Canadian Housing Market Firming,
Government Support Remains Strong

While buyers absorb inventory and demand remains intact especially among first-time buyers, industry experts envision a continual shift to a more balanced market in the coming months. Home prices, which firmed in late winter, remained lower compared to last year but are showing clear signs of a potential rebound. With inventory levels still somewhat high, builders are proactively adjusting by slowing new residential construction starts, which now stand at their lowest level of the decade.

Spotlighting an interesting trend in the condo market, research suggests many of Canada’s older baby boomers and younger eco-boomers hold a preference for condos.

The low maintenance and smaller footprint are compelling points for the older generation, while the more affordable prices serve as an entry point for an aspiring younger generation of homeowners.

In a welcome surprise, April’s employment numbers showed an unexpected addition of nearly 36,000 new jobs compared to the anticipated loss of 50,000.

While this news is encouraging, the potential for future weakening in the labour market still poses a risk to overall housing demand.

Canada’s government remains firmly focused on supporting the housing market. The Bank of Canada cut the overnight rate to a record low and has made a commitment to keep rates at this level until mid next year. A commitment of this nature is unprecedented among central banks.

The Numbers That Drive Real Estate

1. Sales
2. Prices
3. Inventory
4. Mortgage Rates

According to the most recent data, existing home sales increased for the second month in a row. Home sales increased 7%, which built on the 10% gain the month before. The number of sold transactions now stands 18% above levels reported in January, when activity fell to the lowest level in a decade.

The monthly increases in activity were the most significant in British Columbia and Ontario. Sales were also up in the Northwest Territories, Manitoba, Quebec, and Newfoundland and Labrador.

Buyers are starting to take notice of lower prices, interest rates, and rising affordability conditions.

Average Home Price (in Thousands)

The pace of home price declines is tapering which is providing some glimmer of stabilization in the housing market. Home prices increased 2% from the previous month but is down 8% from the same time last year, which is the smallest year-over-year decline in six months.

The average home price currently stands at $288,641. The national average price continues to be skewed downward by lower activity in Canada’s more expensive housing markets, i.e., British Columbia, Alberta and Ontario which accounts for 67% of national activity. 7 out of 12 provinces and territories actually saw price increases.

Home Prices by Province
7 out of 12 Saw Increases

Inventory (Sales to Listing Ratio)

Market conditions moved toward balanced conditions due to increase in demand and fewer new listings. In the first quarter of 2009, there were 6% less homes entering the market compared to the previous quarter, which represents three consecutive quarters of declines in new listings.

Mortgage Rates

Average for: 25-Year Amortization,5-Year Term

Bank of Canada lowered its overnight lending rate to the lowest rate on record. As a result, mortgage rates decreased to 5.25% last month. Mortgage rates were 1.7 percentage points lower than the same time last year.

Recent Government Action

Bank of Canada Makes Historically Unprecedented Move

In an effort to stimulate the economy, the Bank of Canada has come to yet another historic cut in its interest rate policy on April 21. The Bank cut the overnight rate from .5 to .25%. This rate cut mostly influences traditional lending institutions but should also impact pricing in open markets as well.

The Bank has committed to keep rates as is until mid-2010. No known central bank has ever committed to anything of this nature, illustrating the Bank’s firm commitment to supporting the economy.

A Guide to the Residential Tenancies Act

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This guide is a summary of Ontario’s new Residential Tenancies Act (the Act). This new law came into effect on January 31, 2007. The Act sets out the rights and responsibilities of landlords and tenants who rent residential properties.

This guide is not a complete summary of the law and it is not intended to provide legal advice.  If you require more detailed information about the law, please see For more information at the end of this guide.

Information in this guide

• About Rent
• About Maintenance and Repairs
• About Entering the Rental Unit
• About Ending a Tenancy
• For More Information

Who is covered by this Act?

Landlords and tenants of most rental units

are covered by most of the rules in the Act. A rental unit can be an apartment, a house, or a room in a rooming or boarding house. The Act also applies to care homes, retirement homes, and sites in a mobile home park or land lease community.

Many of the rules about rent do not apply to:

• new rental buildings,
• non-profit and public housing,
• university and college residences.

But these units are still covered by most of the other rules in the Act about such things as maintenance and the reasons for eviction.

The Act does not apply if the tenant must share a kitchen or bathroom with the landlord.

About the Board

The Landlord and Tenant Board (the Board) resolves disputes between tenants and landlords. It is similar to a court.

Either a landlord or a tenant can apply to the Board. Their disputes can be worked out through mediation or adjudication.

In mediation, a Board Mediator helps a landlord and tenant reach an agreement they are both satisfied with.

In adjudication, a hearing is usually held. A Board Member makes a decision based on the evidence the landlord and tenant present, and then issues an order. An order is the final, written version of the Board Member’s decision.

The Board also provides landlords and tenants with information about the rights and responsibilities they have under the Act.

To contact the Board, see the section For More Information at the end of this brochure.

About tenancy agreements

The landlord and tenant can sign a written agreement when a new tenancy is entered into, or they can have an oral agreement. A tenancy agreement is often called a lease. The landlord must give the tenant a copy of any written lease.

The lease should not contain any terms that are inconsistent with the Act. If the lease does contain a term that is inconsistent with the Act, that term will not be enforced by the Board.

The landlord must also give the tenant the landlord’s legal name and address so that the tenant can give the landlord any necessary notices or documents.

Whether there is a written or oral lease, landlords must provide new tenants with information about the rights and responsibilities of landlords and tenants and about the role of the Landlord and Tenant Board. The landlord must give this information to the tenant on or before the start of the tenancy, in a form approved by the Board. The Board has a two-page brochure that landlords should use for this purpose.

