Toronto Rental Law Updates 2025: What Landlords Must Know

Ontario’s rental sector faces major changes in 2025 with several amendments to the Residential Tenancy Act reshaping how landlords operate in Toronto. These modifications affect maintenance obligations, evictions, and tenant relationships, requiring immediate attention from property owners.

Key Takeaways

• Bill 60 introduces changes to maintenance standards, creating more specific obligations for landlords.
• Toronto’s new Renoviction Bylaw requires licensing before renovation-based evictions, adding costs and verification steps.
• The Landlord and Tenant Board has revised its dispute resolution system with new hearing and application procedures.
• Legal consultation is advisable before implementing major policy changes, as penalties for non-compliance have increased.
• The rent increase guideline for 2025 stands at 2.8%, with strict protocols for implementation.
• Streamlined eviction procedures reward proper documentation while maintaining tenant protections.
• Documentation requirements have become more stringent, requiring updates to record-keeping systems.

Table of Contents

• Landlord Maintenance Responsibilities
  • Maintenance Standards
• Eviction Procedures
  • Notice Period Adjustments
  • Evidence Standards
  • Toronto Renoviction Bylaw
• Tenant Rights and Protections
  • Right to Reasonable Enjoyment
  • Anti-Discrimination Protections
  • Privacy Considerations
• Rent Increase Regulations
  • Above-Guideline Increases
• Dispute Resolution Process
  • Digital Systems
  • Two-Stage Resolution
  • Hearing Structure
• Legal Considerations for Landlords
  • Lease Documents
  • Operational Updates
  • Financial Penalties

Landlord Maintenance Responsibilities

The 2025 amendments to the Residential Tenancy Act have substantially altered maintenance obligations for property owners. The new regulations establish specific timelines for addressing different maintenance issues based on their severity.

The updated requirements classify maintenance needs into three categories:

• Emergency issues (affecting health or safety): 24-hour response required
• Functional issues (affecting daily use): 72-hour response required
• Non-essential issues: 7-day response required

Property owners must maintain logs documenting when issues were reported and the steps taken to address them. These records serve as evidence in dispute proceedings, and incomplete documentation may result in adverse decisions.

Maintenance Standards

The definition of “maintaining a residential complex in good repair” has been expanded to include:

• Building envelope integrity
• HVAC system functionality
• Common area cleanliness and safety
• Exterior grounds maintenance
• Pest control responsibilities

For Toronto landlords, these standards work alongside municipal property standards bylaws, creating a dual layer of compliance requirements. Meeting these standards is not optional—failure to comply can trigger both provincial penalties and municipal enforcement actions.

Eviction Procedures

The 2025 updates to the Residential Tenancy Act modify eviction procedures in ways that benefit organized landlords while maintaining procedural safeguards for tenants.

Notice Period Adjustments

Notice periods have been adjusted:

• Non-payment of rent: Reduced from 14 days to 10 days
• Property damage: Standardized to 15 days
• Illegal activities: Expedited to 7 days
• Other violations: 20 days

These changes address landlord concerns about lengthy eviction timelines while still providing reasonable notice to tenants.

Evidence Standards

Evidence standards have become more structured, with specific documentation now required with eviction applications:

• Complete payment records showing arrears
• Dated photographs of property damage
• Witness statements for behavioural issues
• Records of previous warnings

The Landlord and Tenant Board now processes properly documented applications more efficiently, reducing the overall time from notice to enforcement for landlords who maintain thorough records.

Toronto Renoviction Bylaw

Toronto’s new Rental Renovation Licence Bylaw is one of the biggest changes for landlords in 2025. This municipal regulation specifically targets “renovictions”—the practice of using renovations as a pretext to evict long-term tenants and raise rents.

Under the new bylaw, landlords planning renovations that require tenant removal must:

• Obtain a Rental Renovation Licence before issuing an N13 notice
• Pay a licensing fee of $700 per unit
• Submit detailed construction plans and building permits
• Provide third-party verification that work cannot be completed with tenants in place
• Offer displaced tenants the right of first refusal to return after renovations
• Provide relocation assistance, including temporary housing costs

This bylaw works alongside the provincial Residential Tenancy Act but adds municipal oversight, increasing the burden of renovation-based evictions. The bylaw aims to preserve Toronto’s affordable housing stock by preventing landlords from using the renovation loophole to circumvent rent control.

