The True Cost of a Bad Tenant in Ontario: What Most Landlords Don't Calculate

By Solutions Property Management — Thu Apr 02 2026

Bad tenants cost Ontario landlords far more than most realize. Here's a full breakdown of the real cost — including rent arrears, damage, legal fees, and the time nobody accounts for.

Component 1: Rent Arrears

The most visible cost. If a tenant stops paying rent in month 3 of a 12-month lease, and

the eviction process takes 8 weeks from the N4 to enforcement, you are looking at

approximately 10 weeks of unpaid rent — roughly 2.5 months.

On a $1,900 Hamilton unit: 2.5 months at $1,900 = $4,750 in lost rent.

Component 2: Property Damage

The range here is wide. Minor damage — holes in walls, damaged fixtures, dirty appliances — runs $500 to $2,500 to repair. More serious cases involving deliberate damage, unauthorized pets, or neglect can easily reach $10,000 to $20,000. A significant percentage of landlords do not recover these costs through the LTB, either because they lack proper documentation or because the tenant is uncollectable after they leave.

Component 3: Legal and Administrative Costs

• LTB filing fees: $201 for an L1 application.
• Paralegal representation if needed: $1,500 to $3,500 for an eviction hearing.
• Sheriff enforcement fees: approximately $400 to $600.

Legal cost range for a straightforward eviction: $2,100 to $4,300.

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