Bassam Khdair, Sales Representative · RE/MAX Realty Services Inc., Brokerage

Ontario's New Eviction Rules: What Landlords and Sellers Need to Know Before September 2026

By Bassam Khdair  |  August 2026  |  Peel & Halton Region

If you own a tenanted property in Mississauga, Brampton, Oakville, or Burlington — whether as a landlord managing long-term rentals or as a seller with a tenant in place — the rules governing eviction notices and LTB procedures changed significantly in 2026. Two provincial acts — Bill 60 (Fighting Delays, Building Faster Act, 2025) and Bill 97 (Helping Homebuyers, Protecting Tenants Act, 2023) — together amend the Residential Tenancies Act, 2006 in ways that affect how notices are served, what fines look like, and how hearings work.

The Landlord and Tenant Board (LTB) confirmed the two-stage rollout on June 30, 2026. Some provisions took effect July 1, 2026. Further significant changes were set to take effect in September 2026.

Official LTB Source
Two-Stage Rollout
Source: Tribunals Ontario LTB Operational Update, June 30, 2026 — tribunalsontario.ca

What Are Bill 60 and Bill 97?

Bill 60 (Fighting Delays, Building Faster Act, 2025, S.O. 2025, c. 14) received Royal Assent November 27, 2025. Its RTA amendments are in Schedule 12 of the enacted bill.

Bill 97 (Helping Homebuyers, Protecting Tenants Act, 2023) provided earlier RTA amendments in Schedule 7. Bills 60 and 97 are being implemented together in the 2026 rollout.

The full consolidated Residential Tenancies Act is at ontario.ca/laws/statute/06r17. All LTB forms are at tribunalsontario.ca.

Changes in Effect — July 1, 2026

The following are confirmed by the LTB's June 30, 2026 Operational Update:

LTB Review Deadline Cut to 15 Days

The timeline to request a review of an LTB order was shortened from 30 days to 15 days. If you receive an order and believe there is an error, you now have half the previous time to file. Missing the window means the order is final.

Source: Tribunals Ontario LTB Operational Update, June 30, 2026 — tribunalsontario.ca

Official LTB Forms Now Mandatory

All eviction notices must use the current official LTB-approved forms. Any informal or homemade notice — even if the content is factually correct — is no longer valid. Using the wrong form means the notice is void and you must start over. Always download forms fresh from tribunalsontario.ca.

Source: Tribunals Ontario LTB Operational Update, June 30, 2026; RTA s.43(1) (S.O. 2006, c.17) — ontario.ca/laws/statute/06r17

Maximum Fines for RTA Offences Doubled

The Ontario Rental Housing Enforcement Unit (RHEU) investigates RTA offences and can initiate prosecutions that result in fines ordered by the Ontario Court of Justice. Maximum fines under s.236 of the RTA have increased:

Note: These are maximum prosecution fines for RTA offences under s.236 — they are separate from the compensation amounts the LTB may order. Bad-faith eviction can result in prosecution and significant LTB-ordered compensation.

Source: Tribunals Ontario LTB Operational Update, June 30, 2026 (confirms s.236 fine increases) — tribunalsontario.ca

Rules for Air Conditioners

Tenants now have the right to install window or portable air conditioning units, provided all applicable conditions are met (see the LTB's Rules for Air Conditioners brochure). If utilities are included in the rent, the landlord may charge a reasonable seasonal electricity increase — but cannot prohibit the installation outright.

Source: Tribunals Ontario LTB Operational Update, June 30, 2026 — tribunalsontario.ca

Changes Coming in September 2026

The LTB confirmed that further changes from Bills 60 and 97 "are to take effect in September 2026." The specific September date has been reported by LTB practitioners as September 21, 2026, pursuant to Order in Council 618/2026. Always verify current LTB notice requirements at tribunalsontario.ca before serving any notice.

⚠️ These changes are imminent. If you are planning any landlord-tenant action, review each item and confirm current requirements at tribunalsontario.ca before serving any notice.

N4 (Non-Payment of Rent): Shorter Termination Period

The N4 notice is used when a tenant has not paid rent. Currently the notice gives the tenant 14 days to pay before the landlord can file with the LTB. This period is being shortened under the September 2026 changes. Confirm the current required period at tribunalsontario.ca before serving an N4 — and use the current official N4 form, which will be updated to reflect the new timeline.

Source: Tribunals Ontario LTB Operational Update (Bills 60 and 97, September 2026 wave) — tribunalsontario.ca

N12 (Own-Use / Family Eviction): Compensation Change and Occupancy Obligation

Two significant changes apply to N12 notices under the September 2026 wave:

Sellers considering an N12 to vacate a tenanted property before sale should understand that the buyer or named occupant must be genuinely prepared to move in on the timeline the legislation requires.

Source: Schedule 12 of Bill 60 (S.O. 2025, c. 14) — Bill 60 enacted text (OLA); Tribunals Ontario — tribunalsontario.ca

Arrears Defense: 50% Payment Required Upfront

Under the September 2026 changes, a tenant must pay at least 50% of the rent arrears claimed in the L1 application before they can raise a maintenance issue as a defense at a non-payment eviction hearing. This changes the dynamic significantly: tenants who want to raise s.82 maintenance issues at an L1 hearing must first make a substantial payment toward the arrears.

Source: Tribunals Ontario LTB Operational Update (Bills 60 and 97, September 2026 wave) — tribunalsontario.ca

Persistent Late Payment: Now a Formal Eviction Ground

RTA s.58(1.1) (as amended by Bill 60) establishes persistent failure to pay rent on time as an eviction ground. A regulation under this section defines the threshold for what constitutes "persistent" late payment. Landlords who have experienced a pattern of habitual late payment — even where rent is eventually paid — can serve an N8 notice based on this ground, and file an L2 application with the LTB. The LTB can also make findings of persistent late payment in other circumstances beyond the regulatory definition. Document all payment dates carefully if this ground may be relevant.

