Ontario’s rental housing rules are changing.
Whether you own a rental property, are considering selling a tenant-occupied home, are purchasing an investment property, or currently rent your home, important changes to Ontario’s Residential Tenancies Act, 2006 (RTA) take effect on September 21, 2026. Ontario
These changes affect several aspects of the landlord-tenant relationship, including non-payment of rent, landlord’s own-use notices and certain procedures before the Landlord and Tenant Board.
Here are some of the changes Ontario property owners, buyers, sellers and tenants should understand.
One of the most significant changes involves situations where a tenant fails to pay rent.
Under the new rules, if rent lawfully owed under a tenancy agreement is not paid, a landlord may give a notice of termination with an effective date no earlier than the seventh day after the notice is given. The previous minimum was generally 14 days for tenants paying monthly or annually. Ontario has also prescribed a new version of the N4 form for this process. Ontario
This does not mean a landlord can simply remove a tenant after seven days.
If the tenant does not leave voluntarily, the landlord must follow the applicable legal process through the Landlord and Tenant Board (LTB).
For landlords, proper documentation of rent payments, notices and communications therefore remains extremely important.
here is also an important change affecting certain situations in which a landlord genuinely requires the rental property for their own residential use.
Under the existing framework, a landlord using an N12 for landlord’s own use generally must provide the tenant with compensation equal to one month’s rent or offer another rental unit acceptable to the tenant.
Beginning September 21, 2026, the compensation requirement does not apply in certain landlord’s own-use cases when the notice meets specific conditions, including that the termination date is at least 120 days after the notice is given and falls at the end of a tenancy period or, for a fixed-term tenancy, at the end of the term. Ontario
This is an important distinction.
It does not mean compensation has been eliminated for every N12 situation. The specific circumstances, timing and reason for the notice matter.
The changes do not turn an N12 into a simple mechanism for removing a tenant.
A landlord relying on landlord’s own use must still meet the applicable requirements of the RTA, including the good-faith requirements.
Ontario has also prescribed a 60-day period for purposes of the new section 57(6.1) framework. Depending on when the tenant leaves, that period runs either from the termination date in the notice or from the date the tenant actually vacates the unit. Ontario
For property owners, the key takeaway is simple: documentation and compliance matter.
Before serving a notice or making decisions that could affect an existing tenancy, it is important to understand exactly which rules apply.
This is where the legislation becomes particularly relevant from a real estate perspective.
You can sell a property that has a tenant. However, selling a tenant-occupied property is different from selling a vacant home.
The existence of a sale does not, by itself, automatically end a tenancy.
Before listing the property, I recommend understanding the existing tenancy, including the lease terms, whether the tenancy is fixed-term or month-to-month, current rent and other relevant circumstances.
The buyer’s intentions can also be important.
An investor purchasing the property and continuing the tenancy presents a very different situation from a buyer who intends to occupy the property as their home.
That is why I believe the tenancy situation should be considered before the property goes on the market, not after an offer has already been accepted.
If you are considering purchasing a tenant-occupied property in Ontario, the tenancy should be part of your due diligence.
For an investor, an existing tenant can potentially provide rental income immediately after closing.
For someone intending to make the property their primary residence, however, the situation can be more complicated.
Before submitting an offer, you should understand the existing tenancy agreement, lease term, current rent and whether vacant possession is actually available under the circumstances.
Never assume that purchasing the property automatically gives you the right to require the existing tenant to leave.
If you own one or more rental properties, this is a good time to review your procedures.
Make sure your lease documents, payment records and communications with tenants are organized. If you are planning to sell, move into a rental property or deal with unpaid rent, understand the applicable requirements before taking action.
Real estate decisions and landlord-tenant legal procedures are related, but they are not the same thing.
As a Real Estate Broker, I can help you understand the real estate side of buying or selling a tenant-occupied property. For advice about your specific legal rights or an LTB proceeding, you should consult an Ontario lawyer or licensed paralegal experienced in landlord and tenant law.
Selling an investment or tenant-occupied property requires more than simply putting it on the market.
The existing tenancy can affect the marketing strategy, timing, showings, negotiations and ultimately the transaction itself.
I can help you evaluate your property, understand the real estate considerations and develop a selling strategy based on your situation.
Whether you own a condo, townhouse, detached home or investment property anywhere in the areas I serve in Ontario, contact me before making your next move.
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