What changed
Brampton's Residential Rental Licensing (RRL) program started as a pilot in five wards (1, 3, 4, 5 and 7). On December 12, 2025 the City announced it would cover all ten wards from January 1, 2026, and extended the pilot for three years with annual reviews.
Who needs a licence
Owners who rent out residential property with one to four units, including a basement apartment in a house you live in. The licence is free for new applications and renewals.
What you need
- An application to the City of Brampton
- Proof of $2 million in liability insurance
- Completion of the City's online landlord education module
- A unit that meets property standards, fire and zoning rules (for a second unit, that means a registered legal second unit)
Fines
The City lists fines of $750, $1,250 and $1,500 for operating without a licence. Brampton also reported tougher by-law enforcement results in 2026, so expect inspections to continue.
What it means for investors
Licensing adds paperwork, not a fee, but it makes an illegal basement unit harder to rent. When you buy an investment property, confirm the second unit is registered, or budget the time and cost to make it legal before you count on that rent.
Source: City of Brampton news release. Rules can change; check the City's RRL page before you apply.
Talk to a Brampton broker: Sandeep Pawar, Broker, RE/MAX Gold Realty Inc., Brokerage, 2720 North Park Dr, Unit 50, Brampton. Call or text 647-569-9991. Service in English, Hindi, Punjabi, Urdu, Kannada and Telugu.
Questions people ask
Do I need a rental licence for my basement apartment in Brampton?
Yes. From January 1, 2026 Brampton's residential rental licensing covers all wards and applies to properties with 1 to 4 rental units, including basement apartments.
How much does a Brampton rental licence cost?
Nothing. The City made new and renewal licences free, but you need $2 million liability insurance and must complete an online landlord module.
What is the fine for renting without a licence in Brampton?
The City lists fines of $750, $1,250 and $1,500 for operating without a licence.
Figures come from the sources linked in the article. They change over time; check the latest numbers on the market report before you decide. This article is general information, not legal, tax or financial advice.
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