What Happens If a Tenant Damages Your Property in Ontario?
By Solutions Property Management — Sat May 30 2026
Tenant damage in Ontario? Here's what your rights are, how to document it, how to recover costs through the LTB, and what the process looks like in 2026.
What Happens If a Tenant Damages Your Property in Ontario?
Discovering that a tenant has damaged your property is one of the most frustrating experiences in rental ownership. Whether it is a broken door, damaged flooring, holes in walls, or more serious destruction, you have rights in Ontario — and a clear process to recover your costs.
Here is exactly what to do when a tenant damages your property.
Normal Wear and Tear vs Actual Damage
The first thing to establish is whether what you are looking at is damage or normal wear and tear. This distinction matters because Ontario's Residential Tenancies Act does not allow landlords to charge tenants for normal wear and tear.
Normal wear and tear includes: minor scuffs on walls, small nail holes from pictures, gradual carpet wear in traffic areas, and faded paint over several years.
Tenant damage includes: large holes in walls, broken fixtures, stained or torn flooring beyond normal use, broken windows, burns, unauthorized alterations, and pet damage not caused by normal pet presence.
Documenting the state of the unit at move-in and move-out is the foundation of any damage claim. A move-in inspection report with photos, signed by the tenant, is your most important evidence.
During the Tenancy: N5 Notice
If you discover damage while the tenant is still in the unit, you can serve an N5 notice — Notice to End a Tenancy for Interfering with Others, Damage, or Overcrowding.
The N5 gives the tenant 7 days to repair the damage or pay the cost of repairs. If they remedy it within that period, the notice is void. If they do not, or if they cause damage again within 6 months, you can file an L2 application with the LTB for eviction and compensation.
After Move-Out: Filing a Claim with the LTB
If the tenant has already moved out and you discover damage beyond the last month's rent deposit, you can file an L10 application — Application to Recover Compensation for Damage — with the LTB.
- You must file the L10 within one year of the tenant vacating.
- The LTB can order the tenant to pay for the actual cost of repairs.
- You will need documentation: move-in and move-out inspection reports, photos, contractor quotes or invoices, and a calculation of the damage amount.
What About the Last Month's Rent Deposit?
In Ontario, landlords can collect a last month's rent deposit but not a separate damage or security deposit. The last month's rent deposit can only be applied to the final month of rent — not to damage costs.
This is a critical distinction. If a tenant owes rent and has also caused damage, these are two separate matters, each requiring their own documentation and potentially their own LTB application.
How to Maximize Your Chance of Recovery
- Conduct a thorough move-in inspection and have the tenant sign it. Photos with timestamps are essential.
- Conduct a move-out inspection as close as possible to the tenant's departure date. Compare directly to the move-in report.
- Get contractor quotes quickly. LTB adjudicators want to see actual repair costs, not estimates.
- Keep records of all communication with the tenant about the damage.
Frequently Asked Questions
**Q:** Can I deduct tenant damage from the last month's rent deposit in Ontario? **A:** No. The last month's rent deposit in Ontario can only be applied toward the final month's rent. Damage costs must be claimed separately through an L10 application to the LTB.
**Q:** What is considered normal wear and tear in Ontario? **A:** Normal wear and tear includes minor wall scuffs, small nail holes, faded paint after several years of occupancy, and gradual carpet wear in high-traffic areas. It does not include broken fixtures, large holes, stains, burns, unauthorized modifications, or pet damage beyond ordinary presence.
**Q:** How long does a landlord have to file for damage in Ontario? **A:** You must file an L10 application with the LTB within one year of the tenant vacating the unit. Filing late will result in your application being dismissed.
**Q:** Can a property manager help me claim tenant damage? **A:** Yes. A good property manager maintains thorough move-in and move-out documentation as a matter of course, which is the foundation of any successful damage claim. They can also file the L10 application and represent your interests at the hearing.
Ontario landlords have real rights when a tenant damages their property. The key is
documentation from day one — a thorough move-in inspection with photos is your most
important asset.
At Solutions Property Management, every unit we manage gets a fully documented move-in and
move-out inspection as standard. This protects our clients and ensures that any
damage claim has the evidence it needs.