About Rent

Rent for a new tenant

When a new tenancy is entered into, the landlord and tenant decide how much the rent will be for a rental unit and which services will be included in the rent (for example, parking, cable, heat, electricity).

In most cases, the rent cannot be increased until at least 12 months after the tenant moved in.

Rent deposits

A landlord can collect a rent deposit from a new tenant on or before the start of a new tenancy. Where the tenant pays rent by the month, the deposit cannot be more than one month’s rent; where the tenant pays rent by the week, the deposit cannot be more than one week’s rent.

The rent deposit can only be used as the rent payment for the last month or week before the tenant moves out. It cannot be used for anything else, such as repairing damage to the rental unit.

If the landlord gives the tenant a notice to increase the rent, the landlord can also ask the tenant to increase the rent deposit by the same amount.

A landlord must pay the tenant interest on the rent deposit every year. Under the Act, the interest rate is the same as the rent increase guideline (see the section Rent Increase Guideline).

Exception: For the first interest payment that the landlord has to give the tenant after January 31, 2007 (this is the date the Residential Tenancies Act became the law), a 6% interest rate applies for the months up to January 31, 2007.

Post-dated cheques and automatic payments

When a landlord and a new tenant agree to enter into a rental agreement, they usually discuss how the rent will be paid.

Although the landlord and tenant can agree that the rent will be paid by post-dated cheques or automatic payments (such as debits from a tenant’s account or by credit card), a landlord cannot require the tenant to pay by either of those methods.

Once the landlord and tenant have agreed on a method of payment, it cannot be changed unless both the landlord and tenant agree.

Rent receipts

A landlord must give the tenant a receipt for any rent payment, rent deposit or other charge, if the tenant asks for one.

A landlord must also give a former tenant a receipt if that person asks for one within 12 months after the end of their tenancy.

The landlord cannot charge a fee for giving a receipt.

Increasing a tenant’s rent

In most cases, the rent can be increased if at least 12 months have passed since the tenant first moved in or since the tenant’s last rent increase.

A landlord must give at least 90 days notice in writing of any rent increase. The proper forms for this notice (Form N1, N2 or N3) are available from the Board. See the section For More Information at the end of this guide to find out how you can contact the Board.

The most a landlord can increase the rent by, without asking the Board for approval, is the rent increase guideline (see the next section).

The rent increase guideline

The rent increase guideline is set each year by the Ontario Government. It is based on the Consumer Price Index.

Each year, the Government announces the guideline by August 31st for rent increases that will take effect on or after January 1st of the following year.

A guideline rent increase does not need to be approved by the Board. However, a landlord must get approval from the Board before they can charge an increase above the guideline.

Rent increase above the guideline

A landlord can apply to the Board for an increase above the guideline if:

• the landlord’s costs for municipal taxes and charges, and/or utilities (such as fuel, electricity or water) have increased significantly, or
• the landlord has done major repairs or renovations (these are called capital expenditures), or
• the landlord has operating costs for security services performed by persons who are not employees of the landlord.

Rent increases for capital expenditures or security services cannot be more than 3% above the guideline each year. If the landlord justifies an increase that is more than 3% above the guideline, the increase can be taken over three years, at a rate of up to 3% above the guideline per year. For increases in the cost of municipal taxes and charges, and/or utilities, there is no limit on the amount of rent increase that can be approved.

Some special rules apply to rent increases due to capital expenditures. For example, the landlord must make a copy of the supporting documents related to the application available to the tenants who are affected by the rent increase. Also, before passing the costs on to the tenants, the Board will determine whether the work was really necessary. As well, if the Board determines that there are serious maintenance problems in the rental unit or building, the Board may:

• dismiss the landlord’s application, or
• require the landlord to prove to the Board that the problems have been fixed before they can charge the approved increase.

The landlord and tenant can agree to a rent increase above the guideline if they agree that the landlord will do major repairs or renovations, buy new equipment for the rental unit, or add a new service for the tenant.

This agreement must be in writing. The proper form for this agreement (Form N10) is available from the Board. The highest increase that can be agreed to is 3% above the guideline.

Where the landlord and tenant make this kind of agreement, the landlord does not have to apply to the Board for approval of the increase.

A tenant has five days after signing this agreement to change their mind and tell their landlord, in writing, that they no longer agree to the rent increase.

When the rent should be reduced

A landlord is required to reduce the rent where:

• the utility costs go down after the landlord has increased the tenant’s rent by more than the guideline based on an order from the Board that approved the increase based on utility costs,
• a capital expenditure is fully paid for; this only applies to tenants who are still living in the same rental unit they were living in when the Board approved the rent increase based on the capital expenditure, or
• the municipal property tax is reduced by more than the prescribed percentage, resulting in an automatic rent reduction.

A tenant can apply to the Board to have their rent reduced if:

• the municipal taxes or charges on the rental property go down,
• the landlord reduced or removed a service they had provided to the tenant without reducing the rent, or
• the landlord did not keep a promise they made in an agreement to a rent increase above the guideline.

About Maintenance and Repairs

A landlord’s responsibilities

A landlord has to keep the rental property in a good state of repair. A landlord must obey all health, safety, housing and maintenance standards, as set out in any provincial laws or municipal bylaws.

This is true even if the tenant was aware of the problems when they agreed to rent the unit.

A tenant can apply to the Board if the landlord is not meeting their maintenance obligations. If the Board agrees that the landlord is not meeting their maintenance obligations, there are a number of remedies the Board can order. For example, the Board can order that the tenant does not have to pay some or all of the rent until the landlord does the repairs or that the landlord cannot increase the rent for the rental unit until any serious maintenance problems are fixed.

A tenant’s responsibilities

A tenant must keep their rental unit clean, up to the standard that most people would consider ordinary or normal cleanliness.

A tenant must repair or pay for the repair of any damage to the rental property caused by the tenant, the tenant’s guest or another person who lives in the rental unit. This includes damage in the tenant’s unit, as well as any common area such as a hallway, elevator, stairway, driveway or parking area.

It does not matter whether the damage was done on purpose or by not being careful enough – the tenant is responsible.  However, the tenant is not responsible to repair damage caused by normal “wear and tear”.  For example, if the carpet has become worn after years of normal use, the tenant would not have to replace the carpet.

A landlord can apply to the Board if the tenant has not repaired any damage. If the Board agrees that the tenant should be held responsible for the damage, the Board can order the tenant to pay the cost of repairing the damage or even evict the tenant.

A tenant should not withhold any part of the rent, even if the tenant feels that maintenance is poor or a necessary repair has not been done.  A tenant could be evicted, if they withhold rent without getting approval from the Board.

Vital services

A landlord cannot shut off or interfere with the supply of any of the following vital services to a tenant’s rental unit:

• heat (from September 1st to June 15th)
• electricity
• fuel (such as natural gas or oil)
• hot or cold water

More information about maintenance and repairs

For more information about maintenance read the Board’s brochure called Maintenance and Repairs.

About Entering the Rental Unit

Entry without written notice

A landlord can enter a tenant’s rental unit without written notice if:

• there is an emergency such as a fire,
• the tenant agrees to let the landlord in,
• a care home tenant has agreed in writing that the landlord can come in to check on their condition at regular intervals.

A landlord can enter a rental unit without written notice, between 8 a.m. and 8 p.m. if:

• the rental agreement requires the landlord to clean the unit – unless the agreement allows different hours for cleaning,
• the landlord or tenant has given a notice of termination, or they have an agreement to end the tenancy, and the landlord wants to show the unit to a potential new tenant (in this case, although notice is not required, the landlord must try to tell the tenant before entering for this reason).

Entry with 24 hours written notice

A landlord can enter the rental unit between 8 a.m. and 8 p.m., and only if they have given the tenant 24 hours written notice:

• to make repairs or do work in the unit,
• to carry out an inspection, where reasonable, in order to determine whether repairs are needed,
• to allow a potential mortgagee or insurer of the complex to view the unit,
• to allow a potential purchaser to view the rental unit (note: the Act also allows a registered real estate agent or broker to enter for this purpose if they have written authorization from the landlord),
• to allow an engineer, architect or other similar professional to make an inspection for a proposed conversion under the Condominium Act; or
• for any reasonable purpose allowed by the rental agreement.

The notice must include the reason why the landlord wants to enter the rental unit and must state what time, between 8 a.m. and 8 p.m., the landlord will enter the unit. If the landlord gives the tenant the correct notice, the landlord can enter even if the tenant is not at home.

About Ending a Tenancy

Renewing a lease

The end of a lease does not mean a tenant has to move out.  A new lease can be made or the landlord and tenant can agree to renew the lease for another fixed term period.

If a new agreement is not reached, the tenant still has the right to stay:

• as a monthly tenant, if they paid their rent by the month in the expired lease, or
• as a weekly tenant, if they paid their rent by the week in the expired lease.

Where the tenant stays on as a monthly or weekly tenant, all the rules of the former lease will still apply to the landlord and tenant. But the landlord can increase the rent each year by the amount allowed under the Act.

If a tenant wants to leave

A tenant must give their landlord written notice if they plan to move out. The proper form for this notice (Form N9) is available from the Board. The amount of notice that is required is based on the rental period, as follows:

A tenant and landlord can agree to end a tenancy early. The parties can make an oral agreement to end the tenancy, but it is best to have a written agreement.  A notice of termination does not have to be given by either the landlord or the tenant if there is an agreement to end the tenancy.

A tenant in a care home can end a tenancy early, by giving at least 30 days notice in writing to the landlord.

Assigning a tenancy and subletting

A tenant may be able to transfer their right to occupy the rental unit to someone else. This is called an assignment. In an assignment, a new person takes the place of the tenant, but all the terms of the rental agreement stay the same.

A sublet occurs when a tenant moves out of the rental unit, lets another person live there for a period of time, but returns to live in the unit before the tenancy ends. In a sublet, the terms of the rental agreement and the landlord-tenant relationship do not change.

A tenant must have the landlord’s approval for an assignment or a sublet, but, in either case, the landlord must have a good reason for refusing.

Rules about special tenancies

Some tenants do not have the right to assign their tenancy or sublet; for example, a tenant who is a superintendent, or a tenant who lives in subsidized, public or non-profit housing, or in housing provided by an educational institution where the tenant works or is a student.

For more information about assigning, read the Board’s brochure called How a Tenant can End a Tenancy.

Ending a tenancy by the landlord

A landlord can end a tenancy only for the reasons allowed by the Act.

The first step is for the landlord to give the tenant notice in writing that they want the tenant to move out. The proper forms a landlord must use for giving a notice to end the tenancy are available from the Board.

If the tenant does not move out after receiving the notice, the landlord can ask the Board to end the tenancy by filing an application. The Board will decide if the tenancy should end after holding a hearing. Both the landlord and the tenant can come to the hearing and explain their side to a Member of the Board.

