How To Handle A Late Rent Payment (2024)

Estimated reading time: 12 minutes

Both a landlord and tenant have responsibilities when entering a rental agreement.

Find out about a late rent payment notice and enjoy free printable information.

Landlord and Tenant Rental Payment Obligations

In Ontario, a landlord can end the tenancy for non-payment of rent, consistently paying the rent late, or not paying the rent in full each month.

Most tenants who rent pay monthly, and when you have a late rent payment, you better have a good reason and an understanding landlord.

Related: A Guide To Help You Negotiate A Rent Increase (Sample Letter)

Below you find out what happens when you have a late rent payment as a tenant in Ontario, what a landlord can do when there is a late rent payment and a free printable late rent notice for landlords.

At the end of this post, you will find links to all Provincial and Territorial Landlord and Tenancy Acts or Information leading to them so you can research where you live.

Since we live in Ontario, most of this blog info will be Ontario, Canada based; however, I will add information for other provinces and territories where possible.

Always do your homework with government websites and call respective organizations.

The Landlord And Tenant Board

In Ontario, the Landlord and Tenant Board (LTB) serves as a body that resolves disputes between landlords and tenants.

As well they serve eviction notices sent out by non-profit housing organizations.

In other words, they are the mediators when it comes to disputes when a landlord has problems with a tenant, and vice-versa a tenant has concerns with a landlord.

The LTB also provides information about its practices and procedures and the rights and responsibilities of landlords and tenants under the Residential Tenancies Act.
The LTB is one of the eight tribunals that make up Social Justice Tribunals Ontario (SJTO).

Late Rent Payments

When you have no money to pay rent, and your landlord is standing at your apartment door, you must figure out a way to

Negotiate with your landlord to avoid eviction
Pay rent in full

You can’t live for free because bills need to be paid, and that’s the way life goes.

Entering a rental lease with a landlord means you should always understand three things about paying rent.

When the rent is due each month
Acceptable forms of rental payment options
Who to give your rent payment to

Tenant Not Paying Rent

If you choose not to pay rent, the landlord could do two things:

Send a late rent notice and ask you to pay or move out. Apply to Landlord Tenant Board (LTB) for eviction.
The landlord can apply to the LTB, asking for an order or rent payment without evicting you.

If your landlord takes option 2, they want you to stay, but you must pay the rent.

To start the process of option 2, your landlord will fill out a form called L9- An application to collect rent the tenant owes.

This process can only occur if the tenant is still living in the rented space and it has been one day since the rent has come due.

How To End The L9 Process

To avoid this entire process, the tenant can pay everything due, including any new rent not paid.

You can either pay your landlord directly or in trust by getting a deposit slip from the LTB and going to your bank to deposit the money.

Money will be held until after the hearing, and the LTB will decide how to manage it in trust.

If the process is already in place and you’ve agreed to pay the rent that you owe to your landlord, they can fill out a Payment Agreement Form and submit it to the board.

You will want to do this because the board can decide whether to cancel the hearing or follow through based on what is presented.

Related: How to boost your financial situation when you can’t afford to pay rent

Automatic Rent Payment

The Ontario Disability Support Program (ODSP) can pay rent directly to your landlord so the tenant does not have to worry about rent payments.

This process, called “Pay Direct, ” is used for housing and utilities if the person applies.

Other than that, as a tenant, you are responsible for paying your landlord rent on time each month without question.

Can I pay rent online?

If you want to pay rent online or in cash, I advise you to keep a money trail.

Your best option for paying rent is using a cheque. You can order cheques from your bank for a small fee.

A bank such as Simplii Financial offers clients free cheques and no-fee banking, a budget-friendly banking option.

Rent Receipt Is A Must

Always collect a rent receipt from your landlord for income tax, tracking, and legal purposes.

The landlord should never charge a tenant for a rent receipt.

What should be on a rent receipt?

A rent receipt should state the following:

Address of the rental
Names of the tenants
Amount and Date of each payment and what it was for
Landlords Name
Signature of the landlord or rental agency

Tenant Late Rent Payment Every Month

How to handle a late rent payment?

