A Landlord’s Guide to Tenant Damage in Ontario

As a landlord in Ontario, your rental property is a significant investment. While you expect a certain amount of wear and tear, understanding the difference between normal depreciation and tenant damage to property is crucial for protecting your asset. This guide will walk you through identifying damage, communicating effectively with tenants, resolving disputes, and knowing when to seek legal action.

Damage vs. Normal Wear and Tear: What’s the Difference?

The Residential Tenancies Act (RTA) in Ontario dictates that tenants are responsible for repairing or paying for damage they, their guests, or other occupants cause to the rental unit or common areas, that is not due to normal wear and tear. But what exactly qualifies as each?

Normal Wear and Tear refers to the natural deterioration of a property that occurs with everyday use over time. It’s the expected aging process. Examples include:

• Faded paint or minor scuffs on walls: Light marks from furniture or general living.
• Worn carpet or minor surface scratches on floors: Gradual wear from foot traffic.
• Loose doorknobs or handles: A common occurrence that often just requires tightening.
• Minor discoloration or fading of blinds: Due to sunlight exposure.
• Light scratches on appliances: That don’t affect functionality.

Tenant Damage to Property, on the other hand, goes beyond this expected deterioration. It’s damage caused by negligence, misuse, or intentional acts. Examples of damage to rental property by tenant include:

• Large holes in walls or doors: Beyond small nail holes for pictures.
• Deep scratches, gouges, or water stains on floors: Indicating neglect or misuse.
• Significant burns or large, unremovable stains on carpets: From spills or accidents not properly cleaned.
• Broken windows or doors: From impact or improper handling.
• Missing or broken fixtures: Such as light fixtures, doorknobs, or blinds.
• Unauthorized paint jobs or wallpapering: If not agreed upon.
• Damage from pets: Beyond minor shedding, like extensive scratches or urine stains that cause lingering odor.

Key takeaway: If the issue affects the function, safety, or appearance of the unit beyond what’s considered “normal” and requires repair or replacement, it’s likely damage.

Communicating with Tenants After Damage is Found

Finding damage can be frustrating, but professional and documented communication is key. Here’s what to do if tenant damages property Ontario:

1. Document Immediately: As soon as you discover damage, take clear, timestamped photos and videos. This evidence will be crucial if a dispute arises. Compare these to your move-in condition report and photos.
2. Contact the Tenant in Writing: Send a written notice (email or letter) detailing the damage. Be specific about what was damaged, the date you observed it, and your proposed resolution. Include the photos/videos you took.
3. Outline Expectations: Clearly state that the damage goes beyond normal wear and tear and that the tenant is responsible for its repair or cost.
4. Propose Solutions: Offer options for resolution. This could include the tenant arranging for repairs by a qualified professional (with your approval of the professional and scope of work), or you obtaining quotes and having them reimburse you.
5. Maintain a Paper Trail: Keep copies of all correspondence, including dates and times of any phone calls.

Resolving the Matter Without Legal Action

Often, disputes can be resolved amicably without resorting to the Landlord and Tenant Board (LTB).

• Open Dialogue: Encourage the tenant to discuss the issue. They might have a valid explanation or be willing to resolve it.
• Negotiation: Be open to negotiation. Perhaps the tenant can contribute to the repair cost, or a payment plan can be arranged if the cost is substantial.
• Mediation: The Landlord and Tenant Board (LTB) offers mediation services, which is a voluntary and confidential process. A neutral mediator helps both parties communicate and explore mutually acceptable solutions. This can be a faster and less stressful alternative to a formal hearing.
• Agreement in Writing: If an agreement is reached, put it in writing and have both parties sign it. This prevents future misunderstandings.

When Legal Action is Needed and How to Proceed

If attempts to resolve the matter directly fail, or if the damage is severe and the tenant is uncooperative, legal action through the LTB may be necessary. For tenant damage to property Ontario, here’s when and how to proceed:

• When to Take Legal Action:
  • The tenant refuses to acknowledge the damage or denies responsibility.
  • The tenant refuses to pay for repairs or allow you to make them.
  • The damage is extensive and costly.
  • The tenant has already vacated the unit and has not compensated for the damage.
• How to File with the Landlord and Tenant Board (LTB):
  1. Gather Evidence: This is paramount. You will need:
     • Detailed move-in and move-out condition reports.
     • Timestamped photos and videos of the damage.
     • Copies of all communication with the tenant regarding the damage.
     • At least two detailed repair quotes from qualified professionals, or invoices if repairs have already been completed. The LTB will also consider depreciation when determining the amount a landlord can charge.
  2. File an Application: For seeking compensation for damages from a current or former tenant, you will typically file an L2 Application to End a Tenancy and Evict a Tenant or Collect Money, or if the tenant has already moved out, an L10 Application to Collect Money a Former Tenant Owes. You can find these forms and file online through the Tribunals Ontario Portal.
  3. Serve the Tenant: Once your application is processed, you will receive a Notice of Hearing. You are responsible for properly serving a copy of the application and the Notice of Hearing to the tenant.
  4. Attend the Hearing: Be prepared to present all your evidence to an LTB adjudicator. The adjudicator will make a legally binding decision.

It’s important to remember that landlords cannot unilaterally determine a fixed amount to charge for damages. The LTB is the only body that can order a tenant to pay for damages, and their determination will be based on documented costs and depreciation.

How a Property Manager Can Help

Navigating damage to property by tenant and the intricacies of the RTA can be time-consuming and complex. This is where a professional property manager can be invaluable:

• Detailed Documentation: Property managers excel at creating comprehensive move-in and move-out condition reports with extensive photo and video evidence, which is indispensable for proving damage to the LTB.
• Expert Communication: They handle all tenant communications professionally, ensuring proper notices are served and a clear paper trail is maintained.
• Repair Coordination: They have established relationships with trusted contractors and can efficiently obtain multiple, reliable quotes for repairs, essential evidence for LTB claims.
• LTB Navigation: Property managers are familiar with the Landlord and Tenant Board processes, including the correct forms and evidence required for a damage claim. Their expertise can ensure your claims are presented effectively, maximizing your potential for compensation.
• Proactive Inspections: Regular, lawful property inspections by managers can identify minor issues before they escalate into significant damage, potentially reducing future damage claims.

By entrusting the management of your property to a professional, you can mitigate the stress and complexities associated with tenant damage, ensuring your investment is well-protected and disputes are handled efficiently and effectively.