Tenant Relocation Assistance in Ontario: What Landlords Must Pay
When you end a tenancy for a no-fault reason, like moving in, selling or renovating, the law usually requires compensation. The amount depends on the reason, the building and, since September 21, 2026, how much notice you give. Here is what you owe and when.
Key points
- Own-use N12: one month’s rent, unless served on or after Sept. 21, 2026 with at least 120 days’ notice.
- Purchaser N12: one month’s rent, always. The seller owes it.
- N13: one or three months’ rent depending on building size, with different rules if a renovating tenant returns.
- Compensation must be paid by the termination date, or the Board won’t order an eviction.
Compensation, sometimes called relocation assistance, recognizes that the tenant is losing their home through no fault of their own. Some municipalities have their own additional rules for renovation evictions, so check local bylaws too.
What you owe
| Notice | Compensation |
|---|---|
| N12, own or family use, under 120 days’ notice | 1 month’s rent or an acceptable unit |
| N12, own or family use, 120+ days’ notice (served on or after Sept. 21, 2026) | None |
| N12, purchaser’s use | 1 month’s rent or an acceptable unit |
| N13 demolition or conversion, fewer than 5 units | 1 month’s rent or an acceptable unit |
| N13 demolition or conversion, 5 or more units | 3 months’ rent or an acceptable unit |
| N13 renovation, tenant not returning | 1 month (fewer than 5 units) or 3 months (5 or more) |
| N13 renovation, tenant returning | Rent for the work period, up to 1 or 3 months |
No compensation is required if the work was ordered under another law. Most social housing units are also exempt.
When it must be paid
Compensation must be paid by the termination date on the notice. If it hasn’t been paid and the termination date has passed, the application will usually be dismissed. Rent can be waived instead, but only if the waiver is clear, for a specific month and communicated before the termination date. If your application is later dismissed, the Board can order the tenant to return the compensation.
Not sure what you owe? Book a free 20-minute call.
Book a free 20-minute call →Who pays in a sale
For a purchaser N12, the obligation belongs to the landlord who served the notice, usually the seller, not the buyer. The parties can agree in the purchase agreement how the cost is shared, but the tenant must be paid on time either way.
Renovations and the right to return
A renovating tenant who tells you in writing before moving out that they want to return has the right to move back at the rent they would have paid. For tenants who give that notice on or after September 21, 2026, you must keep them informed in writing about the completion date and give them at least 60 days to move back. See N13: demolition and renovation.
If the notice was in bad faith
A former tenant can file a T5. The Board can order rent differences for up to a year, moving costs, up to 12 months’ rent in general compensation and an administrative fine, and any compensation that was never paid.
Frequently asked questions
Do I always have to pay compensation for an N12?
Not for own or family use if the N12 was served on or after September 21, 2026 with at least 120 days’ notice. Purchaser N12s always require it.
How much is N13 compensation?
One month’s rent for buildings with fewer than 5 units and three months for 5 or more, with different amounts if a renovating tenant returns.
When must I pay?
By the termination date on the notice.
Can I waive rent instead of paying?
Yes, if the waiver is clear, for a specific month and communicated before the termination date.
Who pays in a sale, the buyer or the seller?
The landlord who served the N12, usually the seller.
About Bita Di Lisi
Bita is the lead paralegal at Stonegate Legal Services and is licensed by the Law Society of Ontario. She represents Ontario landlords at the Landlord and Tenant Board and teaches landlords and investors about notices, LTB timelines and the mistakes that cost months.
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