Renovating a rental property can significantly increase its value, command higher rents, and extend its useful life. But in Ontario, renovating an occupied rental unit is not as straightforward as simply calling a contractor. The RTA provides tenants with strong protections during renovations, and landlords who fail to follow the rules expose themselves to significant LTB liability. Here is what you need to know before your first hammer swing.

Routine Repairs vs. Major Renovations

Not all work on a rental property is treated the same way under Ontario law. There is a key distinction between routine maintenance and repairs — which landlords are obligated to perform and which tenants must tolerate with appropriate notice — and major renovations that require the unit to be vacated.

Routine repairs (fixing a leaky faucet, replacing a failed appliance, repainting common areas) can be done with proper notice to the tenant (at least 24 hours written notice before entry) and do not give the tenant any right to leave. Major renovations requiring vacant possession trigger the N13 process described below.

The N13 Notice: Renovating Occupied Units

When a landlord needs to perform extensive renovations that require the unit to be vacated — kitchen gutting, bathroom demolition, structural work, or anything requiring vacant possession — they must serve the tenant with an N13 Notice to End a Tenancy for the Purpose of Renovations or Repairs. Requirements:

• The N13 notice must specify the renovations to be performed and state that a building permit has been issued (or will be required)
• Notice period is at least 120 days (or the end of the lease term if longer)
• The landlord must pay the tenant compensation equal to three months' rent
• The tenant has the right to first refusal — the right to return to the unit at the same rent once renovations are complete
• If the tenant exercises the right of first refusal, the landlord must give them at least 60 days' notice before the unit is ready for occupancy

The N13 process is heavily weighted toward tenant protection. Attempting to work around it — pressuring tenants to leave, using the work as a pretext to remove a tenant and rent at higher rates — is considered "renoviction" and is actively pursued by the LTB.

Building Permits: When Are They Required?

Ontario's Building Code requires a permit for most structural work, electrical work, plumbing changes, HVAC system changes, and additions. Common renovation work that requires a permit in Kitchener, Waterloo, and Cambridge includes:

• Any structural alterations (removing or adding walls, changing openings)
• Electrical panel upgrades, new circuits, or rewiring
• Plumbing rough-in changes or drain relocations
• Heating system replacement or significant modification
• Basement underpinning or waterproofing involving foundation work
• Addition of a secondary suite (basement apartment)

Cosmetic work — painting, flooring replacement, cabinet replacement, fixture swaps — typically does not require a permit. When in doubt, contact your municipality's building department before starting work.

Renovating Vacant Units

If a unit is vacant — either between tenancies or after a tenant has voluntarily left — there are no RTA restrictions on renovations. This is the ideal scenario for major renovations. Work with qualified, licenced contractors, obtain all required permits, and complete inspections as required. A vacant unit renovation also allows you to bring the unit fully up to current standards and reset the market rent for the next tenancy.

If you are retaining an existing tenant and creating a planned vacancy for renovations, negotiate the terms clearly in writing before the tenant vacates. Misunderstandings about the return timeline, the post-renovation rent, and the condition of the unit are common sources of disputes.

Secondary Suite Additions

Adding a secondary suite (basement apartment) is one of the most common renovation projects for Ontario rental property owners. Secondary suites must comply with Ontario Building Code requirements including minimum ceiling heights (typically 1.95m / 6'5"), egress window requirements for sleeping areas, smoke and CO detector requirements, separate entrance or approved shared entry, and fire separation requirements between the suite and the main dwelling. Obtaining a building permit and passing required inspections is mandatory and protects you legally if questions arise later.

Frequently Asked Questions

Can I raise the rent after renovating an occupied unit?

If the tenant remains in place throughout renovations, you can only raise rent by the allowable guideline amount or through an above-guideline increase application. Renovation costs alone do not allow a rent increase beyond the guideline for occupied units.

What is "renoviction" and how is it treated by the LTB?

Renoviction refers to using a false or exaggerated renovation claim to evict a tenant and then re-renting at higher rates without actually returning the unit to the tenant. The LTB and municipality take these complaints seriously. Landlords found to have engaged in renoviction can face significant orders including compensating the tenant and reinstating the tenancy.

Do I need a licensed contractor for all renovation work?

Electrical, HVAC, and plumbing work must be performed by licensed tradespeople in Ontario. General construction, carpentry, and painting can be performed by unlicensed workers, but insurance considerations and permit inspection requirements mean that experienced, reputable contractors are strongly recommended for all permit-required work.