Ottawa Explores Rental Renovation By-Law to Address Renovictions by 2026

The City of Ottawa is in the midst of reviewing a potential Rental Renovation By-law, with council directing staff in early 2025 to explore how the city can regulate so-called “renovictions.” Consultations with the public and industry are expected to begin later this year, with recommendations anticipated by spring 2026. If passed, Ottawa would join a growing list of Canadian municipalities attempting to put guardrails on how landlords handle evictions tied to renovations.

The Rental Renovation Licence by-law was referred to as a “renovictions” by-law, aimed at addressing evictions tied to major renovations or repairs. These evictions occur when tenants are displaced for renovations, only to be replaced with higher-paying tenants, raising concerns about bad-faith evictions. The review represents an important regulatory development that landlords and investors need to monitor closely.

City staff are examining the scope and impact of unlawful eviction practices in Ottawa and exploring potential measures within municipal authority. The process is designed to ensure both landlords and tenants are aware of their rights under the Residential Tenancies Act (RTA), 2006, which governs legal evictions for renovations, including issuance of N13 notices, tenant compensation, and the conditions under which tenants may be asked to vacate.

The review includes multiple avenues for stakeholder input. A survey open until October 31, 2025, allows landlords, tenants, and community members to share their experiences with renovation-related evictions. Additionally, the City will host three in-person open houses in September 2025, providing opportunities for direct engagement with policy staff. Feedback collected during these consultations will inform staff recommendations, which are expected to be presented to City Council in spring 2026.

Ottawa’s initiative reflects a wider trend in Ontario. Some municipalities, such as Hamilton and Toronto, have already passed renoviction by-laws requiring landlords to obtain permits and provide documentation when issuing N13 notices. Others are continuing to explore similar measures, with varying approaches depending on local housing pressures and policy priorities.

For property owners and investors, the by-law review signals potential changes to renovation planning and execution. Projects requiring tenant displacement may face additional steps, including licence applications, verification requirements, and municipal oversight. 

Ottawa’s review of a Rental Renovation Licence By-law suggests the city is increasing its focus on tenant protection and responsible landlord practices. While the by-law is still under review, and consultations are upcoming, landlords should consider this as an early signal that Ottawa’s regulatory environment is shifting toward greater scrutiny of landlord practices, and prepare accordingly.