address any changes in legislation, reflect emerging issues and community requirements, and encompass evolving technologies.

To learn more about by-law reviews, watch this video explaining the City’s by-law review process or visit the City’s By-law Reviews page.