Rental Housing Renovation Licence Bylaw
This bylaw is a consolidated digital version of the official legal document. It is not an exact reproduction and is for information purposes only.
For any questions related to this bylaw contact 519-747-8785 or municipalenforcement@waterloo.ca.
Bylaw number: 2026-012
Last passed by council: February 23, 2026
Bylaw for the licensing and regulation of renovations in rental housing
- Definitions
- General application of bylaw
- Application of bylaw
- Application requirements
- Compensation and alternate accommodation
- Issuance of licence and grounds for refusal
- Terms of licence
- Revocation and suspension
- Appeal
- Notices
- Inspection
- Order to discontinue activity
- Work order
- Remedial action
- Prohibitions
- Enforcement
- Penalties
- Collection of unpaid fines
- Short title
- Severability
- Coming into force
Bylaw for the licensing and regulation of renovations in rental housing
Whereas pursuant to Section 11(2) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, (the “Municipal Act”), a lower tier municipality may pass bylaws, subject to certain rules, respecting, among other things, health, safety and well being of persons, the economic, social and environmental well being of the municipality, and the protection of persons and property, including consumer protection;
And whereas pursuant to section 11(3) a lower tier municipality may, subject to certain rules, pass bylaws respecting business licensing;
And whereas pursuant to section 151(1) of the Municipal Act, without limiting sections 9, 10 and 11, a municipality may provide for a system of licences with respect to a business and may:
a) prohibit the carrying on or engaging in the business without a licence;
b) refuse to grant a licence or to revoke or suspend a licence;
c) impose conditions as a requirement of obtaining, continuing to hold or renewing a licence;
d) impose special conditions on a business in a class that have not been imposed on all of the businesses in that class in order to obtain, continue to hold or renew a licence;
e) impose conditions, including special conditions, as a requirement of continuing to hold a licence at any time during the term of the licence; and,
f) license, regulate or govern real and personal property used for the business and the persons carrying it on or engaged in it.
And whereas Section 436 of the Municipal Act authorizes a municipality to pass bylaws providing that the municipality may enter on land at any reasonable time for the purpose of carrying out an inspection to determine whether or not there is compliance with a bylaw, a direction or order, or a condition of a licence;
And whereas Sections 390 to 400 of the Municipal Act authorize a municipality to pass bylaws imposing fees or charges for services or activities provided or done by them;
And whereas Sections 23.2, 23.3 and 23.5 of the Municipal Act authorizes a municipality to delegate its administrative and hearing powers in certain circumstances; and,
And whereas Council of the Corporation of the City of Waterloo (“Council”) deems such a system of rental housing renovation licences appropriate to address health and safety, social well being of the Municipality, well being of Persons, nuisance control and consumer protection.
Therefore, the municipal council of the corporation of the city of waterloo enacts as follows:
1.0 Definitions
2.0 General Application of the bylaw
2.1 This bylaw shall apply to all rental units in the City of Waterloo for which an N13 notice has been given to a tenant on or after the date that this bylaw comes into force.
2.2 This bylaw shall not apply to the following:
a) rental units owned, operated, or managed by a post secondary institution, where the accommodations are located on campus and provided to students, staff, or faculty as part of the institution’s housing;
b) rental units operated by the Region of Waterloo or City of Waterloo;
c) a bed and breakfast establishment that is licensed under the City’s business licensing bylaw 2023-105, as amended, or successor bylaws;
d) a rental unit to which any of the following statutes, or their regulations, apply:
i. the Homes for Special Care Act, R.S.O. 1990, c. H.12, as amended, or any successor legislation;
ii. the Innkeepers Act, R.S.O. 1990, c. 17, as amended, or any successor legislation;
iii. the Fixing Long-Term Care Act, 2021, S.O. 2021, c. 39, sch 1., as amended, or any successor legislation;
iv. the Retirement Homes Act, 2010, S.O. 2010, c. 11, as amended, or any successor legislation; and,
v. the Housing Services Act, 2011, S.O. 2011, c. 6, Sch 1.
e) social housing or affordable housing that is not subject to Housing Services Act, 2011, S.O. 2011 c.6, Sch 1, as amended, but which is subject to an agreement with the Regional Municipality of Waterloo and which has been approved for exemption by the Director; and,
f) a group home.
3.0 Application of the bylaw
3.1 Every landlord of a rental unit who has delivered an N13 notice to a tenant shall apply for a licence within seven (7) calendar days of delivery of such notice.
3.2 Every landlord of a residential rental unit who delivers an N13 notice to a tenant shall at the same time deliver a copy of the tenant and landlord rights and obligations information package.
3.3 Every landlord of multiple rental units within the same building shall apply for a separate licence for each rental unit for which an N13 notice is being served.
