In Ontario, the Residential Tenancies Act, 2006 (RTA) governs landlord-tenant relationships, including how rent payments must be handled. Under the RTA, rent is due on the exact date stated in the lease agreement, most commonly the first of the month.

If rent is not paid on time and in full, it’s immediately considered late rent and a breach of the tenancy agreement. While a single late payment might not trigger eviction, persistent arrears or ongoing late payments can lead to formal action through the Landlord and Tenant Board (LTB).

For landlords, understanding the correct legal process is crucial. Acting outside of these rules can result in delays, lost rent, or even dismissal of an eviction application.

Addressing Non-Payment of Rent

When rent remains unpaid, landlords must begin with the proper notice and forms. The first step is issuing Form N4 – Notice to End a Tenancy Early for Non-Payment of Rent.

For monthly or yearly tenancies, the tenant must be given at least 14 days to either:

• Pay the full outstanding rent, or
  
• Vacate the rental unit by the termination date.

If the tenant pays the full arrears before the termination date, the N4 becomes void, and the tenancy continues. Partial payments do not automatically void the notice unless both parties agree in writing.

If full payment is not received by the deadline, the landlord may proceed by filing an L1 Application to Evict a Tenant for Non-Payment of Rent and to Collect Rent the Tenant Owes with the LTB.

Persistent Late Payments and Form N8

Eviction isn’t limited to unpaid rent. Even when tenants eventually pay, habitual late payments can disrupt the landlord’s ability to manage their property.

In these cases, the landlord may issue Form N8 – Notice to End a Tenancy at the End of the Term for Persistent Late Payment of Rent.

Key points for Form N8:

• Notice period: The landlord must provide at least 60 days’ notice, ending on the last day of the rental period (for example, the end of the month for monthly leases).
  
• Detailed documentation: The notice must list specific dates when rent was due and when it was paid late.
  
• Pattern of lateness: The LTB expects evidence of a clear, ongoing pattern — not just occasional late payments.
  

After serving a valid N8, the landlord files an L2 Application to End a Tenancy and Evict a Tenant if the problem persists.

The LTB Hearing Process

Both the landlord and tenant will attend a hearing before the LTB. The landlord must prove:

• The notice was served correctly.
  
• The arrears exist or there is a repeated pattern of late payments.
  
• Proper forms and timelines were followed.

The tenant may raise defences, such as:

• Improper notice or incorrect service.
  
• Serious repair or maintenance issues affecting the rental unit.
  
• Proof of harassment or bad faith by the landlord.

The LTB has discretion. Even when the landlord proves late payment or arrears, the LTB can order a repayment plan instead of eviction, depending on the circumstances.

Collecting Rent Arrears in Ontario After a Tenant Moves Out

If a tenant leaves the unit owing money, the landlord cannot continue through the LTB for collection. Instead, they must file a claim in Ontario Small Claims Court.

• Small Claims Court limit: Effective October 1, 2025, the court’s jurisdiction will increase to $50,000.
  
• This allows landlords to pursue unpaid rent, damages, or other financial losses once a tenant has vacated.
  

This is an important option for landlords dealing with rent arrears in Ontario, especially when the tenant has already moved and eviction is no longer part of the process.

Why Legal Accuracy Matters

Eviction for late or unpaid rent is highly technical. A simple mistake — like using the wrong form, missing a deadline, or incorrectly serving a notice — can delay proceedings or result in dismissal.

Landlords often face challenges such as:

• Accidentally accepting partial payment after serving an N4, which can reset the process.
  
• Failing to provide a 60-day notice for persistent late payments.
  
• Lack of proper evidence to support an N8 claim.

For these reasons, working with a licensed paralegal ensures the matter is handled properly from the start.

Get Help With Rent Arrears in Ontario

If you’re dealing with late rent payments, persistent arrears, or eviction challenges, MTS Paralegal Services can help.

Located at 15 Schneider Ave, Unit A2, Kitchener, MTS provides experienced representation before both the Landlord and Tenant Board and Ontario Small Claims Court.

📞 Call (226) 444-4882 to discuss your situation and take the right legal steps to protect your property and recover unpaid rent.