renting

Ontario's Rental Rules Change on September 21 - What Landlords and Sellers Need to Know

Unionville Rental Condo - Tridel

If you own a rental condo, a basement apartment or an investment townhouse anywhere in Markham, the rules that govern your relationship with your tenant change on Sunday, September 21.  The changes come from the second wave of Bill 60, the Fighting Delays, Building Faster Act, 2025, and they touch three things that come up constantly in my work: how quickly a landlord can act on unpaid rent, what happens at a hearing, and what it costs to reclaim a unit for your own family.  Here is what changes, and what I would do about it whether you are a landlord, a tenant, or someone buying or selling a home with a tenant in place.

The N4 window drops from 14 days to 7

The headline change is the notice for non-payment of rent.  Since the Residential Tenancies Act came into force, a landlord serving an N4 on a monthly tenant has had to give 14 days for the rent to be paid before an application could be filed with the Landlord and Tenant Board.  For any N4 served on or after September 21, that termination period becomes 7 days (Tribunals Ontario operational update, June 30, 2026; Bill 60, Royal Assent November 27, 2025).  Two details matter.  The 7-day period applies only to notices served on or after the 21st, and an N4 served before that date with a 7-day termination date is void, so if you are dealing with arrears right now, use the current form and the current 14 days.  And the notice is still only the first step; it opens the door to an L1 application, it does not end a tenancy on its own.

Persistent late payment gets a definition

Until now, "persistently late" was left to adjudicators to weigh case by case.  From September 21, the regulation defines it, and the working test is failing to pay rent within seven days of the due date on at least three occasions within a six-month period, subject to the conditions set out in the regulation (Ontario RTA amendments under Bill 60, effective September 21, 2026).  For a landlord in Markham whose tenant is chronically a week or two behind but always eventually pays, that is a meaningful change, because the pattern itself now has a legal name.  For tenants, it is a plain warning that paying on the 9th or 10th every month is no longer a harmless habit.

What changes at a hearing

Two procedural changes will matter more than they sound.  First, at a non-payment hearing, a tenant who wants to raise their own issues in response, such as maintenance complaints under section 82 of the Act, must first pay half of the arrears claimed, at least seven days before the hearing.  A tenant can still bring maintenance problems forward in a separate application, but the days of a repair dispute stalling an arrears hearing indefinitely are, in principle, over.  Second, and this is the change I want every downsizer and every parent with an adult child moving home to understand: when a landlord serves an N12 to reclaim a unit for their own use or a family member's use under section 48, the one month of compensation that has been mandatory is waived if the landlord gives at least 120 days' notice instead of the usual 60.  Give the tenant four months rather than two and the one-month payment falls away.

There is a wrinkle that matters if you are selling.  The waiver applies only to a landlord's own-use N12.  When a buyer purchases a tenanted property and needs the unit for themselves, that notice is served under section 49, and the one-month compensation still applies (Bill 60 implementation guidance, OntarioLandlord and PowerHouse Property Management summaries, 2026).  A seller who tells a buyer the tenant can be moved out for free is giving them the wrong information, and I would rather you hear that from me than at closing.

What I would do

If you are a landlord, update your forms and your calendar.  Use the new N4 only from September 21, keep a written record of every late payment from now on because the six-month clock on persistent lateness is now something you can prove, and if you have been thinking of taking a unit back for family, the 120-day route is worth the extra two months of patience.  If you are a tenant, pay on the day rent is due and keep your own records, because the margin for error has narrowed.  If you are buying or selling a tenanted condo in Markham, build the tenancy into the offer properly: the correct notice, the correct compensation, and a closing date that respects both.  I am not a lawyer and none of this replaces advice from one; for anything contested, a paralegal or lawyer who works at the Board every week is money well spent.

The rules governing Ontario rentals tighten on September 21, and the changes mostly favour landlords who keep good records and act correctly.  Update your forms, document your payments, and understand which N12 you are actually serving before you promise anyone a vacant unit. 


• Bill 60, Fighting Delays, Building Faster Act, 2025 (Royal Assent November 27, 2025): https://www.ola.org/en/legislative-business/bills/parliament-44/session-1/bill-60

• Tribunals Ontario operational update confirming the September 21, 2026 effective date (June 30, 2026): https://tribunalsontario.ca/ltb/

Insight: Rental Market Reform

Landlords and tenants can both agree that the current Residential Tenancies Act is a major barrier to an equitable and fair rental marketplace. The LTB is seen as a major headache for everyone involved, both prospective Landlords, Tenants and new homeowners. OREA has been proposing a report that outlines achievable updates and goals for a revised RTA, that truly encompasses the realities of today’s rental market.

The goal being to have a fair system that allows for more rental units to be available, with fair market pricing, tools to enable the removal of bad players from the system, and streamlining of the court system to reduce the unrelenting delays that are causing major financial harm.

OREA’s report is summarized below.

Creating Modern Legislation That Works

Ontario’s outdated Residential Tenancies Act, 2006 (RTA), no longer reflects the realities of today’s rental market. Modernization is essential to reducing tribunal backlogs, expanding rental supply, and creating fairer outcomes for both tenants and landlords.

Action-Ready

  • Create a dedicated N12 process for buyers’ personal use to speed up timelines and reduce delays.

  • Strengthen monitoring, enforcement, and penalties against bad-faith N12 evictions.

  • Develop clear, accessible resources to educate both landlords and tenants on their rights and responsibilities under the RTA.

  • Mandate the equal treatment of all individuals under the Condominium Act, 2016, to be inclusive of diverse families.

Long-Term

  1. Review and modernize the RTA to reflect today’s rental market.

  2. Reform rent control by implementing a phased-in approach to balance tenant protections with incentives for new rental supply.