Reasons for eviction based on the tenant’s conduct

The Act allows a landlord to give a tenant notice if the tenant, the tenant’s guest or someone else who lives in the rental unit either does something they should not do, or does not do something they should.

For example:

• not paying the rent in full,
• persistently paying the rent late,
• causing damage to the rental property,
• illegal activity,
• affecting the safety of others,
• disturbing the enjoyment of other tenants or the landlord,
• allowing too many people to live in the rental unit (“overcrowding”),
• not reporting income in subsidized housing.

In some cases, a landlord can give a tenant notice based on the presence or conduct of a pet the tenant is keeping, such as where a pet causes damage to the rental property.

Other reasons for eviction

There are some other reasons for eviction that are not related to what the tenant has done or not done. For example:

• the landlord wants the rental unit for their own use or for the use of an immediate family member or a caregiver,
• the landlord has agreed to sell the property and the purchaser wants all or part of the property for their own use or for the use of an immediate family member or a caregiver,
• the landlord plans major repairs or renovations that require a building permit and vacant possession,
• the landlord plans to demolish the rental property,
• in a care home that is occupied for the sole reason of receiving therapy or rehabilitation, the tenant’s rehabilitation or therapy program has ended,
• a tenant of a care home needs more care than the care home can provide, or no longer needs the level of care provided by the landlord.

For More Information

Contact the Landlord and Tenant Board

This guide provides general information only.  For more information, or to obtain copies of  the Board’s forms and publications, you may:

• call the Board at 416-645-8080 or toll-free at 1-888-332-3234, or
• visit your local Landlord and Tenant Board office.  A list of Board office locations can be found on our website, or you may call us at the numbers listed above.

Release date: January 31, 2007

How a Landlord Can End a Tenancy

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The Residential Tenancies Act (the Act) has rules for how a landlord can end a residential tenancy and evict a tenant.

  This brochure provides some general information about these rules.

It is not a complete summary of the law and it is not intended to provide legal advice.  If you need more information about the law, please see For More Information at the end of this brochure.

There are special rules for ending a tenancy in a care home.  These rules are not explained in this brochure.  For information about the rules relating to cares homes, see the Board’s brochure on Care Homes.

Information in this brochure

• Tenancy Agreements
• Agreement to End a Tenancy
• Notice to End a Tenancy
• Application to the Board
• Hearing
• Board Order
• For More Information
• Reasons a Landlord Can Apply to Evict a Tenant

Tenancy agreements

Tenancy Agreements

When a landlord rents a unit to a person, they enter into a tenancy agreement – a contract in which the tenant agrees to pay rent for the right to live in the rental unit.  This agreement may be in writing or it may be an oral or implied agreement.   A written tenancy agreement is often called a lease.

Fixed term tenancy

If the landlord and tenant agree that the tenancy will last for a specific period of time, this is called a fixed term tenancy.  This is because both the start and end date are set out in the tenancy agreement.  Most leases are for a fixed term, usually for a year.

Renewing a lease

The end of a fixed term tenancy or lease does not mean that the tenant has to move out or sign a renewal or new lease in order to stay.

The lease is renewed automatically on a month-to-month basis (if the rent is paid monthly) or week-to-week basis (if rent is paid weekly).  This means the landlord and tenant do not have to sign a new fixed term lease when the term of the lease runs out.  All the rules of the former lease will still apply to the landlord and tenant.

The landlord and tenant can also agree to renew the tenancy agreement for another fixed term period, or enter into a new lease.  If the landlord and tenant agree to enter into a new lease, the terms of the lease can only be changed in accordance with the Act.

Security of tenancy

Tenants have security of tenancy.  This means that a tenant can continue to occupy the rental unit until:

• the tenant decides to leave and gives the landlord proper notice that they intend to move out (see the Board’s brochure on How a Tenant Can End Their Tenancy for more information),
• the landlord and tenant agree to end the tenancy, or
• the landlord gives the tenant a notice to end the tenancy for a reason allowed by the Act, and
• • the tenant agrees to move, or
  • the tenant does not agree with the landlord’s notice, the landlord applies to the Board, and the Board issues an eviction order.

If the landlord gives a tenant notice to end the tenancy, the tenant does not have to move out.  The landlord must apply to the Landlord and Tenant Board (the Board) for an order allowing the eviction of the tenant.  The tenant has the right to go to a hearing and explain why they should not be evicted.

Landlord cannot lock tenant out of the rental unit

It is illegal for a landlord to change the locks to a rental unit or the building, without giving the tenant a key for the new locks.  The only exceptions are where:

• the locks are changed because the tenant has been evicted by the Sheriff, or
• the landlord is sure that the tenant has abandoned the unit.

It is an offence for a landlord to illegally lock a tenant out of their rental unit or the building.  If a landlord is convicted in Provincial Court under the Provincial Offences Act, they could be fined up to $25,000 if the landlord is an individual, or $100,000, if the landlord is a corporation.

If a tenant is illegally locked out and if the unit is still vacant, the tenant can apply to the Board for an order that requires the landlord to let the tenant back into the unit.

Agreement to End a Tenancy

Landlord and tenant can agree to end the tenancy

A landlord and tenant can agree to end the tenancy at any time, even during the term of a lease.  They can make an oral agreement to end the tenancy, but it is best to have a written agreement. This way, if there is any confusion about the agreement, both the landlord and tenant have a written copy to refer to.  Written agreements should be signed by all parties included in the agreement.

The Board has an Agreement to Terminate a Tenancy (Form N11) that landlords and tenants can use.

