LTB, Disputes & Enforcement
Avoid $50,000 LTB Fines: The Four T-Applications Every Ontario Landlord Must Know
Tenants can file T1, T2, T5, and T6 applications against Ontario landlords, each worth up to $50,000. Run your rental like a business, use notices correctly, and document everything to protect yourself.
Ontario tenants can file four different LTB applications against a landlord — T1, T2, T5, T6 — each worth up to $50,000, and two filed together can mean $100,000 in exposure plus legal fees. You protect yourself by running your rental like a business: use the correct notices, respond to issues fast and in writing, never take an illegal deposit, and document everything.
The real cost if you don’t know the rules
There’s no license required to become a landlord — which means most owners learn the Residential Tenancies Act’s costliest rules the hard way, after a tenant has already filed.
Do you have a license to be a landlord? Most people don’t. You buy a place, and then you’re on your own. No training. No playbook. That’s when trouble starts. Tenants can file LTB applications for up to $50,000 each. Two forms can mean $100,000, plus legal fees. You need to act like a pro from day one.
What you’ll learn here:
- The four T forms you must know
- Why each can cost up to $50,000
- Simple steps to stay safe
- Why notes and records save you
T2: Harassment and quiet enjoyment
A T2 usually starts with over-communication — chasing late rent across text, email, and more texts looks like harassment, even when it isn’t meant that way.
A T2 is about how your actions affect a tenant’s peace and comfort. The easy way to slip up? Over-texting about rent. Rent is late. You send a text. Then an email. Then more texts. That can look like harassment.
Do this instead:
- Send one clear message
- Keep a record of it
- Serve the proper notice (N4 for non-payment)
- Stop there
One message. One notice. No spam. More messages only give the tenant proof for a T2.
T6: You must maintain the home
Maintenance is a legal obligation, not a courtesy — respond to every tenant report quickly and in writing.
The law says you must repair and maintain the unit. It’s not optional. That means you handle things like:
- Changing filters
- Replacing light bulbs
- Cutting the grass
- Snow removal
- Fixing mold issues
- Maintaining appliances
- Repairing window parts
A tenant reports a problem? Answer fast in writing. Even a short reply helps: “Got it. Plumber coming tomorrow.” That timestamp shows you took action. Get reports from pros. If a plumber says the toilet is clogged from items the tenant flushed, keep that in writing. Now you have proof. You may even serve an N5 if needed.
T5: Bad faith evictions
Using an N12 to move a family member in, then re-renting the unit sooner or pricier than promised, is the classic bad-faith mistake — and tenants actively watch for it.
A T5 is about bad faith. Here’s a common mistake: you give an N12 saying you (or family) will move in. The tenant leaves. Then you rent the place out at a higher price. That is bad faith. The rule is clear: if you use an N12 for personal use, you or your family must live there for at least one year. If you don’t, a tenant can file a T5 for up to $50,000. Tenants are smart. They can set a Google Alert for your address. If your unit shows up online for rent, they get a ping, take a screenshot, and file.
T1: Illegal deposits
Only first month’s rent, a last month’s rent deposit, and an at-cost key deposit are legal — anything more, even by mutual “agreement,” is a T1 waiting to happen.
The market is tight. Some tenants offer six to twelve months upfront. It sounds helpful. It’s not legal.
What you can collect:
- First month’s rent
- Last month’s rent deposit
- A key deposit equal to the actual cost to replace the key or fob
That’s it. Anything more is an illegal deposit. Even if both of you “agree,” the law still says no. A T1 can force you to return the money and pay penalties. Those $500–$800 “key deposits” for two fobs? Illegal if they’re above the real replacement cost.
If it’s not written down, it didn’t happen
At the LTB, proof wins — the landlord with the better paper trail wins the hearing, not necessarily the landlord who was more careful.
This is your golden rule. At the LTB, proof wins. You need to show what you did and when you did it.
Keep:
- Timestamped messages with tenants
- Receipts from contractors
- Professional reports and photos
- Written agreements for things like lawn care
- Screenshots of important chats and posts
Property management software makes this easy. Every ticket, note and reply. When a T2 or T6 shows up, you already have your file.
Treat it like a business
A managed rental with real documentation is protected from $50,000 mistakes — and the management fee is tax-deductible, unlike an LTB order.
Landlording is not a hobby. It is a business. Businesses use systems. Documentation. They follow the law. They get help when they need it. Don’t have time to do it all? That’s okay. That’s why property management exists. The CRESI Landlord Protection Program helps everyday landlords get education, smart communication, and rock-solid records. That protects you from $50,000 mistakes. Bonus: management fees are a business expense. You can deduct them. A $50,000 LTB order? You can’t.
Your next steps
Six habits keep a landlord out of T-application territory.
- Treat your rental like a business
- Learn the four T forms (T1, T2, T5, T6)
- Use legal notices the right way (like N4, N5, N12)
- Fix issues fast and in writing
- Never take illegal deposits
- Save every message, receipt, and report
Non-payment (the four T-forms)
Non-payment of rent (N4) applications make up the largest single share of the LTB’s caseload — and the current backlog means even a straightforward non-payment case can sit in queue for a full hearing.
Currently, the board is backlogged with 53,000 cases, and the majority of these are non-payment of rent applications (N4). According to the Landlord and Tenant Board’s 2022–2023 annual report, there were a total of 64,450 landlord applications, with 37,690 being N4 non-payment of rent applications — against only 8,455 tenant applications in the same period. The sheer volume of these cases reflects a system that is struggling to serve landlords or tenants efficiently, and contributes to Ontario’s broader housing-supply pressure, since it makes the government-mandated cost of running a rental less predictable for owners.
Why require full hearings for straightforward cases of unpaid rent? A proposed reform would let the LTB resolve simple non-payment cases faster, through a suggested process:
- Administrative review process. Non-payment of rent applications should not automatically go to a full hearing. Instead, they should first go through an administrative review process to determine whether a full hearing is necessary.
- Filing and notification. Once an N4 Notice is served, the landlord would file it with the LTB along with a sworn affidavit and relevant evidence. The LTB would immediately contact the tenant, requesting a response with evidence of payment, any payment plans, and their ability to repay the outstanding amount.
- Administrative resolution. If deemed suitable for administrative processing, the LTB could make a ruling based on written submissions — setting a payment plan (with consequences if it isn’t followed) or issuing an eviction order if necessary.
- Full hearing only if necessary. If there are Section 83 considerations, or if the tenant files a T5 application, the matter would then be scheduled for a full hearing.
This kind of triage would let the LTB resolve straightforward non-payment cases more efficiently, freeing capacity for more complex matters. In the meantime, landlords can take a proactive step: registering tenant rent payments with a service like FrontLobby.com lets you report both positive and negative payment histories, contributing to a more transparent rental industry and giving you a documented record if a case does proceed to a full hearing.
Guest contribution: Kayla Andrade, Founder, Ontario Landlords Watch. This section originally appeared in the Ontario Landlords Watch Facebook group and is reprinted with permission.
Want the full conversation? Listen to the Ontario Landlord Series podcast with Rob Di Lisi from Stonegate Legal Services, and check out Kayla Andrade’s episode on the same series for more on non-payment reform.