What to know
- Several amendments to the Residential Tenancies Act come into effect on Monday, Sept. 21.
- The N4 grace period for tenants drops from 14 days to seven days under Bill 60.
- A tenant’s rent payments will be labeled as “persistently” late if they fail to pay rent three separate times within seven days of the due date, allowing landlords to file a N8.
- Landlords using an N12 for their own or qualifying family use can avoid the one-month compensation requirement by giving at least 120 days’ notice.
- Tenants who want to raise issues about their landlord during non-payment eviction hearings will have to pay 50 per cent of unpaid rent at least seven days before the hearing.
Changes affecting the N4 grace period, late rent, landlord-use evictions and what tenants can raise at eviction hearings take effect across Ontario on Monday.
Changes to N4 grace period
Tenants who receive a N4 from their landlord will only have seven days to pay back owed rent, a sharp decrease from the previously allotted 14 day notice.
This change to the non-payment of rent grace period is part of two amendments made to the Residential Tenancies Act last fall — Bill 60 (Fighting Delays, Building Faster Act) and Bill 97 (Plan to Protect Ontario Act)
Previously, when a landlord files a N4 for a yearly or monthly tenant who falls back on rent, the tenant has 14 days to pay owed rent. After 14 days, the landlord can then file a L1 to begin the eviction process.
Under the new rules dictated by Bill 60, the grace period has been shortened to just seven days. This means landlords can serve an eviction notice after only a week of non-payment.
However, just because landlords can file to evict a tenant faster does not mean they will evict a tenant faster. Landlords must still wait for a hearing date with the Landlord and Tenant Board and a written decision before proceeding with physically evicting the tenant.
Persistently late rent payments
Furthermore, a tenant’s rent payments will be labeled as “persistently” late if they fail to pay rent three separate times within seven days of the due date. Renters who are consistently late in paying rent can be served an N8 form, which allows landlords to file for an eviction notice.
Landlords using rentals for family members
Also coming into effect Sept. 21 are regulations on landlords housing their own family members in rental units they own.
Landlords must serve tenants with a N12, a notice to end tenancy at least 120 days before the scheduled termination date to avoid paying renters one month of rent as compensation. If a landlord serves a N12 under the current 60 day notice period or anytime within 120 days, then they still have to pay renters the one-month rent.
Tenants must pay 50 per cent of unpaid rent
Starting Sept. 21, tenants who want to raise concerns about their landlord’s failure to do maintenance, repairs, or curb harassment must pay up before getting the right to speak.
Tenants now have to pay 50 per cent of owed rent to a landlord at least seven days before a scheduled eviction hearing. This amendment is supposed to curb bad-faith claims and help landlords suffer fewer financial losses.
