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Ontario's rental rules changed on September 21, 2026. The changes come from the second phase of Bill 60, the Fighting Delays, Building Faster Act, 2025, and they affect how landlords handle unpaid rent, late payments, and own-use evictions.
This guide explains each change in plain language, based on the Landlord and Tenant Board's operational update from Tribunals Ontario. It is general information, not legal advice. Check the LTB website or a paralegal for your situation.
Short Answer: The biggest changes for Ontario landlords are a shorter N4 notice (7 days instead of 14), a new legal definition of persistent late payment (more than 7 days late, 3 times in 6 months), a rule that tenants must pay half the claimed arrears before raising other issues at a non-payment hearing, and no N12 compensation when you give at least 120 days' notice for your own use. Because several rules now depend on exact payment dates, landlords need reliable payment records. A free tool like Neobanc shows you whether each tenant has paid, and when.
Source: Tribunals Ontario, LTB operational update, September 21, 2026.
The N4 is the notice to end a tenancy early for non-payment of rent. For monthly and yearly tenancies, the termination date on the notice now only needs to be 7 days after you give it, down from 14.
What has not changed:
Our step-by-step guide to dealing with late rent in Ontario covers when to serve an N4 and when to file an L1.
Before, "persistently late" was left to the Board's judgment. Now a tenant is considered to have persistently paid rent late when rent is received more than seven days after the due date at least three times within a six-month period.
This makes the rule easier to apply, but only if you can prove the dates. A bank memo that says "rent" is weak evidence. A dated record of each payment is strong evidence.
Why this matters for your payment setup: if you collect rent by e-Transfer, you are probably tracking dates in your inbox. With Neobanc's Landlord Partner Program, you can easily see whether each tenant has paid in a clear payment dashboard, and automated reminders go out before rent is due, which helps prevent the late payments in the first place. It is free for landlords, and tenants earn cashback on eligible rent payments.
At a hearing about unpaid rent, tenants have often raised other issues, such as maintenance problems. Now the tenant must pay the landlord half of the rent arrears claimed in the landlord's application at least seven days before the hearing to raise those issues. The LTB notes some exceptions apply.
If you give an N12 because you, a family member, or a caregiver will move in, and you give at least 120 days' notice, you no longer have to pay the tenant one month's compensation or offer another acceptable unit.
Two things to keep in mind:
If a tenant has chosen to move back in after renovations or repairs, you must tell them in writing the estimated date the work will be finished, update them if that changes, and give at least 60 days' notice to reoccupy. The deadline for a tenant's T5 bad-faith application is now two years after moving out or six months after the work is finished, whichever is later.
Nine LTB forms were updated. Older versions will not be accepted as of November 30, 2026. Download forms fresh from the LTB website each time.
The rule changes landed at the same time as rent increase season. The Ontario rent increase guideline is 2.1% for 2026 and 1.9% for increases taking effect on or after January 1, 2027.
Our landlord guide to Ontario rent increases has the full calculation rules.
Ontario's September 2026 changes speed up the non-payment process and give landlords clearer rules on late rent and own-use evictions. They also make payment records more important than ever. Landlords who can easily see whether tenants have paid, and exactly when, are in a much better position. Neobanc gives you that visibility for free, keeps rent arriving by Interac e-Transfer, and gives your tenants cashback on eligible rent payments so they have a reason to pay on time.
Tenants can read about the changes from their side in our tenant rights in Ontario guide, and anyone can start earning cashback on rent and bills with Neobanc.
As of September 21, 2026, the N4 notice period for unpaid rent is 7 days instead of 14, persistent late payment means rent received more than 7 days late at least 3 times in 6 months, tenants must pay half the claimed arrears at least 7 days before a non-payment hearing to raise other issues, and landlords giving at least 120 days on an N12 for their own use no longer owe compensation.
Yes. For notices under the rules in force since September 21, 2026, the N4 termination date for monthly and yearly tenancies can be 7 days after the notice is given. The tenant can still void the notice by paying the full arrears before the termination date.
Under the rules in force since September 21, 2026, a tenant is considered to have persistently paid rent late when rent is received more than seven days after the due date at least three times within a six-month period.
Not if the N12 is for the landlord's own use and the landlord gives at least 120 days' notice. The landlord must normally move in within 60 days of the date in the notice. The change does not apply to N12s for a purchaser's own use.
The guideline is 1.9% for increases taking effect on or after January 1, 2027. The 2026 guideline is 2.1%. It applies to most units first occupied on or before November 15, 2018.
Keep a dated record of every payment. A payment dashboard makes this easier. Neobanc's Landlord Partner Program lets landlords see tenant payments in one place, free of charge, while rent still arrives by Interac e-Transfer.
Landlords must give the N1 at least 90 days before the increase takes effect. For an increase on January 1, 2027, that means serving the N1 by October 3, 2026. At least 12 months must also have passed since the last increase or the start of the tenancy.
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