A landlord cannot require a tenant to agree to end a tenancy, or to sign, at the start of the tenancy, an agreement to end the tenancy at a later date.  (There are, however, certain exemptions for student housing and care homes.)

If tenant changes their mind

If a tenant agreed with the landlord to end the tenancy and later changes their mind, the tenant can ask the landlord if they will consent to a new agreement allowing the tenancy to continue.

The landlord can apply to the Board for an order to evict the tenant if the tenant refuses to leave as agreed to, unless the landlord and tenant make a new agreement.

Important: In this situation, the landlord can make an application to the Board for an eviction order without giving the tenant notice that they have done so.  The tenant will not be made aware of the application until they receive the eviction order from the Board.  The tenant can apply to the Board to stop the eviction if the tenant believes that the eviction order should not have been given.

Notice to End a Tenancy

Landlord must give proper notice

A landlord can end a tenancy only for the reasons allowed by the Act.

In most cases, the first step is for the landlord to give the tenant a notice in writing that they want the tenant to move out.

The proper forms a landlord must use for giving a notice to end the tenancy are available from the Board.  There are different notices for different reasons.

Landlords must use the correct notice form and fill it out completely and accurately to ensure that the tenant receives all the information that the Act requires.  If the landlord does not give the tenant all the information required by the Act, the notice may be void.  And, if the landlord files an application to evict the tenant based on an incomplete or incorrect notice, the application may be dismissed.

Reasons for ending a tenancy

The Act allows a landlord to give a tenant notice to end the tenancy early if the tenant, the tenant’s guest or someone else who lives in the rental unit does something they should not do, or does not do something they should.  This is sometimes called ending a tenancy “for cause”.

Some examples of “for cause” reasons for ending a tenancy are:

• not paying the rent in full,
• causing damage to the rental property,
• disturbing other tenants or the landlord, and
• illegal activity in the rental unit or residential complex.

There are also other reasons for ending a tenancy that are not related to what the tenant has done, or not done.  These are sometimes called “no fault” reasons for ending a tenancy.

Some examples of “no fault” reasons for ending a tenancy are:

• the landlord plans to do major repairs or renovations that require a building permit and the work cannot be done unless the rental unit is empty,
• the landlord requires the rental unit because the landlord, a member of the landlord’s immediate family or their caregiver wish to move into the unit, and
• the landlord has agreed to sell the property and the purchaser requires all or part of the property because the purchaser, a member of the purchaser’s immediate family or their caregiver wish to move into the unit.  (This reason for eviction only applies in rental buildings with three or fewer units and in condominiums.)

A complete list of the Reasons a Landlord can Apply to Evict a Tenant is provided at the end of this brochure.

When the landlord must give notice

Where a notice to end a tenancy must be given, the landlord must give the notice to the tenant before the termination date (the day the tenancy will end).  The amount of advance notice depends on the reason for ending the tenancy.

The list of Reasons a Landlord can Apply to Evict a Tenant provided at the end of this brochure shows the amount of advance notice required for each reason.

Tenant’s remedy

For some of the for cause reasons for ending a tenancy, a tenant can prevent the tenancy from ending by stopping the behaviour referred to in the notice, or by doing what the notice requests. This is a called a tenant’s remedy.  The notice explains what this is, and gives a deadline for the tenant to comply.  If the tenant does what the notice asks them to do by the deadline, the notice to end the tenancy is then void.  The landlord cannot apply to the Board to evict a tenant based on a void notice.

For those reasons for ending a tenancy that do not have a remedy, the tenant cannot do anything to void the notice.  However, this does not mean the tenant has to move out.

If the tenant does not move out after receiving a notice to end the tenancy, the landlord can file an application to the Board to end the tenancy. The Board will decide if the tenancy should end after holding a hearing.  Both the landlord and the tenant can come to the hearing and explain their side of the story to a Member of the Board.  (For information about when a landlord can apply to the Board see the Application to the Board section).

Application to the Board

Applying for approval to end the tenancy

A landlord can apply to the Board for approval to end a tenancy if:

• the landlord gave the tenant a notice to end the tenancy,
• the landlord and tenant have an agreement to end the tenancy,
• the landlord wants to evict an unauthorized occupant,
• the tenant gave the landlord a notice to end the tenancy,
• the tenant breached a condition of a Board order or mediated settlement and the order or settlement allowed the landlord to apply to end the tenancy,
• the tenant abandoned the rental unit, or
• the tenant was the superintendent and the superintendent’s employment has ended.

If there is a tenant remedy, the landlord cannot file an application to the Board unless the tenant fails to correct the behavior referred to in the notice, or fails to do what the notice requested, by the deadline set out in the notice.

Where the tenant does not have a remedy, the landlord can file their application as soon as they give the notice to the tenant.

Deadline to apply

In most cases, there is a deadline by which the landlord must file their application to the Board.

Most, but not all, landlord applications must be made within 30 days of the termination date set out in the notice.  However, there is no deadline for making an application to terminate a tenancy where the landlord has given the tenant a Notice to End a Tenancy Early for Non-Payment of Rent (Form N4).

The list of Reasons a Landlord can Apply to Evict a Tenant provided at the end of this brochure shows the deadline for filing each application.

Hearing

A hearing will be scheduled

In most cases, the Board will schedule a hearing to decide the landlord’s application.  However, the Board will not usually schedule a hearing if the application was made because the tenant:

• gave the landlord a notice to end the tenancy, or
• made an agreement with the landlord to end the tenancy, or
• breached a condition of a Board order or mediated settlement and the order or settlement allowed the landlord to apply to end the tenancy without notice to the tenant.