3.4 Any landlord of a rental unit shall not be entitled to a licence if they do not have all necessary permits required to carry out the repair or renovation, including a building permit issued by the Chief Building Official.
4.0 Application requirements
4.1 To apply for a licence, an applicant shall submit the following to the Director:
a) a complete application in the form prescribed by the Director, which shall include:
i. the landlord’s name;
ii. the landlord’s residential mailing address;
iii. the address for the rental unit; and,
iv. the telephone number, and e mail address for the landlord;
b) the applicable fees in accordance with the fees and charges bylaw;
c) where the landlord is a corporation, Articles of Incorporation or a copy of a corporate profile or entity report and a list of the names and addresses of the current directors and officers of the corporation;
d) where the landlord is a partnership, a list of the names and addresses of the partners and, if a registered partnership, a copy of the registered declaration of partnership, and any changes or corrections thereto;
e) where the landlord is an individual, a copy of a piece of government issued photo identification for each landlord listed on title;
f) a copy of the N13 notice given to each individual tenant for the rental unit;
g) a certified statement from the person who gave the N13 notice to the tenant, which sets out the date on which the N13 notice was given to the tenant, the manner in which it was given to the tenant, and by whom;
h) a certified statement from the person who gave the tenant the tenant and landlord rights and obligations information package which sets out the date that the tenant and landlord rights and obligations information package was given to the tenant, the manner it was given to the tenant, and by whom;
i) a copy of the building permit issued in relation to the rental unit by the Chief Building Official;
j) a copy of the report prepared by a qualified person, stating that the repairs or renovations are so extensive or present such a danger to the health and safety of the occupant that vacant possession of the rental unit is required; and,
k) any other information as may be required by the Director.
4.2 Every licensee shall:
a) once an N13 notice has been delivered and an application has been made in accordance with this bylaw, post a notice of application on the door of the rental unit for which the application applies, stating that the application has been made to the City for a residential rental renovation licence;
b) once issued, provide a copy of the licence to the tenant(s) of the rental unit;
c) once issued, post a copy of the licence on the door of the rental unit for which it applies;
d) once a licence is issued, provide a copy of the full application, including a copy of the building permit and supporting report(s), to the tenant(s) of the rental unit;
e) produce the licence for inspection upon request of the City;
f) notify the Director within seven (7) days of any change in their phone number, residential address, email address provided on the application;
g) comply with the provisions of this bylaw and all applicable laws, including, but not limited to, the zoning bylaw; and,
h) comply with the conditions and restrictions placed on the licence.
5.0 Compensation and alternate accommodation
5.1 Where, upon being served with an N13 notice by the landlord, a tenant has exercised their rights in compliance with section 53 of the Residential Tenancies Act to have a right of first refusal to occupy the rental unit after repairs and renovations are completed, the landlord shall:
a) compensate the tenant an amount equal to the difference between the current rent of the affected rental unit being repaired or renovated and the most recently published average market rent of a comparable rental unit for the entire duration of the repair or renovation; or,
b) make arrangements agreeable to the tenant, in the tenant’s discretion and as indicated by a signed agreement between the landlord and the tenant, for the tenant’s temporary alternate accommodation in a comparable rental unit for the entire duration of the repair or renovation.
5.2 In addition to the compensation or alternate accommodation required in section 5.1, every landlord who serves an N13 notice on a tenant shall pay to the tenant a one time amount of $1,000.00 towards moving expenses. Where there are multiple tenants in the affected rental unit, the payment shall be divided equally among each tenant.
5.3 The compensation indicated in section 5.1(a) above shall be paid by the landlord to the tenant within seven (7) calendar days before the first (1st) day of each month for the entire duration that the tenant is displaced from the rental unit because of the repair or renovation.
5.4 The compensation indicated in section 5.2 above shall be paid to the tenant no later than the termination date specified on the N13 notice, or no later than the date that the tenant vacates the rental unit, whichever is earlier.
5.5 The above the compensation and or alternate accommodation requirements shall be in addition to the tenant’s rights of compensation and any other rights, as applicable, under the Residential Tenancies Act.
6.0 Issuance of licence and grounds for refusal
6.1 The Director shall receive and process all completed applications for licences.
6.2 The Director shall issue a licence to any person who meets the requirements of this bylaw, except where:
a) a decision or order of the landlord and tenant board has rendered the N13 notice in connection with the licence null and void, or otherwise unenforceable; or,
b) a decision of a court of competent jurisdiction has rendered the N13 notice in connection with the licence null and void, or otherwise unenforceable.
6.3 The Director shall generally perform all administrative functions conferred upon them by this bylaw.
6.4 The Director may, at any time, when issuing or renewing a licence, impose such terms or conditions on the licence as the Director considers appropriate.