Source: RTA s.58(1.1) as amended by Bill 60, S.O. 2025, c. 14, Schedule 12; Tribunals Ontario — tribunalsontario.ca

L10 Application: Pursuing Former Tenants

An L10 application allows landlords to pursue former tenants at the LTB for money owed after they have vacated — including unpaid rent arrears and property damage. This application is available for tenants who moved out on or after September 1, 2021, and must generally be filed within one year of the tenancy ending. Document move-out conditions thoroughly (photos, inspection reports, receipts) if you anticipate pursuing an L10.

Source: Tribunals Ontario — tribunalsontario.ca (L10 application); RTA as amended

2026 Rent Increase Guideline: 2.1%

The Ontario rent increase guideline for 2026 is 2.1%. This applies only to residential units first occupied for residential purposes before November 15, 2018. Units first occupied on or after that date are exempt from the rent increase guideline. Proper written notice of any rent increase is always required regardless of guideline applicability.

Source: ontario.ca — Rent increase guideline

Key Dates at a Glance

Date Change Status
July 1, 2026 LTB review deadline 30 → 15 days; official forms mandatory; s.236 prosecution fines doubled; air conditioner rights ✅ In Effect
September 2026 N4 shortened notice; N12 compensation waiver and occupancy obligation; 50% arrears upfront; persistent late payment ground; L10 for former tenants ⏳ Upcoming — Verify at tribunalsontario.ca
2026 (ongoing) Rent increase guideline: 2.1% (pre-Nov 15, 2018 units only) ✅ In Effect

What Does This Mean If You're Selling a Tenanted Property?

Selling with a tenant in place is more complex than an empty home — and the 2026 changes add new dimensions. Here is what sellers need to consider:

Frequently Asked Questions

Q: Can my tenant refuse to leave if I serve an N12 to sell my property?
Yes. A tenant who receives an N12 can dispute it at the LTB and challenge whether the stated occupant will genuinely move in. Under the 2026 changes, failure of the named occupant to move in within the required period can support a finding of bad faith, with consequences including prosecution fines under s.236 RTA. An N12 is a legal process, not a guaranteed vacancy. Source: RTA as amended by Bill 60, S.O. 2025, c. 14; tribunalsontario.ca
Q: My tenant hasn't paid rent. What N4 notice period applies now?
The N4 notice period is changing as part of the September 2026 LTB changes under Bills 60 and 97. Before serving any notice, confirm the current required period at tribunalsontario.ca and use the most current version of the N4 form. Using an outdated form or incorrect period means the notice is void. Source: Tribunals Ontario LTB Operational Update — tribunalsontario.ca
Q: Does the 2.1% rent increase guideline apply to my property?
Only if the unit was first occupied for residential purposes before November 15, 2018. Units first rented out on or after that date are exempt from the provincial guideline — though what is written in the lease governs during the lease term, and proper notice is always required for any increase. Source: ontario.ca — Rent increase guideline
Q: Can I sell my tenanted property without evicting the tenant first?
Yes. A tenancy survives a sale — the new owner becomes the landlord and the existing lease remains in force. Many investors purchase properties with tenants deliberately. The key differences are in pricing, marketing strategy, and finding a buyer prepared for the tenancy obligations they are acquiring. Vacant possession and tenanted sale are two very different transaction types. Source: Residential Tenancies Act, 2006 (ontario.ca/laws/statute/06r17)
Q: A former tenant left damage and unpaid rent. Can I still pursue them?
An L10 application allows landlords to pursue former tenants at the LTB for arrears and damages after they have vacated. It is generally available for one year after the tenancy ends. Document everything — photographs, move-out inspection reports, receipts — before filing. Source: Tribunals Ontario (tribunalsontario.ca); RTA as amended
Q: What happens if I serve an eviction notice on the wrong form?
The notice is void. The tenant has no obligation to comply, and any LTB application based on that notice will be dismissed. You must re-serve using the current official form from tribunalsontario.ca — and the notice period restarts from the new service date. Always download forms fresh before use. Source: RTA s.43(1) (ontario.ca/laws/statute/06r17); tribunalsontario.ca
Q: My tenant pays late every month but always pays eventually. Is that a problem now?
It could be. RTA s.58(1.1) as amended by Bill 60 establishes persistent late payment as a formal eviction ground, with the threshold defined by regulation. If you have a habitual pattern of late payments, you may have grounds to serve an N8 notice and file an L2 with the LTB. Document all payment dates. The LTB also retains discretion to find persistent late payment in other circumstances beyond the regulatory definition. Source: RTA s.58(1.1) as amended; Bill 60, S.O. 2025, c. 14 — Bill 60 (OLA)

Thinking of Selling a Tenanted Property?

Navigating these changes while preparing a tenanted home for sale requires both legal awareness and market strategy. Bassam Khdair works with landlords and investors across Mississauga, Brampton, Oakville, and Burlington — helping structure transactions that manage tenant timing, protect sellers from compliance risk, and position properties correctly for today's buyer pool.

Contact Bassam to Understand Your Options

RE/MAX Realty Services Inc., Brokerage  |  info@bkrealtor.ca

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Landlord-tenant law is complex and fact-specific. LTB rules, forms, and procedures are updated regularly — always verify current requirements at tribunalsontario.ca before taking any action. For advice specific to your situation, consult a qualified Ontario real estate lawyer or licensed paralegal.