What Changed July 1, 2026 for Ontario Landlords and Tenants (Bill 97)

This article is general information, not legal advice. Verify against the Residential Tenancies Act, the Landlord and Tenant Board's guidance, or qualified counsel before you act.

Bill 97, the Helping Homebuyers, Protecting Tenants Act, 2023, received royal assent back in June 2023, but most of its changes to the Residential Tenancies Act (RTA) sat waiting on regulations. They were proclaimed into force on July 1, 2026, alongside a companion set of Landlord and Tenant Board procedural changes (drawn from Bill 60) that took effect the same day. If you are a landlord or a tenant in Ontario, several things changed that day. Here is what actually happened, drawn from the Landlord and Tenant Board's own operational update and the province's Bill 97 page.

Two quick "don't confuse these" notes before we start:

The credit-reporting changes that also arrived July 1, 2026 (the free Equifax credit lock, free monthly reports) are a different law, Bill 142. We cover those in our Bill 142 guide.
The much-discussed change that shortens the N4 non-payment notice period is not in this batch. That is a separate law (Bill 60) taking effect September 21, 2026, and we flag it at the end.

Penalties went up sharply

The maximum fines for RTA offences roughly doubled:

Individuals: from $50,000 to $100,000.
Corporations: from $250,000 to $500,000.

Ontario describes these as the highest such penalties in Canada. Two things to keep straight: these are the ceilings for prosecutions of offences (for example, a bad-faith eviction that gets prosecuted), not the compensation the Landlord and Tenant Board awards in an ordinary dispute. And they are maximums, not automatic amounts. The signal, though, is clear: the cost of getting an eviction or a notice wrong on purpose is now much higher.

Tenants can install air conditioning

This is a genuinely new tenant right. A tenant may install a window or portable air-conditioning unit even if their lease says they cannot, subject to safety and notice conditions (for example, giving the landlord written notice and installing it safely). Where the landlord pays for electricity, the rules allow a capped seasonal charge to offset the cost.

For landlords, the practical move is to stop relying on a blanket "no AC" lease clause and instead set out reasonable, safety-based expectations (secure mounting, no damage, proper notice), because the right to cool a unit now generally wins.

The LTB review window is shorter

If a party wants to ask the Landlord and Tenant Board to review one of its orders, the window to do so dropped from 30 days to 15 days. That cuts both ways: it moves matters along faster, but it also means that if an order goes against you and you have grounds to seek a review, you have half the time you used to. Diarize the deadline the day an order arrives.

Repayment plans now use a mandatory form

Where a landlord and tenant agree on a plan to repay rent arrears, the RTA now requires the use of the Board's Payment Agreement Form (under section 206). Handshake or ad-hoc repayment arrangements no longer fit the process cleanly. If you work out a catch-up plan with a tenant, put it on the official form.

Own-use and renovation evictions got stricter

Bill 97 tightened the two eviction routes that are most open to abuse.

N12 (landlord's or a family member's own use): the person who is supposed to move in now has to actually move in by a set deadline, reinforcing that an N12 has to be genuine.
N13 (demolition, major repair, or conversion): landlords face added obligations, including documenting that the unit must be vacant for the work, giving the tenant written progress updates, and honouring a grace period for the tenant to move back once the work is done. The window for a tenant to bring a bad-faith complaint was also extended.

If you use either notice, treat it as a paperwork-heavy, good-faith process. Our guide to the N12 form walks through the own-use route in detail.

What is NOT in this batch: the 7-day N4

A lot of landlords have heard that the N4 notice for non-payment of rent is dropping to 7 days. That is real, but it is not part of Bill 97 and did not happen July 1. It comes from a separate law, Bill 60 (the Fighting Delays, Building Faster Act, 2025), and is scheduled to take effect on September 21, 2026 (named by Ontario Order in Council 618/2026), when the notice period for monthly and yearly tenancies drops from 14 days to 7. Until then, the current 14-day rule still applies. We will cover that change on its own before it lands; for now, our N4 form guide reflects the rule in force today.

What landlords should do now

Update your lease templates. Drop blanket "no air conditioning" clauses in favour of safety-and-notice conditions.
Use the official Payment Agreement Form for any arrears repayment plan.
Treat N12 and N13 as good-faith, documented processes, and remember the person named in an N12 actually has to move in.
Tighten your deadlines. The review window is 15 days now, and the N4 period changes again in September. Calendar both.

Frequently asked questions

Did the N4 notice period change on July 1, 2026? No. The drop to 7 days is a different law (Bill 60) scheduled to take effect September 21, 2026 (Ontario OIC 618/2026). As of July 1, the monthly and yearly N4 period is still 14 days.

Can a tenant really install an air conditioner against the lease? Generally yes, as of July 1, 2026, subject to safety and notice conditions. A blanket lease ban no longer overrides the right.

Are the new $100,000 and $500,000 fines automatic? No. They are the maximum penalties for prosecuted RTA offences, decided case by case, not amounts the Board hands out in routine disputes.

Is this the same as the July 1 credit-lock change? No. That is Bill 142, a credit-reporting law. Bill 97 is about the Residential Tenancies Act. See our Bill 142 guide.

Managing rentals in Ontario means keeping notices, forms, and deadlines straight as the rules change. Habyn helps small landlords keep clean records and run consistent, compliant processes. See how Habyn helps landlords.