Blog > Buying a Tenanted Ottawa Rental to Renovate? The City's New Licence Starts January 1
Buying a Tenanted Ottawa Rental to Renovate? The City's New Licence Starts January 1
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Starting January 1, 2027, an Ottawa landlord who wants a tenant out in order to renovate or repair the unit needs a City licence on top of the provincial rules. The building permit has to come first, the tenant gets a City eviction guide with the N13 notice, and the landlord applies for the licence within 7 days of serving it.
If you are buying a tenanted property with renovation plans, that order of steps is now part of your timeline. Vacant possession for a renovation is something you work toward after closing, not something the purchase gives you.
What changes in Ottawa on January 1, 2027?
City Council approved the Rental Renovation Licence By-law in July 2026 to deter renovictions, which the City describes as evicting a tenant for renovations or repairs when the real goal is to re-rent the unit at a higher rent. According to the City of Ottawa, a landlord seeking to evict a tenant for renovation or repair work will have to:
- Get a building permit for the work before issuing the eviction notice.
- Give the tenant a City-produced eviction education guide along with the notice.
- Apply to the City for a licence within 7 days of issuing the notice.
The application asks for information about the tenancy and the scope of work, confirmation that the guide was delivered, a copy of the N13 notice and the building permit number. The City says it will not charge a licence fee and will rely on enforcement, including fines for non-compliance.
The by-law does not replace the provincial process. The City is clear that landlords still have to go to the Landlord and Tenant Board for an eviction order when one is required.
What the province already requires
The City licence sits on top of the Residential Tenancies Act, which sets the actual rules for ending a tenancy to renovate. Here is the short version of the parts that matter most when you are buying.
| Rule | What the Residential Tenancies Act says | What it means for your plan |
|---|---|---|
| Why the tenant can be asked to leave | Only for repairs or renovations so extensive that they need a building permit and vacant possession of the unit. | Cosmetic work you can do with the tenant in place does not qualify. |
| How much notice | At least 120 days, ending on the last day of a rental period or the end of a fixed term. | Count from the day the notice is served, not from closing. |
| Coming back after the work | The tenant can claim a right of first refusal in writing before moving out, and return at a rent no higher than you could have lawfully charged without the interruption. | A finished renovation does not reset the rent for a returning tenant. |
| Compensation | In a building with fewer than five units: one month's rent (or another unit the tenant accepts) if they do not return, or the lesser of one month's rent and the renovation period if they do. Five or more units: up to three months instead. | Paid no later than the termination date in the notice. Work ordered under another law is treated differently. |
| If the tenant does not leave | The landlord still needs an eviction order from the Landlord and Tenant Board. | The City's licence does not replace this step. |
One more provincial change is worth knowing about. Ontario passed an amendment in 2023 that would require a renovation notice to come with a report from a qualified person confirming the work needs the unit empty. As of the current consolidated Act, that part has not yet been proclaimed in force. Ottawa Council has also asked staff to look at a similar report requirement, along with compensation, when the by-law is reviewed in the next term of council. Either could change the process again.
Why this matters before you buy, not after
A common plan is to buy a tired duplex or triplex with a tenant in place, gut a unit, and assume it will be empty soon after closing. The rules make that slower than it looks on paper, for a few reasons.
The permit comes first. Under the City's rules you cannot serve the notice until the building permit is in hand, and a permit for work big enough to need the unit empty usually needs real plans. Our piece on checking permits on a renovated Ottawa home explains how permits work in Ottawa.
Then the clock starts. The notice period is at least 120 days and has to end at the end of a rental period. If the tenant does not move, the next step is the Landlord and Tenant Board, not the City.
And the tenant may come back. A tenant who gives written notice before moving out can return to the renovated unit at the rent they could lawfully have been charged anyway. That changes the math if your plan depended on higher rent after the work.
If the property has a basement or secondary unit, make sure that unit is legal before you build a plan around it. Our guide to buying a house with a basement apartment in Ontario covers how to check.
Before you firm up on a tenanted Ottawa property you plan to renovate
- Get a copy of every lease and confirm the current rent for each unit. Your plan has to work at that rent for months after closing.
- Ask whether any notice has already been served on a tenant, and get a copy. A notice served by the seller before you buy is a question for your lawyer.
- Decide whether your work truly needs the unit empty. If it can be done with the tenant in place, the N13 route is not available for it.
- Talk to a designer or contractor about what the building permit will need, because the City requires the permit before the notice can go out.
- Map out the timeline: permit, then notice and the City guide, then the licence application within 7 days, then at least 120 days to the end of a rental period.
- Budget for compensation and for a tenant who exercises the right to come back at the same lawful rent.
- If the deal depends on vacant possession, raise it with your lawyer before you firm up, not after.
If you are moving in rather than renovating
The City licence is about evictions for renovations and repairs. Ending a tenancy because you, your spouse or certain family members will live in the home is a different notice under the Residential Tenancies Act, with its own conditions, and for a building of three units or fewer the seller can give it on your behalf once you have an agreement of purchase and sale. Your lawyer is the right person to walk through which route fits your situation.
Common follow-up questions
Does this apply to small buildings, or only apartment towers?
The City's summary describes the licence as applying to landlords seeking to evict a tenant for renovation or repair work, and it does not mention a building-size threshold. The provincial compensation amounts do change at five units, which is why the table above splits them.
What happens if a landlord skips the licence?
The City says it will use enforcement, including fines, rather than a licence fee. Separately, the Residential Tenancies Act lets a former tenant apply to the Landlord and Tenant Board if a notice to end the tenancy was given in bad faith. Neither is a risk worth building into a purchase.
Looking at a tenanted property in Ottawa and wondering whether your renovation plan actually works on paper?
I am happy to help you think through the timing and the questions to ask before you commit. Get in touch. No pressure either way.
Sources: City of Ottawa, Rental Renovation Licence By-law; City of Ottawa news release, July 8, 2026; Residential Tenancies Act, 2006, sections 50 to 57. All were read November 10, 2026.
This is general information, not legal advice on any specific property or tenancy. City licensing details may be added before the by-law takes effect, so confirm the current process with the City and your lawyer before you rely on it.