Tenant Failed To Pay Rent in Ontario: What Are My Options? 

Landlord & Tenant Law   |    Oct 04, 2024      | By: Harbir Singh

As a landlord, if a tenant fails to pay rent, this can be an incredibly challenging time. Understandably, it can cause an enormous amount of financial stress and uncertainty in your life. From being unable to make mortgage payments, to being unable to afford any needed repairs, or other expenses in your life. By understanding your options and the legal framework that surrounds your landlord-tenant relationship, it can assist you with navigating your options.

A Guide to Understanding Your Rights and Responsibilities

The relationship between a landlord and tenant in Ontario is governed by the Residential Tenancies Act (RTA). The RTA outlines the process you must undertake as a landlord, to receive the rent owed to you. Tenants are obligated to pay their rent to the landlord on the agreed-upon date, in the rental/lease agreement.

Below we will list the steps you need to take as a landlord, to act upon a tenant who is failing to pay rent.

Step One: Communication with Tenant Regarding Rent

When a tenant fails to pay rent, the initial step is to contact the tenant to inquire about the missed payment. Some tips regarding this initial step are:  

Ø  Do not delay communication: As soon as possible after the payment is overdue, you should contact your tenant. By doing so, it shows you are proactive and attempted to obtain the unpaid rent.

Ø  Understand the tenant’s circumstances: Certain life events, such as health issues, or the loss of employment can negatively impact a tenant’s financial situation. Show empathy if this is the case.

Ø  Try to reach an agreement: Explore options and whether the tenant will be able to pay the rent soon. Attempt to create a payment plan in writing.

Step Two: N4 Notice to End a Tenancy Early for Non-Payment of Rent

If, after completing step one, your tenant fails to respond, or fails to pay the unpaid rent, your next step should be to send them the N4 notice. More information on this process below:

1.      Complete the N4 Form accurately: Landlords can find this form on the Landlord and Tenant Board’s (LTB) website online. Ensure to fill the form out correctly, failure to do so can result in your case being dismissed at the LTB. It is advisable to use the services of a Paralegal in Ontario for Landlord Tenant Board matters, such as this.

2.      Serve the Notice to Your Tenant: To be able to apply to the LTB, you must serve the notice to your tenant either in person, by mail, or via email (if permitted). Landlords are required to keep a documentation record of when and how the notice was served on the tenant.

3.      Waiting Period: After serving the N4 Notice to your tenant, there is a period the tenant has, to pay the outstanding rent, or reply to the notice. In the case of a weekly tenancy, they tenant has 7 days to pay or respond to your notice, for a monthly or yearly tenancy, the tenant has 14 days to pay or respond to your notice.

Step Three: Apply to the Landlord Tenant Board (LTB) for eviction

In the scenario that the tenant fails to respond to the N4 notice or does not pay the outstanding rent within the prescribed time, now is your chance to apply to the LTB to help solve this issue. Applications you can make to the LTB for this are:

Ø  Evict Tenant: You can file an application to evict the tenant for non-payment of rent.

Ø  Payment of rent arrears: If you are not looking to evict the tenant, you can apply to the LTB for the tenant to pay the overdue rent.

Step Four: Attending the LTB

After your application is submitted, the Landlord Tenant Board (LTB) will notify the parties regarding the scheduling of a hearing date. To prepare for the hearing, see tips below:

Ø  Mediation: There is an option for mediation, where the landlord and tenant can try coming to an agreement, before the actual hearing takes place.

Ø  Evidence: Make sure to collect and submit all relevant evidence and follow the Rules of Evidence when doing so.

Ø  Presentation of Your Case: Ensure to clearly explain the situation to the Landlord Tenant Board (LTB) member, referencing your evidence to backup your claims.

Ø  A legal professional such as a Paralegal Near You, can help ensure your case at the LTB is successful.  

Step Five: The Final Decision

The Landlord Tenant Board (LTB) will make the final decision on your case. It could take 30-60 days to receive the final decision.

Contact HSB Legal Services

Navigating the Landlord Tenant Board (LTB) can be a complex task. Ensure you are putting the best case forward, to receive the outcome you desire. By contacting HSB Legal Services, you can have the peace of mind knowing your case is in the hands of a legal professional.

We serve all areas of Ontario, so whether you are looking for a paralegal in Toronto, paralegal in Vaughan, paralegal in Brampton, paralegal in Mississauga, paralegal in Scarborough, paralegal in North York, paralegal in Etobicoke, paralegal in Malton, paralegal in Rexdale, paralegal in Milton, paralegal in Oakville, paralegal in Niagara Falls, paralegal in Burlington, paralegal in Barrie, paralegal in Richmond Hill, paralegal in Downtown Toronto, paralegal in Oshawa, paralegal in Ajax, paralegal in Whitby, paralegal in Markham, or a paralegal anywhere in Ontario, we are here to serve you.