If a hearing is going to be held, it may be one of three types:

• an oral hearing, where the landlord and tenant appear in person before a Member (this is the most common type of hearing),
• a video conference hearing, where the hearing takes place using a video camera link between the Member, the landlord and the tenant, or
• a telephone hearing, where the hearing takes place using a telephone link between the Member, the landlord and the tenant.

The Board will decide which type of hearing you will have.

Landlord must inform tenant of the hearing

The Board will issue a Notice of Hearing and give it to the landlord.  The landlord must give a copy of the Notice of Hearing and a copy of their application to the tenant.  The deadline for giving the Notice of Hearing depends on the reason the landlord is ending the tenancy.

Information about the deadline for serving the Application and Notice of Hearing can be found in the Board’s brochure, Instructions for Landlords:  How to serve the Application and Notice of Hearing.

Tenant can dispute the application at the hearing

At the hearing, a landlord will have to prove that the tenant should be evicted.  The tenant can go to the hearing to explain why they should not be evicted, even if they have done something that is a reason for eviction.

Even though a landlord proves their case in an application to evict a tenant, the Board must consider all the circumstances of each case to decide whether or not the eviction should be refused or delayed.

Board Order

The decision

A Member of the Board will make a decision about the landlord’s application to end the tenancy and whether the tenant should be evicted or not.

The Member’s decision is always put in writing. This written decision is called an order.  The Board will mail a copy of the order to both the landlord and tenant, and their representatives, if any.

Only the Sheriff can evict a tenant

If a tenant doesn’t leave the rental unit by the termination date in the eviction order, a landlord cannot personally enforce the order (remove a tenant from a rental unit or change the locks).  See the section called Landlord cannot lock tenant out of the rental unit for more information.

An eviction order can only be enforced by the Court Enforcement Office (the “Sheriff’s Office”).  The Board does not enforce an order.

The landlord must file a copy of the Board order with the Sheriff’s Office to have the order enforced.  The Sheriff’s Office will charge the landlord a fee for the enforcement of the order.  Further information about enforcement can be obtained from the Sheriff’s Office.

For More Information

Other related publications

The Board also has brochures on these related topics:

• How a Tenant Can End Their Tenancy,
• Instructions for Landlords: How to Serve the Application and Notice of Hearing
• Important Information About Your Hearing

Contact the Landlord and Tenant Board

This brochure provides general information only.  For more information, or to obtain copies of the Board’s forms and publications, you can:

• call the Board at 416-645-8080 or toll-free at 1-888-332-3234, or
• visit your local Landlord and Tenant Board office.  A list of Board office locations can be found on our website, or you may call us at the numbers listed above.

If a Tenant Does not Pay Rent

The Residential Tenancies Act allows a tenant to be evicted if they have not paid their rent.

This brochure provides information about rent payments, and what can happen when rent is not paid.  It is not a complete summary of the law and it is not intended to provide legal advice.  If you require more information about the law, please see For More Information at the end of this page.

Information in this brochure:

• About Rent Payments
• What a Landlord Can Do if a Tenant Does Not Pay Rent
• • Give Tenant Notice to Move
  • File an Application to the Board
• What a Tenant Can Do if the Landlord Applies to the Board
• • Pay everything that is owed
  • Work out a payment plan
  • Go to the hearing
• At the Hearing
• For More Information

About Rent Payments

Tenancy agreement should be clear

When a landlord agrees to rent a unit to a person, the following information about rent payments should be made clear:

• the day that rent payments are due,
• how each rent payment is to be delivered to the landlord, and
• the acceptable methods for paying the rent.

Paying rent on time

It is very important that rent payments are made on time.

The rent is late if the full amount is not paid by midnight on the day it is due.  A landlord does not have to accept partial payment of rent.

If partial payment is accepted, the landlord can still take steps to collect the rest of the rent that is owing, including serving a notice that asks the tenant to pay the rent they owe, or move out of the unit.

Delivering the rent

In most cases, the tenant must deliver the rent payment to a place agreed to or set by the landlord.

This might be to the landlord’s residence or place of business.  In a larger building, the tenant might be required to deliver the rent payment to the superintendent of the building.

If a rent payment is mailed, the tenant should mail it far enough in advance so that it gets to the landlord by the due date.  The tenant should allow at least five days for delivery.

Once a decision is made about how rent payments should be delivered, it cannot be changed unless both the landlord and tenant agree.

How the rent payment is made

When a landlord and a new tenant agree to enter into a rental agreement, they usually discuss how the rent will be paid.

Payments are usually made by either cash or cheque.  If rent payments are made in cash, tenants should make sure to get a rent receipt from their landlord.

Although the landlord and tenant can agree that the rent will be paid by post-dated cheques or automatic payments (such as debits from a tenant’s account or by credit card), a landlord cannot require the tenant to pay by either of these methods.

Once a method for making rent payments has been decided, it cannot be changed unless both the landlord and tenant agree.

Rent receipts

A landlord must give the tenant a receipt for any rent payment, rent deposit or other charge, if the tenant asks for one.

A landlord must also give a former tenant a receipt if that person asks for one within 12 months after the end of their tenancy.

A rent receipt must contain the following information:

• the address of the rental unit,
• the tenant’s name and the landlord’s name,
• the amount paid,
• the date the payment was made,
• what the payment was for (such as arrears, rent, rent deposit, etc.), and
• the signature of the landlord or the landlord’s agent.

The landlord cannot charge a fee for giving a receipt.

Withholding rent

A tenant should not withhold any part of the rent, even if the tenant feels that maintenance is poor or a necessary repair has not been done.  A tenant could be evicted, if they withhold rent without getting approval from the Board.

