When property damage occurs, the first question is often: who is responsible? In Ontario, landlords, tenants, and other parties must understand how to establish legal liability. Damage caused during a tenancy isn’t automatically negligence — it may simply be normal wear and tear, which landlords cannot charge tenants for.

Proving negligence requires evidence that someone failed to take reasonable care, resulting in damage beyond normal use. With the Small Claims Court monetary limit increasing to $50,000 on October 1, 2025, more landlords and tenants will be able to pursue meaningful recovery for substantial claims. Tim at MTS Paralegal Services helps clients gather the right evidence, present strong cases, and navigate Ontario’s legal process.

Understanding Negligence in Property Damage

Negligence occurs when an individual fails to act with the care a reasonable person would exercise in similar circumstances, and that failure causes harm. In Ontario, to prove negligence in a property damage claim, four elements must generally be established:

1. Duty of Care – The defendant owed a legal duty to act with reasonable care.
2. Breach of Duty – The defendant failed to meet that standard of care.
3. Causation – The defendant’s actions or inaction directly caused the damage.
4. Damages – Actual harm or property loss occurred as a result.

For example:

• A tenant who leaves a bathtub running and floods the unit below could be held negligent and responsible for the repair costs.
• A landlord who ignores a leaking roof, resulting in water damage to a tenant’s belongings, may also be liable for failing to maintain the premises under the Residential Tenancies Act, 2006 (RTA).

Normal Wear and Tear vs. Damage

Ontario law makes a clear distinction between normal wear and tear and undue damage.

• Normal wear and tear includes minor scuffs, faded paint, or light carpet wear — things expected over time.
• Undue damage involves harm caused by negligent, reckless, or willful actions by a tenant, guest, or landlord.

Tenants are only responsible for undue damage, not normal deterioration. Similarly, landlords cannot claim negligence for basic maintenance issues that occur with everyday living.

Evidence Needed to Prove Negligence

In property damage disputes, evidence is everything. Whether the matter is before the LTB or Small Claims Court, the outcome depends on the strength of your proof. Recommended evidence includes:

• Photographs and Videos: Clear, dated images showing the damage and its extent.
• Inspection Reports: Professional assessments to confirm the cause and timing of damage.
• Receipts and Invoices: Documentation of repair costs or replacement expenses.
• Witness Testimony: Statements from contractors, neighbours, or other individuals who observed the incident.
• Communication Records: Emails, texts, or letters showing complaints, warnings, or admissions of fault.
• Lease Agreements or Contracts: Clear documentation of each party’s obligations for repairs and maintenance.

Thorough, organized evidence strengthens your case and helps demonstrate who is truly responsible.

The Role of the Landlord and Tenant Board (LTB)

When property damage occurs during an active tenancy, the LTB is usually the correct forum to resolve the dispute. Under the RTA, the LTB can:

• Order tenants to pay for negligent or deliberate damage to rental property.
• Require landlords to compensate tenants for damage caused by the landlord’s failure to maintain the unit in a good state of repair.

For Former Tenants – L10 Applications

Since September 1, 2021, landlords have been able to use Form L10 – Application to Collect Money a Former Tenant Owes for claims after a tenant moves out.

• The L10 must be filed within one year of the tenant vacating the unit.
• It can include claims for rent arrears, unpaid utilities, and damages.
• If granted, the LTB’s order can be enforced through the civil court system, just like a judgment.

This process keeps most post-tenancy claims within the LTB, avoiding the need to go directly to Small Claims Court in many cases.

When to Use Small Claims Court

If the claim is outside the LTB’s authority, such as:

• When more than one year has passed since the tenant moved out,
• When the claim doesn’t fit into an RTA category, or
• When the total damages exceed what can reasonably be handled by the LTB, the landlord or tenant can file a claim in Small Claims Court.

Currently, Small Claims Court can hear cases up to $35,000, but this limit will rise to $50,000 on October 1, 2025, expanding access for larger disputes.

Small Claims Court can award monetary compensation only; it cannot issue eviction orders or enforce ongoing tenancy rights.

To succeed in Small Claims Court, the claimant must provide:

• A detailed claim showing the damages and amounts,
• The lease agreement,
• Proof of negligence and financial loss,
• And any related correspondence or documentation.

Judgments can be enforced through methods such as wage garnishment, bank account seizure, or property liens.

Why Legal Representation Matters

Property damage cases may seem straightforward, but disputes often arise over whether harm was caused by negligence or simply reflects normal wear and tear. Defendants may argue the damage existed before the tenancy, deny responsibility, or challenge the evidence.

A skilled legal representative can:

• Identify the correct forum — LTB or Small Claims Court — based on the claim’s timing and nature,
• Prepare and present strong evidence,
• Handle procedural requirements and deadlines, and
• Advocate effectively to secure compensation.

Tim at MTS Paralegal Services has extensive experience handling property damage claims for both landlords and tenants. With the upcoming increase to the Small Claims Court limit, Tim ensures that clients can pursue the full amount owed and receive proper guidance throughout the process.

For personalized legal support, contact Tim at MTS Paralegal Services at (226) 444-4882 or visit mtsparalegalservices.com.