Made for: Renters
Length: 6 minutes and 51 seconds
Falling behind on rent is stressful, but ignoring the problem only makes it worse. Under Ontario’s Residential Tenancies Act (RTA), rent must be paid on the date it is due. And when you can’t? That’s what I’ll talk about in this video - what to expect.
My name is Weiting Bollu, CEO at Openroom.ca. I’ve spent thousands of hours diving into the rental laws of Ontario so you don’t make the same mistakes I’ve made in the past.
When you, as a tenant, cannot pay, the best chance to save the tenancy is to take action immediately.
As soon as you know you will not be able to pay rent on time, you should notify the landlord in writing. A simple message acknowledging the issue shows responsibility and respect.
You should include details such as:
A landlord is more willing to work with you when you communicate than one who just, poof, disappears.
Put the proposal in writing and be realistic. For example:
“I will pay $600 on the 15th and the remaining $500 on the 30th.”
The landlord is not your personal banker, and it is reasonable for you to seek temporary help from family, friends, or community resources when necessary. Rent is a priority payment, housing stability depends on it.
When it gets really serious and there’s a large chunk of rent owing at this point, there’s an LTB form that can arrange a FORMAL Payment Agreement. It might be more settling for your Landlord if you both have this in place.
It’s not mandatory, and you may want to consult a legal representative before you do this because once the Payment Agreement is signed, it is a legal contract.
If rent is not paid, the landlord will likely issue an N4 – Notice to End a Tenancy Early for Non-Payment of Rent. This is a legal document required under the RTA. The N4 includes:
If you pay in full before the deadline, the N4 becomes void.
If rent is not paid by the termination date, the landlord can file an L1 Application - an Application to Evict a Tenant for Non-payment of Rent and to collect rent the tenant owes.
They’ll also be at the Landlord and Tenant Board (LTB) to seek eviction for non-payment.
A copy of what it looks like can be found in the description below or directly on the LTB’s website.
Remember that payment plan you offered in writing in Step 2?
There’s a more formal one for when it gets really serious and your landlord has filed that L1 application, there’s an LTB form that can arrange a FORMAL Payment Agreement.
A PAYMENT AGREEMENT CANNOT:
• agree to end the tenancy or evict the tenant
• include any repayment of any non-rent arrears amounts owing by the tenant
WHAT HAPPENS AFTER THIS FORM GOES TO THE BOARD?
If the landlord files a copy of the Agreement with the Board, the Board will decide whether to make an order based on the Agreement.
• After this form is filed the Board may issue a consent order. If a consent order is issued the hearing will be cancelled.
• If the Board does not issue a consent order, then a hearing will take place as scheduled (or a hearing will be scheduled).
Overall, it’s not mandatory to sign this agreement - rather it’s an option to avoid going to the Tribunal. You may want to consult a legal representative before you do this because once the Payment Agreement is signed, it is a legal contract.
Do not ignore the hearing notice. If you attend, they have the opportunity to:
The LTB may allow the tenancy to continue if you show a clear plan and willingness to catch up.
If you actually end up at the Tribunals, you might find our free template for evidence preparation handy. Link to download is in the description below.
A non-payment order may affect your ability to rent in the future. Once you land at the Tribunals, the results and discussions may become publicly accessible - that means your name and address can be searchable.
More importantly, some landlords report unpaid debt to Consumer Reporting Agencies such as Openroom and it could land on your credit history in Equifax and TransUnion.
This may even impact future rental applications or even a mortgage application later.
Let me show you what this looks like!
There are several sections to a consumer credit report. It gives you a financial history about you.
This is an example of an Equifax Credit Report.
One of the sections is called the COLLECTIONS or DEROGATORY section. Once a record hits in this section, it stays there for 6 years!!!
If a Creditor (in this case a Landlord) hits your credit, it would look something like this: the agency who marked your file (like Openroom), who the Creditor is (or the Landlord), How much is owed, and that the status is UNPAID. You can learn more about our Rental Debt Ledger and how it works in the description below.
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Okay, it’s time for our Rental Trio: the key points I talked about in this video.
A tenant who communicates, pays as soon as they can, and follows through on agreements stands the best chance of keeping their home, and protecting their credit.
If you enjoyed this, give me a thumbs up and press subscribe.
See you next week!
Disclaimer: The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, or professional advice. You should consult a qualified professional regarding your specific circumstances before taking any action.
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Weiting's entrepreneurial journey began with a costly lesson in rental property management, where she experienced losses exceeding $35,000 due to non-paying tenants. Determined to prevent others from facing similar challenges, she built Openroom to pave a future towards a transparent and connected rental ecosystem.
Drawing from her extensive background in software product management spanning education, telecommunications, insurance, and artificial intelligence, Weiting has become a trusted advisor to founders of venture-backed companies. Beyond the tech sphere, Weiting managed properties for over a decade and made significant contributions to community leadership. She’s served on the Board of Rotary District 7070 and chaired various organizational committees.
Weiting balances her professional endeavours with being a parent of two kids under two. Alongside thousands of other parents, she was awarded participation trophies in innovative improvisation, ever-changing expectations management, daily roadmap planning, and hardcore patience!
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