How to Collect Unpaid Rent After a Tenant Moves Out in Ontario
Are you a landlord and want to know how to collect unpaid rent after a tenant moves out in Ontario? When rent goes unpaid and a tenant moves out, the situation quickly becomes stressful for landlords. We understand how frustrating it feels when someone leaves without paying what they owe. Every dollar counts, especially when mortgage payments, repairs, and property expenses continue. In Ontario, there are clear legal steps that help landlords collect unpaid rent, even after the tenant leaves the property. In this guide, we break down how to collect unpaid rent after a tenant moves out in Ontario, using practical steps, simple language, and information from the Landlord and Tenant Board (LTB) and government resources.
Updated June 2026: This article has been updated to reflect the LTB’s post‑tenancy L10 process, the one‑year filing deadline, and the $50,000 monetary limit for the LTB and Small Claims Court.
Let’s jump in.
Experience hassle-free property management with GOLFI Property Management’s services.
What Happens When a Tenant Moves Out Without Paying Rent?
Once a tenant moves out, the situation changes from a rental dispute to a debt-collection matter. Even though the tenancy is over, the unpaid rent does not disappear. Landlords still have the legal right to recover outstanding rent, utility charges, and any damages.
However, there is an important rule:
For tenants who moved out on or after September 1, 2021, landlords must file an L10, Application to Collect Money a Former Tenant Owes with the Landlord and Tenant Board (LTB) to pursue unpaid rent, utilities, or damages, and they must do this within one year of the date the tenant moved out.
Only after the landlord obtains an order from the LTB can they use the civil courts to enforce that order (for example, by garnishing wages or seizing assets), not to start a new claim.
Step-by-Step: How to Collect Unpaid Rent After Tenant Moves Out in Ontario
1. Gather Evidence and Tenant Information
Before starting the collection process, we gather:
-
The lease or rental agreement
-
Payment records or bank statements
-
Move-out inspection photos
-
Emails, texts, or written notices about overdue rent
-
The tenant’s forwarding address, if known
Strong records make the claim easier to win, especially at an LTB hearing and if you later need to enforce the order through the courts.
2. Send a Written Demand for Payment
We send a written notice reminding the former tenant of the balance owing. This isn’t required, but it shows we tried to resolve the issue before escalating.
A clear payment request includes:
-
Total amount owed
-
Deadline for payment
-
Our contact information
-
Bank or e-transfer details for repayment
Surprisingly, many tenants do pay after receiving a formal demand, because they want to avoid court or a collection agency.
3. File an L10 Application with the Landlord and Tenant Board (LTB)
This is the main legal method in Ontario to collect unpaid rent after a tenant leaves when the tenancy is covered by the Residential Tenancies Act (RTA) and the tenant moved out on or after September 1, 2021.
Landlords can file a Form L10 – Application to Collect Money a Former Tenant Owes with the LTB for: Unpaid rent
– Unpaid utilities or other charges
– Damages to the rental unit
– Certain other costs related to the tenancy
The LTB can make a money order of up to $50,000, which matches the current Small Claims Court monetary limit that took effect on October 1, 2025.
If the former tenant does not pay after the LTB issues its order, the landlord can then file that order in the civil court system (for example, Small Claims Court) to enforce it through wage garnishment or other collection options.
4. Use a Collection Agency
If we prefer not to go through court, a licensed collection agency can pursue the unpaid rent on our behalf. Agencies contact the tenant, trace their location, report the debt to credit bureaus, and negotiate payment.
This can affect the tenant’s credit score for years, which motivates many former tenants to settle the debt.
5. Recover Payment from the Tenant’s Guarantor or Co-Signer
If the lease included a guarantor, they are legally responsible for covering unpaid rent after the tenant leaves. In that case, the collection process is much faster because guarantors usually pay to avoid legal action.
Can Landlords Deduct the Debt from the Tenant’s Deposit?
In Ontario, deposits are only allowed for last-month’s rent, not security deposits. This means we can apply the last-month’s rent deposit toward unpaid rent, but not toward damages or other costs. Everything else must be collected separately.
What if the Tenant Left the Province?
Many landlords worry about this scenario. Even if the former tenant moved to another province, an LTB order for money can still be enforced. Landlords can file the LTB order with the civil courts in Ontario, and in many cases those judgments can then be recognized and enforced in other provinces under their own court procedures.
How Long Do Landlords Have to Collect Unpaid Rent?
For tenancies covered by the RTA where the tenant moved out on or after September 1, 2021, landlords have up to one year from the date the tenant moved out to file a Form L10 with the LTB for unpaid rent, utilities, or damages.
If the landlord wants to claim more than $50,000, or the situation is not covered by the RTA (for example, some shared‑accommodation or non‑residential arrangements), they may need to proceed in the Superior Court of Justice instead of through the LTB.
How Golfi Property Management Helps Landlords Collect Unpaid Rent
At Golfi Property Management, we manage rental properties across Hamilton, Halton, Niagara, and Brantford, and we deal with unpaid rent disputes regularly. Because we handle tenant screening, rent collection, inspections, and legal issues, we help landlords avoid these problems before they happen.
When unpaid rent occurs, we assist with:
-
Gathering documentation
-
Communicating with former tenants
-
Legal processes, including LTB applications and enforcement of orders through the courts
-
Working with collection agencies
-
Preventing future rental losses through stronger screening
Our goal is to protect landlords from financial loss while keeping everything lawful and fair.
Tips for Landlords to Prevent Unpaid Rent in the Future
Really, many rentals have a property management company like us, handling everything in situation even like these, bad tenants can happen, and so do evictions, both are common it happen more often than you think.
To reduce the chance of unpaid rent, we suggest you follow these steps with every tenant:
-
Strong tenant screening
-
Reference and employment verification
-
Prompt rent reminders
-
Clear communication and written agreements
-
Regular inspections
-
Online rent payment systems
A well-managed property dramatically lowers rent issues and keeps good tenants long-term.
Conclusion
Unpaid rent can feel overwhelming, but landlords in Ontario have strong legal options to recover debt even after the tenant moves out. With good documentation, written notices, and a timely Form L10 application to the LTB (and enforcement of any order through the courts if needed), it is possible to collect unpaid rent legally and fairly. And with proper property management, the chance of future rent loss becomes much smaller.
FAQs
1. Can a landlord collect unpaid rent after a tenant moves out in Ontario?
Yes. For most residential tenancies covered by the RTA, landlords can collect unpaid rent after move‑out by filing a Form L10 with the LTB within one year of the tenant moving out. Once the landlord has an LTB order, they can use the civil courts to enforce it if the former tenant still does not pay.
2. