What to know
- The new rules take effect Sept. 21, following an earlier round of changes that came into effect July 1.
- Tenants who miss rent will have less time to pay: the N4 deadline for monthly and yearly tenants will drop from 14 days to seven days.
- Three late payments within six months could qualify as “persistent late payments” if the tenant fails to pay within seven days of the rent being due.
- N12 compensation rules are changing in some circumstances, while new provisions are intended to strengthen protections against bad-faith own-use evictions.
- New rules will also affect what tenants must do to raise certain issues during non-payment eviction hearings, while additional requirements are coming for renovictions.
A significant set of rule changes will affect Ontario renters starting in September, from shorter notice periods for unpaid rent to new rules governing eviction hearings, persistent late payments and landlord compensation.
The Ontario government is amending the Residential Tenancies Act through Bill 60 and Bill 97, with incoming changes to the rights and responsibilities of landlords and tenants.
While the first provisions have been in effect since July 1, a second batch of changes will apply on Sept. 21.
The changes do not mean landlords can simply remove tenants themselves. Evictions in Ontario still generally go through the Landlord and Tenant Board, which determines whether an eviction order should be issued. The new rules instead change several of the timelines, requirements and procedures leading into that process.
Shorter N4 notice period
The deadline for eviction following missed payments is about to get shorter.
Up until now, if yearly or monthly Ontario tenants miss rent, they can receive an N4, which establishes a minimum 14-day deadline for payment. If they fail to pay by the deadline, their landlords can then file an L1 application to evict them for non-payment and collect the owed amount.
But starting Sept. 21, the N4 deadline is being cut in half, with tenants having only seven days to pay their missed rent until the landlord is allowed to file an L1.
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Persistent late payments
The province is also introducing a more clear definition of “persistent late payments.”
If a tenant is persistently late with rent payments, landlords can file an N8 form, which is an official legal notice that landlords can use to start an eviction. Until now, Ontario didn’t have a clear definition of what “persistent late payments” consisted of.
However, under the rules coming into effect on Sept. 21, the province is introducing a clearer definition, which establishes that a tenant is considered to have persistent late payments if they fail to pay within seven days that it’s due on three separate occasions under a six-month period.
This allows landlords to have a clearer benchmark to determine when to file an N8.
No compensation for longer move-out notices
Tenants might also no longer be eligible to receive compensation if their landlord ends their tenancy early, depending on how much notice they give.
Until now, a landlord could end a tenancy early if they or a close family member were moving in. To do that, they have to file an N12 form, and give at least 60 days’ notice and one month of rent as compensation.
Starting Sept. 21, they will no longer need to pay compensation if they give at least 120 days’ notice.
At the same time, the province is adding more protection against bad-faith N12 filing, by requiring that themselves, a family member or purchaser move in by 60 days after eviction. If they fail to do so, they might need to offer compensation to the previous tenant or be subject to fines.
Tenants will need to pay 50% of arrears
One of the ways tenants can avoid eviction after an L1 application is filed is to pay all arrears by their hearing in front of the Landlord and Tenant Board (LTB). However, this was not a requirement.
During these hearings, tenants also have an opportunity to raise issues, including lack of maintenance, illegal entry, harassment, or any other conflicts with the landlord.
But starting Sept. 21, tenants are going to be required to pay at least 50 per cent of the arrears claimed in the L1 application by at least seven days before the hearing in order to raise any issues.
Otherwise, they can still file separate applications about issues with the landlord.
Renoviction new rules
Another layer of protection added by the province includes new rules about “renovictions.”
An Ontario landlord can end a tenancy early by filing an N13 form if they plan to demolish or do extensive repairs to their property. To do that, they must give at least 120 days’ notice.
Starting Sept. 21, they will also need to provide updates about the renovations, including the estimated completion date, any changes to a completion date, and information about when the unit is ready.
If they fail to do so, tenants can seek compensation through the LTB.
