Payment Disputes & Resolutions
Educational content about rent payment disputes, late payment procedures, arrears applications, and resolution options available to landlords and tenants under Ontario's Residential Tenancies Act.
Rent Payment Obligations
Under Ontario's RTA, tenants must pay rent in full and on time as specified in the lease agreement. Rent is typically due on the first day of each month unless otherwise agreed.
- Payment must be made on the date specified in the tenancy agreement
- Landlords can accept various payment methods (cheque, bank transfer, cash)
- Post-dated cheques are commonly used but not mandatory
- Rent increases must follow legal guidelines (typically once per 12 months)
Late Payment Procedures
When rent is late, landlords must follow specific legal procedures before taking further action:
N4 Notice - Notice to End Tenancy for Non-Payment
If rent is not paid, landlords can serve an N4 notice requiring payment within 14 days.
- •Must specify exact amount owed
- •Tenant has 14 days to pay (voiding the notice)
- •After 14 days, landlord can file an L1 application with LTB
Persistent Late Payment
Landlords can serve an N8 notice if rent is persistently late (even if eventually paid).
- •Requires pattern of late payments
- •60-day notice period
- •Must be filed with LTB within 30 days
Arrears Applications (L1)
If the N4 notice period expires without payment, landlords can file an L1 application with the LTB:
- Must be filed within 30 days of N4 termination date
- LTB schedules a hearing (may take several months)
- Tenant can pay arrears before hearing to void application
- LTB can order payment plan or eviction
Resolution Options
Both landlords and tenants have several options to resolve payment disputes:
Payment Plans
Negotiate a structured payment plan to catch up on arrears while maintaining current rent obligations.
Mediation
LTB offers mediation services before formal hearings to help parties reach agreements.
Payment to Void
Paying rent arrears and application fees before hearing can void the eviction application.
Financial Assistance
Tenants may access provincial rent assistance programs or emergency financial support.
Tenant Rights During Payment Disputes
- Right to remain in unit until LTB orders eviction
- Right to attend hearing and present evidence/testimony
- Right to request payment plan or delayed eviction
- Protected from harassment or illegal eviction attempts
- Can void notice by paying before hearing
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