Toronto’s rules for Multi-Tenant Houses (Rooming Houses)

April 10, 2025

Multi-tenant housing or “rooming houses” are often the cheapest housing option available in the private rental market, making them an important source of affordable housing. On March 31, 2024, the City of Toronto put into place a new by-law to regulate multi-tenant housing across the city. 

This resource offers a range of practical information about multi-tenant housing that can be useful for tenants in Toronto and for service providers who support these tenants.

This resource provides information about:

  • What multi-tenant homes are and why a by-law is needed to regulate them.  
  • The by-law’s purpose and its potential impact on existing multi-tenant houses in the city. 
  • The responsibilities of multi-tenant housing operators to comply with the by-law and protect tenants’ rights.  
  • Tenants’ rights and where they can get further information and legal supports. 

What is a multi-tenant house?

A multi-tenant house, or rooming house, is where unrelated people occupy a building that has been divided so that tenants can rent individual bedrooms and share other rooms, such as a living room, kitchen, or bathroom. Under Toronto’s new Multi-Tenant Houses by-law, it is also defined as a building with four or more rooms occupied or intended for people who do not form a single household. These residences are also known as “rooming houses”, “boarding houses”, “lodging houses”, “dwelling rooms” or “single-room occupancies.”   

Under the new by-law, the definition also includes Personal Care Multi-Tenant Housing, where personal care services are provided to individuals as part of their tenancies (not including tenancies where services are provided by a regulated professional). This definition does not include group homes for youth, nursing homes, religious residences, student residences, tourist homes, hotels or refugee houses.    

Tenancies in multi-tenant homes are governed by the Residential Tenancies Act (RTA), except for tenants who share a kitchen or bathroom with the building owner or the person they pay rent to.  

Why did the City of Toronto create the new by-law?

Before the new by-law came into effect, multi-tenant homes were licensed in limited areas of the city, and only specific types of these homes were allowed in certain neighbourhoods. Overall, licensing was inconsistent, and multi-tenant homes were generally not permitted throughout Toronto.  

However, multi-tenant homes still existed and simply operated without licensing and oversight by municipal authorities. Unfortunately, tenants sometimes experienced unsafe living conditions in multi-tenant homes that were unregulated. For instance, some operators would avoid obtaining permits and safety inspections from municipal authorities when renovating these homes, because it could alert authorities that they were operating an unregulated multi-tenant home, which could put the home at risk of being shut down. Additionally, tenants were often hesitant to report unsafe conditions because they feared it could result in losing their housing.  

What does the by-law do?

The City of Toronto’s Multi-Tenant Houses by-law came into effect on March 31, 2024. It allows multi-tenant homes to exist as licenced, regulated buildings across Toronto. Some important parts of the by-law are: 

  • Requirements to comply with the Ontario Building Code and Ontario Fire Code.  
  • Enforcement and compliance programs, including annual building inspections.  
  • A Multi-Tenant Housing Licensing Tribunal, only for landlords to appeal a decision if they have not been granted a license to operate a multi-tenant home.  
  • A renovation program to provide funding and support to operators to do necessary work to make their building comply with the by-law.  

By providing clear rules, guidelines and supports, the City hopes that the by-law will encourage operators to create more multi-tenant homes – a critical stock of affordable homes – and preserve the ones that already exist. 

Additionally, the new Rental Renovation Licence By-law will cover multi-tenant housing in Toronto once it comes into effect in July 2025. 

What do operators of multi-tenant homes need to do to bring their properties into compliance with the by-law?

In Toronto, all new and existing multi-tenant houses must operate in accordance with the new by-law. Operators of existing properties must make renovations where necessary to ensure they comply with the new requirements. Beyond the safety requirements outlined above, the by-law also sets different limits on the number of units allowed in a multi-tenant house, depending on its location within the city (the number of units permitted ranges from 6 to 25). Additionally, it also mandates that properties provide one parking space for every three dwelling rooms. This number is rounded down, so a multi-tenant home with five rooms would require one parking space. It also requires that each building have at least one bathroom – with a sink, toilet, bathtub or shower – for every four dwelling rooms. More information about requirements can be found here: Multi-Tenant House Owners & Operators – City of Toronto 

The City has created the Multi-Tenant Houses Renovation & Repair Program, which provides funding to existing operators to help bring their buildings into compliance with the new by-law. If an operator receives this funding, they cannot apply for an Above Guideline Rent Increase (AGI) with the Landlord and Tenant Board related to the renovation.   

If an operator fails to comply with any of the by-law requirements, they can be convicted of an offense, and can be fined up to a maximum of $100,000. Operators must obtain and regularly renew their multi-tenant housing license, and the city can refuse, revoke or suspend their license if the operator violates any of the applicable by-laws. The City of Toronto has said that they will not close existing multi-tenant homes unless an immediate health and safety risk is identified during the initial implementation phase of the new by-law. 

What are operators’ responsibilities in multi-tenant housing?

Operators of multi-tenant homes that are governed by the RTA must:

How can tenants protect their rights and get help?


More information and resources:

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