6.5 Should the Director impose terms or conditions on a licence, the Director shall provide written reasons thereafter.
6.6 Licences issued pursuant to this bylaw are conditional on compliance by the licensee with all municipal bylaws and other applicable laws.
6.7 In the case where a decision of the landlord and tenant board, or decision of another court of competent jurisdiction, has rendered the N13 notice in connection with a licence issued under this bylaw null and void or otherwise unenforceable, the licence shall automatically be terminated.
7.0 Terms of licence
7.1 Unless revoked, suspended or otherwise declared automatically terminated in accordance with this bylaw, a licence issued shall remain in effect until the renovations connected with the application are complete and the associated building permit is closed.
8.0 Revocation and suspension
11.0 Inspection
11.1 The City may enter the landlord’s land at any reasonable time for the purpose of carrying out an inspection to determine whether or not the following are being complied with:
a) this bylaw;
b) a condition of a licence issued under this bylaw; or,
c) an order made under section 431 of the Municipal Act.
11.2 For the purposes of conducting an inspection pursuant to section 11.1 of this bylaw, the City may:
a) require the production for inspection of documents or things relevant to the inspection;
b) inspect and remove documents or things relevant to the inspection for the purpose of making copies or extracts;
c) require information from any person concerning a matter related to the inspection; and,
d) alone or in conjunction with a person possessing special or expert knowledge, make examinations or take tests, samples or photographs necessary for the purpose of the inspection.
11.3 No person exercising a power of entry on behalf of the City shall enter or remain in any room or place actually being used as a dwelling unless:
a) the consent of the occupier is obtained, the occupier first having been informed that the right of entry may be refused and, if refused, may only be made under the authority of an order issued under section 438 of the Municipal Act, a warrant issued under section 439 of the Municipal Act or a warrant issued under section 386.3 of the Municipal Act;
b) an order issued under section 438 of the Municipal Act is obtained;
c) a warrant issued under section 439 of the Municipal Act is obtained;
d) a warrant issued under section 386.3 of the Municipal Act is obtained;
e) the delay necessary to obtain an order under section 438 of the Municipal Act, to obtain a warrant under section 439 of the Municipal Act or to obtain the consent of the occupier would result in immediate danger to the health or safety of any person; or,
f) the City has first given notice of its intention to enter the occupier of the land as required under subsection 435(2) of the Municipal Act and the entry is authorized under sections 79, 80 or 446 of the Municipal Act.
11.4 No person shall hinder or obstruct, or attempt to hinder or obstruct, any person who is exercising a power or performing a duty under this bylaw. For more certainty:
a) a refusal to consent to enter or remain in a room or place actually used as a dwelling does not constitute hindering or obstruction within the meaning of this section unless the City is acting under an authority set out in section 11.3 above.
12.0 Order to discontinue activity
12.1 Where the Director has reasonable grounds to believe that a contravention of this bylaw has occurred, the Director may make an order requiring the person who contravened this bylaw, or who has caused or permitted the contravention, or the landlord or occupier of the land on which the contravention occurred, to discontinue the contravening activity.
12.2 An order under section 12.1 of this bylaw shall set out:
a) reasonable particulars of the contravention adequate to identify the contravention and the location of the land on which the contravention occurred; and,
b) the date by which there must be compliance with the order.
12.3 Any person who contravenes an order under section 12.1 of this bylaw is guilty of an offence.
13.0 Work order
13.1 Where the Director has reasonable grounds to believe that a contravention of this bylaw has occurred, the Director may make an order requiring the person who contravened this bylaw, or who caused or permitted the contravention, or the landlord or occupier of the land on which the contravention occurred, to do work to correct the contravention.
13.2 An order under section 13.1 of this bylaw shall set out:
a) reasonable particulars of the contravention adequate to identify the contravention and the location of the land on which the contravention occurred; and,
b) the work to be done and the date by which the work must be done.
13.3 An order under section 13.1 of this bylaw may require work to be done even though the facts which constitute the contravention of this bylaw were present before this bylaw came into force.
13.4 Any person who contravenes an order under section 13.1 of this bylaw is guilty of an offence.
14.0 Remedial action
14.1 If a person fails to do a matter or thing, including comply with an order under this bylaw, as directed or required by this bylaw, the City may, in default of it being done by the person directed or required to do it, do the matter or thing at the person’s expense. The City may recover the costs of doing a matter or thing from the person directed or required to do it by action or by adding the costs to the tax roll and collecting them in the same manner as municipal taxes.
14.2 The costs outlined in 14.1 of this bylaw shall include interest calculated at a rate of fifteen (15%) percent, calculated for the period commencing on the day the City incurs the costs and ending on the day the costs, including interest, are paid in full.
