Tenant's right of first refusal after N13 — how does it actually work?

Section 53 of the RTA gives the previous tenant first refusal to return. The mechanics:

1. **Written notice from the tenant.** The tenant must tell you in writing BEFORE moving out that they want first refusal, and provide an address where you can reach them later.
2. **Notice from you when ready.** When the unit is ready, you give written notice to the tenant at the address they provided. The tenant has a reasonable time (typically 60-90 days, but RTA says "reasonable") to accept and move back in.
3. **Same rent.** The rent is the LAST RENT the tenant was paying when they vacated, PLUS any annual rent-increase guideline amounts that would have applied during the renovation period. NOT market rent. NOT "renovated value."
4. **No AGI on the renovation alone.** The work that prompted the N13 doesn't itself justify an AGI against the returning tenant. You can apply for an AGI on capital expenditures, but only after re-renting.

If you fail to offer first refusal and re-rent at market: same T5 exposure as bad-faith N12. Damages can include rent differential for up to 12 months.

If the tenant doesn't respond within a reasonable time, document the attempted contact and you can re-rent.

VirtualPM Legal Shield handles N13 → re-rent compliance at the $199/month tier. Book a free 15-minute consult.