What to Do When Your Tenant Stops Paying Rent in Ontario

Few things are more stressful for a landlord than a tenant who stops paying rent. Your mortgage, insurance, and property taxes don’t pause because your tenant can’t or won’t pay. But in Ontario, the process for dealing with unpaid rent is governed by strict rules under the Residential Tenancies Act (RTA), and getting it wrong can cost you more time and money than the missed rent itself.

Here is what you need to know and what steps to take if your tenant stops paying rent in Ontario.

Step 1: Confirm the Situation

Before taking action, verify that the rent is actually late. Check your records to confirm the amount owed, the due date, and whether any partial payment was made. Sometimes rent is delayed by a banking issue or a miscommunication about payment method. A brief, professional message to your tenant asking about the status of the rent payment is a reasonable first step.

If the tenant acknowledges they can’t pay and offers a timeline for catching up, document the conversation in writing. A payment arrangement can sometimes resolve the situation without formal proceedings — but get any agreement in writing.

Step 2: Serve an N4 Notice

If rent remains unpaid, the formal process begins with an N4 Notice to End a Tenancy Early for Non-payment of Rent. Under the RTA, you can serve this notice the day after rent is due.

The N4 gives the tenant 14 days to either pay the full amount owed or vacate the unit. If the tenant pays everything owed (including any additional rent that comes due during the notice period) within those 14 days, the notice is voided and the tenancy continues.

Important details about the N4: it must be filled out correctly with the right amounts and dates. Errors on the form can result in it being dismissed at the Landlord and Tenant Board (LTB), forcing you to start over. The notice can be served in person, by mail (add 5 days for delivery), or slid under the door of the rental unit.

Step 3: File an L1 Application at the LTB

If the 14-day period expires and the tenant has neither paid nor moved out, you can file an L1 Application to Evict a Tenant for Non-payment of Rent at the Landlord and Tenant Board. There is a filing fee (check the LTB website for current amounts).

After filing, the LTB will schedule a hearing. Current wait times for LTB hearings vary significantly — in some cases, landlords have waited several months for a hearing date. During this period, the tenant remains in the unit and may continue to not pay rent, compounding your financial loss.

Step 4: Attend the LTB Hearing

At the hearing, you will need to present evidence of the unpaid rent, the N4 notice served, and any communication with the tenant. The adjudicator may issue an eviction order, or may grant the tenant additional time to pay (called a “conditional order”) depending on the circumstances.

If the tenant does not attend the hearing, the order is typically granted in the landlord’s favor. If the tenant attends and requests relief from eviction, the adjudicator has discretion to consider the tenant’s circumstances.

Step 5: Enforcement

If an eviction order is issued and the tenant still does not leave, the order must be enforced by the Sheriff’s office. You cannot change locks, remove belongings, or physically remove the tenant yourself — this is illegal regardless of what the LTB order says. The Sheriff’s office will schedule an enforcement date, which adds additional time to the process.

What You Should Never Do

Ontario law strictly prohibits landlords from taking matters into their own hands. You cannot change the locks, shut off utilities, remove the tenant’s belongings, enter the unit without proper notice, or harass the tenant into leaving. Doing any of these things can result in the tenant filing a T2 application against you, leading to fines, compensation orders, and significant legal costs.

How to Protect Yourself Going Forward

The best defense against non-payment is thorough tenant screening before the lease begins. Verifying income, checking credit, and contacting previous landlords catches most potential problems before they become yours.

Beyond screening, having a professional property management partner means non-payment issues are caught early and handled correctly from day one. At Catana Property Management, we handle all RTA-compliant notices, LTB filings, and tenant communication. Our Rent-Guard package also includes a rent coverage safeguard up to $1,000 to cushion the financial impact while disputes are being resolved.

Frequently Asked Questions

How quickly can I evict a non-paying tenant in Ontario?

The fastest possible timeline from the first missed payment to eviction enforcement is roughly 2-3 months, but in practice it often takes longer due to LTB hearing backlogs and potential tenant relief requests. This is why prevention through proper screening is so important.

Can I charge late fees on unpaid rent in Ontario?

No. The RTA does not permit landlords to charge late fees, interest, or penalties on late rent payments. Any lease clause including late fees is void and unenforceable.

What if my tenant pays partial rent?

You can still serve an N4 for the remaining balance. However, accepting partial payment and then trying to evict can complicate your LTB case. Document all payments and consult with a paralegal or property manager about the best approach for your specific situation.

Can I sue my tenant for unpaid rent after they leave?

Yes. If a tenant leaves owing rent, you can pursue the debt through Small Claims Court (for amounts up to $35,000) or through the LTB if you file within one year of the tenant vacating.