How to Collect Unpaid Rent After Tenant Leaves Ontario (2026)

When a tenant moves out and owes you money, the eviction is over but your financial recovery is just beginning. Ontario landlords have several legal options for collecting unpaid rent, damages, and other amounts owed by former tenants. Each option has different costs, timelines, and enforcement power. Here is a practical guide to recovering what you are owed, updated with current 2026 fees and Bill 60 changes.

Which Collection Method Should You Use?

The right approach depends on the amount owed, whether you already have an LTB order, and the former tenant's financial situation. Here is a comparison of your three main options.

Option 1: File an L10 Application With the LTB

The L10 Application to Collect Money a Former Tenant Owes is filed with the Landlord and Tenant Board. This is the most common option for straightforward rent arrears from former tenants.

What You Can Claim on the L10

• Unpaid rent arrears
• Damages to the rental unit beyond normal wear and tear
• Utility arrears the tenant was responsible for under the lease
• The LTB filing fee ($208)
• NSF cheque charges

L10 Filing Requirements

• Must be filed within 1 year after the tenant moved out
• Filing fee: $208
• You need the tenant's current address for service (this can be challenging)
• Include a detailed rent ledger, lease agreement, and photos of damage

Advantages

• Lower filing fee than Small Claims Court for larger claims
• Specialized tribunal familiar with landlord-tenant matters
• If the tenant does not attend, you can request a default order

Disadvantages

• Long wait times for hearings (6-10 months with the current backlog of 53,000+ cases)
• The LTB order must be filed with the court to be enforceable through garnishment or seizure
• Finding the former tenant's new address can be difficult

Option 2: File in Small Claims Court

For larger amounts or when you need stronger enforcement tools, Small Claims Court is often the better option. As of 2026, Small Claims Court handles claims up to $35,000.

Filing Fees

• Claims filed online: $102 (claims up to $7,500) or higher for larger claims
• Claims filed in person: $114 and up
• Additional costs for serving the defendant

Advantages

• Higher claim limit than practical LTB limits
• More robust enforcement mechanisms — garnishment, seizure of assets, examination of debtor
• Judgments are directly enforceable without additional filings
• 2-year limitation period (longer than the L10's 1-year window)

Disadvantages

• Higher filing fees for larger claims
• May need a paralegal or lawyer for claims over $5,000
• Must serve the defendant — need their current address

Option 3: Enforce an Existing LTB Order

If you already have an LTB order that includes an amount for rent arrears (from an L1 or L2 hearing), you can enforce it directly. File the LTB order with Small Claims Court to convert it into a court judgment. Once filed, you can use court enforcement mechanisms:

• Garnishment of wages: Up to 20% of the debtor's net wages directed to you
• Garnishment of bank accounts: Funds in the debtor's bank account can be frozen and seized
• Writ of Seizure and Sale: The Sheriff can seize and sell the debtor's personal property
• Examination of debtor: The debtor can be ordered to appear in court and disclose their income, assets, employer, and bank accounts

Option 4: Use a Collection Agency

For amounts that are not economically practical to pursue through court, a collection agency can be an effective alternative. Collection agencies typically charge 25-40% of what they collect — meaning you receive 60-75% of the recovered amount with no upfront cost and no court attendance.

Collection agencies can also report the debt to credit bureaus, which creates additional motivation for the debtor to pay. However, they have no legal power to garnish wages or seize assets — if the debtor simply refuses to pay, you will still need a court judgment.

Step-by-Step: Collecting Unpaid Rent Effectively

Step 1: Act Quickly

The sooner you start the collection process, the better your chances of recovery. Tenants who skip on rent often move frequently — the longer you wait, the harder they are to find. For the L10, you have only 1 year.

Step 2: Know Where to Find the Tenant

To serve court documents or enforce a judgment, you need the tenant's current address and ideally their employer information. Gather as much information as possible while the tenant is still in your unit — employer name, bank information (from rent cheques), vehicle information, and emergency contacts.

Step 3: Document Everything

Maintain a detailed rent ledger showing every payment and missed payment. Take timestamped photos of any damage when the tenant vacates. Keep copies of all correspondence. This documentation forms the foundation of your claim.

Step 4: Choose Your Method

Use the comparison table above to select the best collection method for your situation. For amounts under $3,000, a collection agency may be most practical. For $3,000-$35,000, Small Claims Court offers the strongest enforcement. For simple cases under $5,000 within the 1-year window, the L10 is straightforward.

Step 5: Enforce the Judgment

Getting a judgment or order is only half the battle. You must actively enforce it. File for garnishment, request an examination of the debtor, or use a Writ of Seizure and Sale. Orders do not enforce themselves.

Common Mistakes to Avoid

• Waiting too long: The L10 has a 1-year limitation. Small Claims Court has a 2-year limitation. Missing these deadlines means you lose your claim entirely.
• Not documenting damage at move-out: Without photos and a condition report, damage claims are very difficult to prove.
• Not collecting tenant information: Get the tenant's employer, bank, and new address information before they leave. Once they are gone, this information is much harder to obtain.
• Pursuing uncollectable debts: If the tenant has no income, no assets, and no employment, even a court judgment will not help. Consider the cost-benefit before spending money on filing fees and legal costs.
• Confusing L9 and L10: The L9 is for current tenants (arrears without eviction). The L10 is for former tenants. Using the wrong application wastes time and money.

How Has Bill 60 Affected Rent Collection?

Bill 60 has introduced changes that affect how landlords recover money from tenants:

• 50% arrears rule: In non-payment hearings (L1), tenants must now pay 50% of arrears before they can raise maintenance issues as a defence. This may result in higher arrears orders that can be collected after the tenant leaves.
• Reduced appeal period: The 15-day appeal window (down from 30) means LTB orders for arrears become enforceable sooner.
• Faster processing: With 133 adjudicators and streamlined procedures, L10 hearings should see shorter wait times than in previous years.

Our rent collection team helps landlords across Toronto, Ottawa, and Ontario recover unpaid rent through the LTB, Small Claims Court, and direct collection efforts.

Frequently Asked Questions

Sources

• Residential Tenancies Act, 2006 (Ontario)
• Landlord and Tenant Board — L10 Application
• Ontario — Small Claims Court Guide
• Bill 60 — Protecting Tenants and Strengthening Community Housing Act, 2024

Related Articles

• Small Claims Court for Landlords Ontario
• How to File an L1 Application Ontario
• Cost of Filing With the Landlord Tenant Board
• What to Do When a Tenant Will Not Leave