For more information on this topic, see the brochure on Maintenance and Repairs.  This brochure is available from the Board.

What a Landlord Can Do if a Tenant Does Not Pay Rent

Landlord options

If a tenant does not pay their rent:

• The landlord can give the tenant a notice to pay the rent they owe or move.  If the tenant does not pay or move in response to the notice, the landlord can apply to the Board for an order to evict the tenant and to collect the rent that the tenant owes.

OR

• The landlord can apply to the Board only for an order to collect the rent that the tenant owes, and not ask the Board to evict the tenant.

Give Tenant Notice to Move

A landlord can give the tenant notice to move

If a tenant does not pay the full rent by the end of the day that it is due, a landlord can ask the tenant to pay the money they owe or move out of the rental unit.

The landlord must give the tenant a notice in writing, in a form called a Notice to End a Tenancy Early for Nonpayment of Rent (N4).  A copy of this form is available from the Board.

A Notice to End a Tenancy Early for Non-payment of Rent (N4) tells the tenant:

• how much rent the landlord believes the tenant owes,
• the date that the landlord wants the tenant to pay the overdue rent by (this is called the termination date), and
• that if the tenant does not pay the rent or move by the termination date in the notice, the landlord can apply to the Board to evict the tenant.

Notice will be void if tenant pays

If the tenant pays all the rent they owe before the landlord files an application to the Board, the N4 notice to end the tenancy is void and the tenant does not have to move.

The amount the tenant must pay to void the notice is:

• the amount of arrears in the N4 notice, plus
• any additional rent payments that have come due after the notice was given to the tenant.

For example: A tenant did not pay May’s rent and the landlord gave the tenant an N4 notice with a termination date of June 4th.  If, on June 2nd, the tenant wants to pay the landlord everything they owe to void the notice, the tenant must pay the rent for the months of May and June.

File an Application to the Board

Landlord may apply to the Board to evict the tenant

If the tenant does not pay the full amount of rent owing, or they do not move out by the termination date in the notice, the landlord can apply to the Board for an order that:

• requires the tenant to pay all of the money they owe, and
• allows the tenant to be evicted, unless the tenant voids the order by paying all the money they owe.

The landlord must apply using the proper form (L1).  It is called an Application to Evict a Tenant for Non-payment of Rent and to Collect Rent the Tenant Owes.  This form is available from the Board.

Note: The earliest day this application can be filed is the day after the termination date in the notice and the tenant must be in possession of the unit at the time the application is filed.

Landlord may apply to the Board just for the rent owed

If the landlord does not want to ask the tenant to move, they can apply to the Board only for an order requiring the tenant to pay the money they owe.  In this case, the landlord would not have to give the tenant a notice to end the tenancy.

The landlord must apply using the Application to Collect Rent the Tenant Owes (L9) form.  This form is available from the Board.

Note: This application can only be filed if the tenant is still in possession of the rental unit.

The Board will schedule a hearing

If the landlord files an application with the Board, a hearing will be scheduled.

The landlord, or someone acting on behalf of the landlord, must give the tenant a copy of the application and the Notice of Hearing that tells the tenant when and where the hearing will be held.  These documents must be given to the tenant at least 10 days before the hearing.

It is important that both the landlord and tenant go to the hearing.

What a Tenant Can Do if the Landlord Applies to the Board

Tenant Options

If the landlord files an application with the Board because the tenant has not paid their rent, the tenant can do one of the following:

• pay everything they owe,
• work out a payment plan with the landlord and file a copy of the agreement with the Board or
• go to the hearing.

Pay everything that is owed

If the tenant agrees with the amount that the landlord says they owe, the tenant can pay everything they owe before the Board issues an order.  (The Board usually issues an order after holding a hearing.)

In this case, the amount the tenant must pay includes:

• the amount the landlord is claiming in the application (this includes the landlord’s $170 application fee) plus
• any new rent that came due after the application was filed.

If the tenant pays everything to the landlord, they should make sure to get a receipt.

Once everything has been paid, the tenant should contact the Board to see if the hearing has been cancelled.  If it has not been cancelled, the tenant needs to go to the hearing.

If tenant disagrees with the amount the landlord is asking for

If the tenant disagrees with the amount the landlord is asking for, they can talk to the landlord to see if the landlord will agree with the amount the tenant thinks they owe.

If the landlord is not willing to agree, the tenant should go to the hearing to explain why they disagree with the amount that the landlord is claiming in the application.

Work out a payment plan

If the landlord applies to the Board and the tenant cannot pay everything they owe right away, they can contact their landlord to see if the landlord is willing to work out a payment plan.

If the tenant and landlord reach an agreement, the tenant or the landlord can file a copy of the agreement with the Board prior to the hearing.  The Board can issue an order based on the payment plan they have agreed to.  If the Board issues an order, the hearing will be cancelled.

The Board has a Payment Agreement form that can be used.

If the landlord is not willing to work out a payment plan, the landlord and tenant will need to go to the hearing.

Go to the hearing

The tenant can go to the hearing to challenge the landlord’s application.  The date, time and location of the hearing are shown on the Notice of Hearing, which the tenant received from the landlord.

Mediation services

The Board offers mediation services to landlords and tenants on the day of the hearing at most hearing locations.

In mediation, a Board Mediator talks to the landlord and tenant to see if they can come to an agreement to settle some or all of the issues in the application.  If all of the issues are settled a hearing does not need to be held.

Mediation is voluntary – which means that both the landlord and tenant must agree to mediate in order for mediation discussions to take place.