Tenant Rights and Protections

The 2025 amendments adjust the balance between landlord-tenant rights, but certain fundamental protections remain in place.

Right to Reasonable Enjoyment

Landlords must still provide a 24-hour written notice before entering a unit, except in true emergencies. However, the definition of “emergency” has been clarified to include situations that might cause property damage if left unaddressed, giving landlords more flexibility.

Anti-Discrimination Protections

Anti-discrimination protections remain strong, with new specific language prohibiting discrimination based on source of income. Landlords cannot reject applicants solely because they receive government assistance, though standard income verification methods remain permissible.

Privacy Considerations

The rules regarding privacy have been modified to address security concerns. Landlords can now install security cameras in common areas without tenant consent, provided clear notices are posted. This change helps property managers address security issues more effectively.

Rent Increase Regulations

The 2025 rent increase guideline for Ontario has been set at 2.8%, a moderate increase from previous years that applies to most residential rental units in Toronto.

For rent increases to be valid, landlords must:

• Provide 90 days written notice using the official N1 form
• Calculate the increase only on the base rent, excluding utilities
• Apply increases no more than once every 12 months
• Include clear information about the tenant’s right to dispute

Buildings first occupied after November 15, 2018, remain exempt from rent control guidelines. This creates two distinct operating frameworks for Toronto landlords based on property age.

Above-Guideline Increases

The rules regarding above-guideline increases (AGIs) have been modified. The process now focuses on three categories of improvements that qualify:

• Energy efficiency upgrades
• Security enhancements
• Accessibility modifications

The application process has been streamlined, but the requirements for supporting documentation have increased, requiring detailed before-and-after evidence of improvements.

Dispute Resolution Process

The Landlord and Tenant Board has implemented major operational changes for 2025, affecting how rental disputes are resolved across Ontario.

Digital Systems

All applications must now be submitted electronically through the Board’s online portal, with paper submissions accepted only in exceptional cases. This change reduces processing times but requires adaptation to the new system.

Two-Stage Resolution

For maintenance-related disputes, the Board now uses a two-stage process:

1. Initial complaints trigger a mandatory mediation session
2. Formal hearings are scheduled only if mediation fails

This approach aims to resolve straightforward issues without consuming hearing resources, potentially reducing the backlog that has plagued the system.

Hearing Structure

Formal hearings now follow a more organized format with time constraints for presentations. Landlords should prepare concise, evidence-based arguments focused on specific violations of the Residential Tenancy Act.

The Board has expanded its enforcement authority regarding maintenance orders. Failing to comply with directives can now result in the Board allowing tenants to arrange repairs and deduct costs from rent.

Legal Considerations for Landlords

The 2025 changes to rental laws have created several areas where legal consultation is especially valuable for Toronto property owners.

Lease Documents

Standard lease agreements must now contain specific clauses addressing the new maintenance standards and eviction procedures. Older lease templates may not comply with current requirements, potentially leading to enforcement issues if disputes arise.

A lawyer for landlords can review and update lease documents to ensure they comply with current legislation. This investment protects against challenges based on technical non-compliance.

Operational Updates

Property management companies should update their internal policies regarding:

• Maintenance response protocols
• Rent increase implementation procedures
• Record-keeping systems for tenant communications
• Evidence collection for potential lease violations

Legal review of these policies helps identify gaps between company practices and legal requirements before they lead to compliance issues.

Financial Penalties

The 2025 amendments introduced a system of administrative penalties for certain violations. These penalties can be applied without a formal hearing and range from $500 to $10,000, depending on the severity and whether it’s a repeat offence. For serious cases involving multiple units, the financial consequences can be severe. Legal guidance on compliance audits can help landlords address potential issues before they trigger penalties.

The 2025 changes to Toronto’s rental laws presented both opportunities and challenges for landlords, and Ontario rental regulations continue evolving into 2026. Property owners who stay aligned with changing landlord and tenant laws will be better positioned to protect their investments, reduce legal risk, and maintain stronger tenant relationships. For a more up-to-date breakdown of landlord responsibilities, eviction rules, rent control, and compliance requirements, read our complete guide to Ontario landlord laws.

For guidance on implementing these changes in your properties, contact Property Management Toronto. Our team keeps up with all regulatory developments and can help ensure your rental properties remain both compliant and financially sound.