When a landlord has a renter who is not paying rent or consistently late paying it, it can be frustrating because bills still need to be paid on the dwelling.

A tenant and landlord agree that rent will be paid on time each month on a specific day or week.

When a tenant cannot pay the rent and a landlord can’t pay the bills, it can cause significant problems.

Not all landlords have excess cash to pay a mortgage when tenants don’t pay rent.

The first reason a landlord will fail to succeed in the rental business is not being ready to face situations.

Becoming a landlord is a significant investment, and having no spare cash to support financial uproar is a big mistake.

Tenants may not realize what they are doing when they pay rent late, which is unfair to the landlord.

As a tenant, you must come up with the money to pay your rent on time or negotiate a rental payment plan ahead of time.

Late Rent Notice

As a landlord, you should provide your tenant with a late rent notice for two reasons;

As a reminder that the rent is due and has not been paid and is now late
It is your responsibility as a landlord

Sample Late Rent Payment Notice

Find the sample late rent payment letter notice on the Free Downloads and Money Saving Tools Page.

Your Name

Street Address

City, Postal Code

Date

Tenant’s Name

Rental Address

City, Postal Code

Re: Late Rent Payment Notice

Dear (Insert Tenant(s) Name):

This notice is to formally notify you that we have not received your rent payment for the month(s) of March 2019.

As set out in our rental agreement, your rent for the following property below is past due and must be paid in full within (xx) days, or we will be forced to start the eviction process.

(Add property Information here)

(Include how much money is due plus any late payment fees)

(Add the due date of late rent payment)

If this was an oversight, please immediately send your late rent payment and any late payment fees described above to avoid further late charges.

Thank You for your prompt attention to this matter.

You can reach me at (insert phone number) between the hours of (insert hours) and (days if applicable) if you have any questions about this late rent payment notice.

Sincerely,

Landlord Responsibilities

Becoming a landlord isn’t just about collecting rent because you must look after the property you own.

Keeping your property in working order means ensuring everything works and follows property standards, health, and safety, including fire safety laws.

Appliances
Plumbing
Electrical
Heating Units
Laundry Room
Walls, Roofs, Ceilings
Garage
Carpets in the unit and common areas
Windows
Doors
Locks
Lighting
Garage
Patio
Walkways
Pools

All of the above are responsibilities a landlord must adhere to under the LTB and fix or repair; however, nothing needs to be replaced or updated to new models.

In other words, if your refrigerator no longer works as a tenant, you can’t ask for a new model.

As long as the refrigerator that is replaced does the intended job, that’s all the landlord needs to do.

Property Maintenance

A landlord must also ensure the property is kept clean and free from pests and rodents.

This means a landlord must adhere to property standards, local by-laws, health, and safety regulations, whether in a building or a house.

Where there are no property standards or local by-laws, the landlord must follow provincial maintenance standards set out by Residential Tenancies Act regulations.

These regulations are monitored and enforced by the municipality in which one resides.

The landlord must not interfere with vital services, such as water, electricity, fuel, and heat, during certain times of the year.

For example, if the landlord provides heat, it must be kept at a minimum of 20 degrees from Sept 1 to June 15.

If your landlord needs to enter the rental unit for inspection or maintenance, they must give 24 hours written notice.

The notice must include the following;

Date and time of entry into the unit
Reason for entering the unit
The time range of access. Between 1 pm and 3 pm, for example

Tenant Responsibilities

If you have a problem with any landlord’s responsibilities above, you must inform the landlord about your concern or fix the problem.

Ideally, you would want to inform your landlord by filling out a maintenance order, writing a letter, and keeping a copy for your records.

If the landlord does not promptly fix or rectify the problem, the tenant can apply to the Landlord Tenant Board or report it to the local government.

At no time shall a tenant hold back the rent because concerns are not taken care of, as the landlord can apply to have you evicted for non-payment of rent.