2

Fixing the Broken Landlord and Tenant Board

Ontario’s Landlord and Tenant Board (LTB) is overwhelmed by backlogs and delays, eroding trust and discouraging new rental supply. Urgent reform is essential to restoring fairness, accessibility, and timely justice for both tenants and landlords.

Action-Ready

  1. Move away from the current digital-first strategy and restore in-person hearings as the default.

  2. Improve legal aid support for tenants.

  3. Remove financial barriers for tenant maintenance complaints filed in good faith.

  4. Establish a timely LTB application screening process to identify and remedy errors early.

Long-Term

  1. Find new opportunities to support mediation services between landlords and tenants at the LTB.

  2. Improve LTB adjudicator training, recruitment, and retention strategies.

3

Building a healthy and diverse housing supply

Ontario’s rental supply has fallen far behind demand, leaving families with too few affordable options. Tackling high costs, zoning barriers, and stalled purpose-built development is critical to ensure the market meets the needs of people in every stage of life.

Action-Ready

  1. Reduce government-imposed costs on new rental projects.

  2. Streamline the permit process for new construction.

  3. Promote and help scale innovative approaches to affordable housing development.

  4. Investigate legislative changes needed to provide rent-to-own programs in Ontario.

  5. Provide tax incentives for small landlords who provide new rental units in rapidly growing markets.

  6. Provide a rental renovation tax credit for smaller, independent landlords who invest in specific improvements to their rental properties while keeping monthly rent costs consistent.

Long-Term

  1. End exclusionary zoning across Ontario.

  2. Invest in building 99,000 community housing units over the next 10 years.

Fraud in Toronto's Residential Rental Marketplace

The residential rental market in Toronto, a city renowned for its multiculturalism and vibrant lifestyle, has long been a hotspot for real estate investment and urban living. However, amidst the gleaming high-rises and charming neighborhoods, a darker underbelly of fraud has emerged within the rental marketplace. Fraudulent activities within Toronto's residential rental market are a cause for concern, impacting both landlords and tenants and creating a need for increased awareness and vigilance.

The Rising Menace of Rental Fraud

Rental fraud in Toronto encompasses a range of deceptive practices that exploit the high demand for housing, creating lucrative opportunities for scammers. One of the most common forms of rental fraud involves fake listings. Fraudsters lift property information and photos from legitimate listings and post them on various online platforms, offering properties at prices that seem too good to be true. Unsuspecting tenants are then lured into submitting deposits or payments for these non-existent rentals.

Additionally, there are cases where fraudsters pose as landlords or property managers, conducting viewings and collecting application fees before disappearing without a trace. This type of fraud exploits tenants' eagerness to secure a desirable property in a competitive market.

Red Flags and Warning Signs

Several red flags can help tenants and landlords identify potential rental fraud:

  1. Unrealistically Low Prices: If a listing's rent is significantly lower than the market average for a similar property, it's essential to exercise caution.

  2. Pressure to Act Quickly: Scammers often create a sense of urgency, pressuring applicants to submit payments or personal information hastily.

  3. Lack of In-Person Viewing: Beware of landlords or agents who refuse to schedule an in-person viewing or offer excuses for their absence.

  4. Requests for Payment Before Signing: Legitimate landlords typically request a deposit or payment after signing a lease agreement, not before.

  5. Incomplete or Suspicious Contact Information: Be wary of listings with generic email addresses or phone numbers that don't match the property location.

  6. Requests for Personal Information: Fraudsters might ask for sensitive personal and financial information upfront, which should be a major red flag.

Preventing Rental Fraud

Both tenants and landlords can take steps to protect themselves from falling victim to rental fraud:

For Tenants:

  1. Research Extensively: Thoroughly research the property, its owner, and the local rental market to verify the legitimacy of the listing.

  2. Visit in Person: Whenever possible, conduct an in-person viewing of the property before committing to anything.

  3. Deal with Reputable Platforms: Use well-known and reputable online rental platforms, as they tend to have stricter verification processes.

  4. Check Landlord References: Ask for references or previous tenant contact information to confirm the landlord's credibility.

For Landlords:

  1. Screen Applicants: Implement a rigorous screening process for potential tenants, including background and credit checks.

  2. Document Everything: Keep records of all interactions, including emails, messages, and signed agreements.

  3. Meet in Person: Whenever feasible, meet potential tenants in person during viewings or lease signings.

  4. Use Secure Payment Methods: Encourage tenants to use secure payment methods for deposits and rent.

As Toronto's residential rental market continues to thrive, so does the menace of rental fraud. Tenants and landlords must remain vigilant and informed to protect themselves from falling victim to deceptive practices. By recognizing the red flags, conducting thorough research, and utilizing secure processes, both parties can contribute to a safer and more trustworthy rental marketplace.

Collaborative efforts from regulatory bodies, your favourite real estate professional, and technology platforms can help combat rental fraud, but you must be diligent in your research and tread carefully!

Are you a Landlord or prospective Tenant and need assistance with a rental property? Contact Us anytime!

Follow conventional Real Estate wisdom, or take a chance?

Conventional Real Estate wisdom states that you should sell and buy in the same market. This Globe and Mail artilcle focuses on a couple who are selling today at a good profitable price, then renting for a while with the expectation of returning to the market after the downturn in prices.

What if the market does not turn down? They could become perpetual Renters.

At first, she and her husband thought about selling in the traditionally strong spring market, and then buying another home during the traditional summer slowdown. Now, they see no rush to buy back in. Instead, they will rent a four-bedroom house for a one-year period in which they’ll look at their options

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/home-buying/ready-to-be-bold-sell-the-house-and-rent/article2418383/ via @globeandmail