06/29/2026
Bill 97
2026 Residential Tenancies Act Updates
What it means for Landlords and Tenants
Ontario’s rental housing framework continues to evolve.
Pursuant to the Helping Homebuyers, Protecting Tenants Act, 2023 (Bill 97), several amendments to Ontario’s Residential Tenancies Act, 2006 (RTA) are scheduled to come into force during 2026, subject to the applicable coming-into-force provisions and regulations.
The amendments affect both landlords and tenants and address air conditioning, payment agreements, renovictions, rights of first refusal, personal-use evictions, enforcement provisions, and regulatory compliance.
🔹Tenant Installation of Air Conditioning Units
One of the most widely discussed changes is the introduction of section 36.1 of the Residential Tenancies Act, 2006.
Subject to the requirements set out in the legislation, tenants may install and use a window or portable air conditioning unit where air conditioning is not otherwise provided by the landlord.
However, this is not an unrestricted right.
Tenants must comply with various conditions, including:
• Providing notice to the landlord before installation
• Installing and maintaining the unit safely
• Ensuring the installation does not damage the rental unit or residential complex
• Complying with applicable laws, municipal by-laws, condominium rules, and fire safety requirements
Landlords continue to retain important rights relating to safety, insurance requirements, structural concerns, property protection, and compliance with applicable law.
🔹Recovery of Air Conditioning Electricity Costs
Where electricity is included in the rent, landlords may recover the actual or reasonably estimated cost of electricity associated with a tenant-installed air conditioner.
Any charge must be connected to actual operating costs and cannot simply be an arbitrary surcharge.
Where the air conditioner is removed or no longer used, the associated charge must generally be adjusted or discontinued in accordance with the Act.
🔹New Requirements for Renovictions (N13 Notices)
Bill 97 introduces additional requirements for landlords seeking to terminate a tenancy to complete renovations or repairs that require vacant possession.
In prescribed circumstances, landlords must obtain supporting documentation from a qualified professional confirming that the work is sufficiently extensive that the unit must be vacant for the work to be completed.
This change is intended to provide greater transparency and reduce disputes regarding whether a renovation genuinely requires a tenant to vacate.
For landlords, these amendments may require additional evidence and documentation in circumstances where the prescribed requirements apply.
For tenants, the amendments provide additional procedural safeguards intended to ensure that renovation-related termination notices are supported by appropriate evidence.
🔹Expanded Right of First Refusal
Ontario tenants who are displaced for qualifying renovations may already have a right to move back into their unit once the work is completed.
Bill 97 strengthens that process by establishing additional communication and notice obligations.
Depending on the circumstances and applicable regulations, landlords may be required to:
• Provide updates regarding anticipated completion dates
• Notify former tenants of significant changes to project timelines
• Advise tenants when the unit is ready for re-occupancy
• Provide the required opportunity for tenants to exercise their right to return
These amendments place greater emphasis on documentation, communication, and record-keeping throughout the renovation process.
🔹Increased Scrutiny of Personal-Use Evictions (N12 Notices)
Bill 97 also affects certain personal-use eviction applications.
Where a landlord, purchaser, family member, or caregiver seeks possession of a unit for personal occupancy, the legislation strengthens the ability of the Landlord and Tenant Board to examine whether the eviction was carried out in good faith.
The amendments create circumstances where a landlord may be required to demonstrate that the intended occupant genuinely occupied the unit following the tenant’s departure.
For landlords, maintaining clear records and documentation supporting the intended use of the property may become increasingly important.
For tenants, the amendments are intended to provide additional safeguards where allegations of bad-faith personal-use evictions arise.
🔹Payment Agreements
Amendments to section 206 provide for the use of Landlord and Tenant Board approved forms for certain repayment agreements.
The objective is to improve consistency, transparency, and enforceability while reducing disputes involving rental arrears and payment arrangements.
Both landlords and tenants should ensure they are using the most current Landlord and Tenant Board forms once they become available.
🔹Increased Penalties
Bill 97 substantially increases the maximum penalties available under the Residential Tenancies Act.
For individuals, the maximum fine increases from $50,000 to $100,000.
The legislation also provides for increased penalties applicable to corporations.
These amendments reinforce Ontario’s continued emphasis on compliance and accountability within the residential rental housing sector.
🔹Future Regulations
The Province has also been granted authority to establish additional regulations respecting tenant-installed air conditioners and other related matters.
As a result, landlords and tenants should continue monitoring future regulatory changes as additional provisions are brought into force.
🔹What This Means Going Forward
Bill 97 introduces several significant amendments to Ontario’s residential tenancy framework.
While many of the amendments focus on expanding tenant protections, the legislation also provides landlords with clearer processes, defined cost-recovery mechanisms, and greater certainty regarding compliance expectations.
As with any legislative change, the practical impact will ultimately depend upon the wording of future regulations, the facts of individual cases, and how the Landlord and Tenant Board interprets and applies the legislation over time.
Understanding the new requirements before disputes arise remains one of the best ways for both landlords and tenants to protect their respective rights and obligations.
🔹Important Note
This article is provided for general informational purposes only and is not intended as legal advice. Legislative provisions, regulations, Landlord and Tenant Board forms, administrative policies, and legal interpretations may change over time. Landlords and tenants should consult the Residential Tenancies Act, 2006, applicable regulations, official Landlord and Tenant Board materials, and seek qualified legal advice where appropriate.
🔹Sources
• Residential Tenancies Act, 2006, S.O. 2006, c. 17
• Helping Homebuyers, Protecting Tenants Act, 2023 (Bill 97)
• Ontario e-Laws
• Landlord and Tenant Board (Ontario)
© 2026 Cheryl Easton | CENTURY 21 Granite Realty Group Inc. All Rights Reserved.