Related: The Ultimate Guide To Protecting Yourself From Rental Scams

As a tenant, your responsibilities are simple:

Pay your rent on time
Keep your rental clean and free from clutter and fire hazards
Fix and repair any damages that are not normal wear and tear, even those caused by a guest

A tenant cannot be evicted for not keeping the apartment clean.

However, if the rental is kept unreasonably filthy and interferes with the reasonable enjoyment of the landlord or other tenants, you can be evicted.

Remember that filth attracts pests, and no one should live in a dwelling where another tenant cannot keep it clean or is present with fire hazards.

As a tenant, if you do not fix any repairs or hazards made by anyone on the lease or guests in the rental, the landlord can apply to end the tenancy with you in writing and fill out the form with LTB.

Eviction For Late Rent Payment

If a landlord has not received rent payment, they can end a tenancy by filling out an N4: Notice to End your Tenancy Early for Non-payment of Rent.

Before a landlord can serve a tenant with a notice to end the tenancy early, they must wait until the day after rent is due.

This gives the tenant the entire day when payment is due to come up with the rent before action is legally pursued.

When action is put in motion for the N4, the landlord can only calculate for non-payment of rent and parking.

Nothing else.

Not even NSF Non-Sufficient Funds payments on bounced cheques, late payment fees, or last month’s rent payment.

How The N4 Works

Any utility bills paid outside the rent payment are not considered rent and must not be included on the N4 form.

As a tenant, if you rent monthly or yearly, your landlord must give you 14 days’ notice to move out or seven days’ notice if you rent weekly or daily.

When the landlord delivers a notice to end the tenancy, they must not add the day of delivery to the days of notification.

So if your landlord hand delivers a 14 or 7-day eviction notice, the date must start the following day.

For example:

Notice of Tenancy Termination Tues, Aug 13, means the landlord must deliver the information on the 12th, whereas the 14 or 7 days begin on the 13th.

If your landlord does not live in the same city, province, or country, they must calculate courier delivery time.

A tenant who is served the N4 form can avoid eviction by paying the rent on time before the end date on the record, plus any additional rent that is due.

If the tenant does so before the termination date, the landlord cannot apply to the board for eviction with said notice.

As a tenant, if you do not pay rent and are served the N4, you do not have to move out; however, the landlord can apply to the board to evict you.

You will be informed of the application notice by your landlord, as the Board will send you a copy of the application and a Hearing date.

Once this process takes place, if an eviction notice is approved, you may be faced with paying the fees of your landlord plus your own.

Appealing An N4 Notice For Eviction

If you disagree with the N4 notice, you can appeal it by letting the board know you want to discuss the matter in a scheduled hearing.

Ultimately, discussing this with your landlord beforehand to avoid this entire process would make things easier.

Even if you choose to move out before the end of the termination notice, you will still owe your landlord money.

Moving out does not void what you owe, and your landlord can still take you to court to pay any rent in arrears.

The moral of the rental agreement is always to pay your rent on time to avoid late rent fees and possible eviction.

Discussion: Share any late rent situations you’ve been in and how you and the landlord handled it below.

Contact the Landlord and Tenant Board

For more information about this notice or your rights, you can contact the Landlord
and Tenant Board.

You can reach the Board by phone at 416-645-8080 or 1-888-332-3234.

You can also visit the Landlord and Tenants Board for more information and to access all the forms.

Call us: Toll-free: 1-888-332-3234
Toronto area: 416-645-8080
TTY: Bell Relay Service at 1-800-268-9242

For those not aware, please be advised that Rental Laws in Canada differ by Province, so please research other Provinces. This is for Ontario only.

Provincial and Territorial Landlord Tenant Act Information

Canada’s 10 Provinces and their respective Landlord Tenant Act or Information Leading to it.

If you find a link error, please report it to me via email or my contact form.

Canada’s 3 Territories

For more information about laws for renting in Canada, see the LawNow article,Renting in Canada,and the Canada Mortgage and Housing Corporation’sProvincial and Territorial Fact Sheets.

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