Ontario has new rental rules: What renters and landlords should know

That doesn’t mean a tenant can be physically evicted in seven days. An N4 notice is the first step in the process, and a landlord still has to apply to the Landlord and Tenant Board (LTB) for an eviction order if the tenant doesn’t leave.

The change is one of several new rules taking effect this fall under Ontario’s Residential Tenancies Act (RTA). Other changes will affect tenants who repeatedly pay rent late, some landlord-use evictions and tenants facing major renovations.

Here’s what Ontario renters and landlords need to know about the changes, what they mean in practice and what hasn’t changed.

What changed on Sept. 21?

An N4 is the notice a landlord uses uses when a tenant has not paid rent on time. For most monthly or yearly tenancies, the minimum termination period is now seven days, down from 14 days.

The shorter notice period doesn’t eliminate the tenant’s opportunity to catch up on rent. If the tenant pays the rent owing by the termination date, the N4 can become void. If the tenant doesn’t pay and doesn’t leave, the landlord must apply to the LTB for an eviction order.

Real estate professional Vishal Kapoor has highlights this distinction, noting that the seven-day N4 period does not mean a tenant is automatically evicted within seven days.

Persistent late payments could become a bigger problem

The rules now define one situation in which a tenant is considered to have persistently paid rent late. If a tenant fails to pay within seven days of the due date on at least three occasions within a six-month period, that can meet the new definition.

That doesn’t mean three late payments automatically result in an eviction. The LTB can consider other circumstances, and the landlord still has to follow the proper process to end the tenancy. The new regulation also says that other circumstances can amount to a persistent failure to pay on time.

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For renters, the practical takeaway is that paying rent late repeatedly can now create a clearer basis for a landlord to seek to end a tenancy, even if the rent is eventually paid.

Some landlords can give 120 days’ notice for their own use

The rules around N12 notices have also changed.

An N12 is used when a landlord, certain family members or a purchaser requires a rental unit for their own use. Under the new rules, a landlord giving an N12 for their own use does not have to pay the tenant compensation or offer another acceptable rental unit if the notice is given on or after Sept. 21 and provides at least 120 days’ notice.

The realtors on the Ragona Sisters YouTube channel highlighted an important detail in their coverage of the changes: the new 120-day threshold does not simply replace the existing N12 notice period. Rather, it determines when a landlord can avoid the usual compensation requirement. MoneySense was able to independently confirm this.

The change does not apply when a purchaser is seeking the unit for their own use. If a landlord gives less than 120 days’ notice, the existing compensation rules continue to apply.

The basic requirements for a landlord’s own-use eviction also remain. The landlord must act in good faith, and the person named in the notice must normally move into the unit.

There is also a new protection against bad-faith use of an N12. If the landlord or other specified person does not take occupancy within 60 days of the date specified in the notice, the tenant can apply to the LTB and the notice is presumed to have been given in bad faith, subject to the landlord’s ability to rebut that presumption at a hearing.

Renovation rules are changing, too

Tenants facing major repairs or renovations have some new procedural protections.

For certain renovation projects where a tenant has a right to move back into the unit, landlords must now provide an estimated date when the work will be finished and notify the tenant if that estimate changes. The landlord must also tell the tenant when the unit is ready.

Once the work is complete, the landlord must generally give the tenant at least 60 days’ notice to reoccupy the unit. The tenant’s right to return comes with limits, including that the rent cannot be higher than what the landlord could have charged if the tenancy had not been interrupted.

There are also new requirements around certain N13 notices, which landlords use to end a tenancy for demolition, extensive repairs or conversion to another use. 

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What else should renters know?

Another change matters if a rent-arrears dispute reaches the LTB.

For applications filed on or after Sept. 21, a tenant who wants to raise other issues at a non-payment-of-rent hearing — such as maintenance or tenant-rights concerns — generally has to pay the landlord half of the rent arrears claimed in the application at least seven days before the hearing, although there are exceptions to the rule.

The tenant must also continue to give the landlord and the LTB a description of the issues they intend to raise at least seven days before the hearing.

This change doesn’t prevent tenants from raising other issues at an arrears hearing, but it adds a financial requirement for some tenants who want to do so.

What hasn’t changed

The most important distinction for renters is that a seven-day N4 notice is not a seven-day eviction notice. The N4 sets a termination date, and if the tenant pays what is owing by that date, the notice can become void. If the tenant doesn’t pay or leave, the landlord still has to apply to the LTB and obtain an eviction order before the tenant can be legally evicted.

The N12 changes also don’t give landlords a blanket right to remove tenants. The rules around good faith and intended occupancy still apply, and the new 120-day provision applies only to qualifying landlord own-use notices, not purchaser own-use notices.

For renters, the type of notice you receive matters. An N4, N12, and N13 have different purposes, requirements and deadlines, so the next step depends on which notice you’ve received.

What should renters do now?

The practical response to the changes is fairly straightforward:

• Pay rent on time whenever possible. Repeated late payments can now provide a clearer basis for a landlord to seek to end a tenancy.
• Don’t ignore an N4. The minimum notice period for most monthly and yearly tenancies is now seven days.
• Keep records. Save payment confirmations, receipts, notices and important communications with your landlord.
• Check the notice you’ve received. An N4, N12 and N13 have different purposes and requirements.
• Pay attention to LTB deadlines. If a dispute reaches the Board, missing a deadline can affect what you are able to raise or challenge.
  

The seven-day N4 is the most visible change, but it is only one part of a broader set of changes to Ontario’s rental rules. 

For renters, the practical takeaway is to understand how the new rules apply if a dispute arises. Keep records of rent payments and communications with your landlord, and make sure you understand any deadlines that apply to your situation. 

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About Steven Brennan

Steven Brennan is a Vancouver-based freelance writer and financial journalist covering personal finance, mortgages and housing, banking, credit and consumer economics. He holds an MA in World Literature from the University of Maynooth, Ireland. His work has appeared in publications including Money.ca, Canadian Mortgage Trends, Surex, LowestRates.ca and more.

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