For more information about mediation, see the brochure called Mediation by the Board.  This brochure is available from the Board.

At the Hearing

What the Board Member will do

A Member of the Board is the person in charge.  The Member will listen to both parties and make a decision about the application and other issues raised at the hearing.

More detailed information about the hearing process can be found in the brochure called Important Information About Your Hearing.  This brochure is available from the Board.

What the landlord can do

The landlord can explain why the Board should order what was asked for in the application.  The landlord may discuss such things as:

• the tenant’s failure to pay rent, and
• how much money the landlord believes the tenant owes.

The landlord can also respond to any other issues that the tenant raises at the hearing.

What the tenant can do

The tenant can respond to the issues in the landlord’s application, and explain why the landlord should not get what they asked for.  For example, if the tenant disagrees with the amount of rent the landlord claims they owe or if the tenant needs more time to pay the rent, they can raise these issues.

In addition, the tenant can also raise any other issues that they could have raised if they had filed their own application with the Board. This means that if the tenant has concerns about issues such as disrepair, harassment or the lawfulness of their rent, they can raise them at the hearing and the Board can make an order to remedy those issues if appropriate.

The Board encourages tenants to tell their landlord before the hearing if they are going to raise issues about their tenancy at the hearing.  A tenant can do this in writing, or by talking to the landlord in person or by phone.  This helps to ensure that hearings can proceed smoothly.  A tenant, however, is not required to tell their landlord ahead of time about any additional issues they want to bring up at the hearing.

For more information on this topic, see the brochure on Issues a Tenant Can Raise at a Hearing for a Landlord’s Application for Non-payment or Rent (Form L1 or L9).   This brochure is available from the Board.

A Member may delay or refuse eviction

If the landlord is applying to evict the tenant, the Member will consider all the information presented by the landlord and tenant.  The Member will decide if the eviction of the tenant should be refused (provided that this would not be unfair to the landlord).  If the Member decides the tenant should be evicted, they will also consider whether the tenant should be given more time to pay the amount owing or move.

For More Information

Other related publications

The Board also has brochures on these related topics:

• Important Information About Your Hearing
• Issues a Tenant Can Raise at a Hearing about a Landlord’s Application for Non-payment of Rent (Form L1 or L9)
• Maintenance and Repair
• Mediation

Contact the Landlord and Tenant Board

This brochure provides general information only.  For more information about the law, or to obtain copies of the Board’s forms and publications, you may:

• call the Board at 416-645-8080 or toll-free at 1-888-332-3234, or
• visit your local Landlord and Tenant Board office.   For a list of Board office locations visit the Board’s website, or call the numbers listed above.

Release date: Revised April 6, 2009

AKA -- Help -- We can’t pay our mortgage!

Because it’s not all about selling houses . . .

Recently, I was approached by someone who was in trouble with their mortgage and asked if there was anything I could do to help them. We talked for a while and I learned that their mortgage had finished 4 months earlier, and they could not get a renewal on their mortgage because of some issues with the tax man. They had tried every avenue they could think of, and no matter what they did, the doors were getting closed in their face.

I work with a number of investors, and thought that I may be able to find an investor to buy their home, and they could stay there as tenants, with an option to buy their home back in a few years, once they had gotten their problems with the tax man sorted out.

I went through my invesotr list, and was not able to find someone to get into the situation due to the emotional charge around things. Investors like to keep things very numbers-related, so this was understandable to me.

I was wondering how else I could help them out, and was talking with a colleague in my office when we came up with another investor who might possibly be interested in the opportunity.

Sure enough, we were able to negotiate a deal that allowed the family to stay in their home, and the investor to make a good investing decision. It wasn’t the easiest of transactions, for anyone involved, and the paycheque for me was extremely minimal, but we managed to ‘git her done’ and keep a family in their home, which was the important thing.

I tell you thisd because there are things that I can do to help you, or people you might know, who are in trouble, or about to be in trouble, with their mortgage. A great explanation of some of the options available are outlined in the 3 short videos below:

I have numerous stories of families we have helped stay in their home when they are in mortgage trouble, as well as people where we couldn’t keep them in their home, but we were able to negotiate an agreement with their lender and mortgage insurer so that their credit history was not totally destroyed and they could get back into the housing market in a couple of years.

The most important thing to remember when you have even a hint that you may be getting in trouble with your mortgage is to take action immediately. DO NOT WAIT UNTIL YOU CANNOT PAY YOUR MORTGAGE; DO NOT WAIT UNTIL YOU ARE LATE IN YOUR PAYMENTS; IF  you are late, the chances that we can help you diminish greatly, because the programs available to you mostly require you to be current on your mortgage.

In the news these days, we are hearing lots of stories of factory closings and layoffs of thousands of workers. It is highly probable that a number of these people will find it increasingly more difficult to make their mortgage payments. NOW is the time for these people to speak with me. Even if there is no immediate danger of payments being missed, the wheels can be put in motion to have a certain number of payments skipped, or payments reduced. THERE ARE MANY OPTIONS, BUT ONLY IF YOU TAKE PREVENTATIVE MEASURES.

I know that it is embarassing to talk to someone about the financial challenges you may be facing, but surely it is better than having to give up your family home that you have worked so hard to own and build your equity in.

You have nothing to lose by talking with me about this, and everything to gain. Our conversation will, of course, be kept completely confidential, and there is no charge for the information and assistance I provide you.

I am very passionate about helping people stay in their home; it doesn’t matter to me whether I helped them buy their home or not. I see it as a sort of moral duty to put my considerable expertise to good use, and I consider it a privilege to be in a position to non-judgementally help those who need it.