Tenant-Caused Property Damage in Ontario: How Landlords Can Claim Compensation

Discovering that your rental property has been damaged by a tenant can be a frustrating and costly experience. Landlords often wonder what their rights are and how they can legally recover the costs of repairs. In Ontario, the process for claiming compensation from a tenant is governed by strict rules within landlord and tenant law, and a misstep can cost you a great deal of time and money.

This guide will walk you through the key legal steps you need to take, from documenting the damage to filing a formal application with the Landlord and Tenant Board (LTB).

What is “Damage” vs. “Normal Wear and Tear”?

Before you can claim compensation, it’s crucial to understand the legal distinction between tenant-caused damage and normal wear and tear.

• Normal Wear and Tear is the natural deterioration of a property from everyday use. This includes minor scuffs on walls, faded paint, or thinning carpets in high-traffic areas. Landlords are responsible for this type of deterioration.
• Tenant-Caused Damage is any deterioration that is the result of a tenant’s intentional or negligent actions. This includes large holes in walls, broken doors, extensive stains on carpets, or damaged appliances from misuse. A landlord can legally claim compensation for this type of damage.

Thorough documentation is the key to proving that damage is beyond normal wear and tear.

The Legal Process: Step-by-Step

Step 1: Document the Damage Thoroughly

Documentation is your most powerful tool. You must be able to prove to the LTB that the tenant caused the damage and that it is not a result of normal aging.

• Photos and Video: Take clear, timestamped photos and videos of the damage.
• Communication: Keep a record of all correspondence with the tenant regarding the damage.
• Move-In/Move-Out Reports: Use a detailed move-in and move-out inspection report to show the condition of the property before and after the tenancy.

Step 2: Calculate the Cost of Repairs

You cannot simply charge an arbitrary amount for the damage. You must provide clear evidence of the costs.

• Depreciation: The LTB will not order a tenant to pay for a brand-new replacement. They will factor in the depreciation of the item. For example, if a 10-year-old carpet is damaged, the LTB will award the depreciated value of that carpet, not the cost of a new one.
• Invoices and Quotes: Gather at least two detailed quotes or invoices from qualified professionals for the repair or replacement.

Step 3: File an Application with the LTB

If the tenant refuses to pay for the damages, your only legal recourse is to file a formal application with the LTB. This is the official body that can order a tenant to pay compensation.

• Choosing a Form: The form you use depends on the situation. If the tenant has already moved out, you would typically use a Form L10, “Application to Collect Money a Former Tenant Owes.”
• Deadline: You have one year from the date the tenant moved out to file this application.

For a full explanation of the forms and application process, you can refer to the official Landlord and Tenant Board website. It is important to note that the process for claiming compensation for damages is separate from the procedure for evictions in Toronto, which involves its own set of rules and forms.

How a Landlord and Tenant Lawyer Can Help

Navigating the LTB process can be complex and intimidating, especially when you are trying to recover significant costs. An experienced landlord lawyer Toronto can be your most valuable partner.

A lawyer can help you:

• Ensure your documentation is legally sound and compelling.
• File the correct application and represent you at the hearing.
• Build a strong case that accounts for depreciation and meets all of the LTB’s requirements.

In addition to property damage and eviction, a lawyer can also assist with other legal requirements, such as ensuring your property is compliant with the new licensing for multi-tenant houses in Toronto by-law.

From Damage to Resolution

Don’t let a tenant’s damage to your property become a permanent financial loss. Understanding your rights and the legal process is the first step toward a solution. The keys to success are thorough documentation and a clear, well-supported claim.

If you need a legal partner to help you through this challenging time, we invite you to contact our team for a consultation. Our experienced lawyers can provide the expert guidance you need to ensure a smooth and successful outcome.