Market Insight for September 18

A second set of rental rules in Ontario are set to take effect next week. Starting Sept. 21 under Bill 60 amendments, tenants who receive an N4 notice for overdue rent will have just seven days to pay what they owe, that’s down from 14 days. If the payment is not made within that time, the landlord can then file an L1 form with the Landlord and Tenant Board to evict them for non-payment.

The seven-day enforcement period is really about accountability. It makes it clear that rent is expected to be paid on time and that missed payments shouldn’t be allowed to build up over several months without action.

The new rules also clarify what is considered “persistent” late payment. This applies when a tenant fails to pay rent within seven days of the due date at least three separate times within six months. Having a clear definition also gives landlords better documentation if they need to take further action.

Also, if a tenant wishes to bring last-minute claims to the LTB at a hearing over late payments, Bill 60 dictates they must pay 50 per cent of the overdue rent before they can raise those issues. Those issues could be things like delayed or denied maintenance, illegal entry, or harassment.

The changes, however, mean little without faster hearing dates at the LTB.

A shorter notice period does not mean a faster eviction. It gets the landlord to the starting line seven days sooner. It doesn’t necessarily get them to the finish line seven days sooner.

Even with a seven-day N4, a landlord must wait for a hearing date and written decision before beginning the physical eviction process. The LTB currently says L1 applications, which seek both evictions and unpaid rent, are scheduled in three months on average.

According to LTB Landlord Paralegals, an L1 application for non-payment can take about three to five months, while the paperwork to deal with persistent non-payments can take five to eight months. Once the hearing concludes, the LTB may take an additional three to eight weeks to issue an eviction order.

Another change under Bill 60 amendments, if a landlord wants to move into their property or clear it for an eligible family member, they can choose between two legal paths starting Sept. 21.

With the updated rules, landlords can serve an N12 notice to end tenancy with at least 120 days’ notice (ending on the last day of a rental period), which waives the standard requirement to pay the tenant one month’s rent as compensation.

Alternatively, landlords can continue to use the existing 60-day N12 route but must pay the required one-month compensation.

At the same time, bad-faith evictions can carry serious financial consequences. Effective July 1, Bill 97 amendments raise maximum Residential Tenancies Act offence fines to $100,000 for individuals and $500,000 for corporations. Bad-faith N12 (personal use) and N13 (repairs and renovations) notices can also result in tenant compensation.

Effective July 1 under Bill 60, the window to file a request to review an LTB decision was slashed to 15 days from 30 days. This deadline applies to orders issued on or after July 1.

The change means both landlords and tenants must review board decisions immediately to catch clerical errors and appeal adverse rulings before the window closes permanently. Missed deadlines can jeopardize a party’s right to seek review.

Even when an eviction is granted with a monetary judgment for thousands in unpaid rent, collecting that money is a separate battle.

If a landlord wants to be reimbursed, they have to jump through additional hoops. They have to go to small claims court to enforce it. But if a tenant receives social assistance, has no job, no assets, and no bank account, there’s nothing they can collect.

Ontario’s new rules offer small landlords faster legal tools but the hope, ultimately, is they never need them.

Summary Changes to Tenant and Landlord Rules
• Shorter Eviction Grace Period: The notice period for landlords to file for eviction due to non-payment of rent drops from 14 days down to 7 days.
• Arrears Payment Barrier: Tenants who want to bring counterclaims (such as maintenance issues or harassment) to a late-payment hearing must first pay 50% of the alleged back rent.
• Personal Use Evictions: Landlords can reclaim a property for personal or family use with 120 days’ notice without being required to pay tenant compensation in certain self-contained unit arrangements.
• Reduced Appeal Window: The time allowed to appeal a decision from the Landlord and Tenant Board (LTB) is cut from 30 days down to 15 days.