New rental rating program launches in June in Toronto

Starting in June, apartment buildings and rental properties in Toronto will be required to display a sign indicating the property’s maintenance standards and quality of living.

Part of the City’s RentSafeTO program, the colour-coded signs will go up starting June 15 in an effort to help tenants find suitable housing and crack down on rental properties that don’t meet the City’s maintenance standards, including potential health and safety concerns.

Properties will be scored and the three colour-coded signs – green, yellow and red – will be issued on the following conditions:

Green (85–100%) Satisfactory: The building meets most or all City maintenance standards and has few or no violations.

Yellow (70–84%) Needs Improvement: The building meets some City maintenance standards and may have some violations.

Red (0–69%) Needs Significant Improvement: The building meets few City maintenance standards and may have several violations. The City says that a red sign does not mean the building is unsafe or uninhabitable and does not mean the building is closed, although the City will focus “targeted engagement” on buildings that have a red sign for two months in a row.

Building owners/managers will be required to post their colour-coded sign near the main entrance where tenants can easily see it, and must replace the sign within 14 days if notified that their building’s colour has changed.

Additionally, buildings will be required to inform current tenants and prospective tenants of the colour rating before a lease is signed, after a lease is signed, and once every year.

Initially approved last October, updates were made to the colour-coded signs program in the most recent City Council meeting, including weighing high-risk categories higher than other categories when determining a building’s score, and focusing engagement on buildings with a red sign for two months or more.

This “engagement” may include building audits, with the City focusing its attention on buildings with the greatest risks or ongoing issues.

“Half of Torontonians rent their homes,” said Mayor Olivia Chow. “When a landlord fails them… they deserve a city that shows up for them. That’s what we’re building.”

The colour-coded signs program is one of the City’s most recent initiatives to help renters and crack down on bad landlords.

The mayor’s 2026 budget includes funding for 73 officers for RentSafeTO, the City’s bylaw enforcement program that ensures apartment building owners and operators comply with building maintenance standards.

Image: City of Toronto