14.3 The amount of costs, including interest, constitutes a lien on the land upon the registration in the proper land registry office of a notice of lien. The lien is in respect of all costs that are payable at the time the notice is registered plus interest accrued to the date the payment is made. Upon receiving payment, the City shall register a discharge of the lien in the proper land registry office.
15.0 Prohibitions
15.1 No person required to obtain a licence shall:
a) hold themselves out to be licensed under this bylaw if they are not licensed;
b) provide false or misleading information to the Director when applying for or renewing a licence, or to a MLEO while they are exercising a power or performing a duty under this bylaw;
c) hinder or obstruct, or attempt to hinder or obstruct, a MLEO or any other person exercising a power or performing a duty under this bylaw;
d) fail to comply with any of the terms and conditions of their licence;
e) fail to provide a copy of the tenant and landlord rights and obligations information package at the same time an N13 notice is served;
f) fail to apply for a licence within seven (7) calendar days of giving an N13 notice to a tenant;
g) fail to post a notice of application per section 4.1(a);
h) fail to post a copy of the licence per section 4.2(c);
i) fail to provide copy of application to tenant per section 4.2(d);
j) fail to produce copy of licence for inspection upon request of the City;
k) fail to comply with a work order;
l) fail to comply with an order to discontinue activity;
m) fail to provide the compensation and or alternate accommodation as described in sections 5.1 and 5.2;
n) fail to provide the compensation as described in section 5.1(a) within the time specified in section 5.3;
o) fail to provide the compensation as described in section 5.2 within the time specified in section 5.4;
p) perform, or cause to be performed, renovations or repairs requiring vacant possession of a residential rental unit(s) pursuant to section 50(1)(c) of the Residential Tenancies Act, without first being issued a licence; or,
q) transfer or assign a licence to any other person or to any other location other than the licenced premises.
16.0 Enforcement
16.1 This bylaw may be enforced by the Director and MLEOs.
16.2 Every person shall, upon request by a MLEO, for the purpose of commencing a proceeding pursuant to this bylaw, provide identification, including full name and address, to the MLEO;
16.3 No person shall provide false, misleading, incomplete or inaccurate identification to a MLEO; and,
16.4 No person shall hinder or obstruct a MLEO performing their duties under this bylaw.
17.0 Penalties
17.1 Every person who contravenes any of the provisions of this bylaw is guilty of an offence pursuant to section 429 of the Municipal Act and all contraventions of this bylaw are designated continuing offences.
17.2 Every person, excluding a corporation, who is convicted of an offence, is liable to a minimum fine of Three Hundred and Fifty Dollars ($350.00) and a maximum fine of Twenty Five Thousand Dollars ($25,000.00) for the first offence and a maximum fine of Fifty Thousand Dollars ($50,000.00) for a subsequent offence.
17.3 Every corporation who is convicted of an offence is liable to a maximum fine of Fifty Thousand Dollars ($50,000.00) for the first offence and a maximum fine of One Hundred Thousand Dollars ($100,000.00) for a subsequent offence.
17.4 In addition to the fine amounts set out in sections 17.2 and 17.3 above, for each day or part of a day that an offence continues, the minimum fine shall be Three Hundred and Fifty dollars ($350.00) and the maximum fine shall be Ten Thousand Dollars ($10,000.00). The total of all daily fines for the offence is not limited to One Hundred Thousand Dollars ($100,000.00).
17.5 Sections 3, 4.2, 11.4, 12.3, 13.4 and 15.1of this bylaw, inclusive of all subsections thereunder, are hereby designated as parts of this bylaw to which the administrative penalty bylaw applies.
17.6 Any person who contravenes any designated provision of this bylaw shall, upon issuance of a penalty notice in accordance with the administrative penalty bylaw, be liable to pay an administrative penalty and any administrative fees.
18.0 Collection of unpaid fines
18.1 Pursuant to section 441 of the Municipal Act, if any part of a fine for a contravention of this bylaw remains unpaid after the fine becomes due and payable under section 66 of the Provincial Offences Act including any extension of time for payment ordered under that section, the Director may give the person against whom the fine was imposed a written notice specifying the amount of the fine payable and the final date on which it is payable, which shall be not less than twenty one (21) days after the date of the notice.
18.2 If the fine remains unpaid after the final date specified in the notice, the fine shall be deemed to be unpaid taxes for the purpose of section 351 of the Municipal Act.
19.0 Short title
19.1 This bylaw shall be known as the “rental housing renovation licence bylaw”.
20.0 Severability
20.1 If a court of competent jurisdiction should declare any section or part of a section of this bylaw to be invalid, such section or part of a section shall not be construed as having persuaded or influenced Council to pass the remainder of this bylaw and it is hereby declared that the remainder of this bylaw shall be valid and shall remain in full force and effect.
21.0 Coming into force
21.1 This bylaw shall come into force and effect on July 1, 2026.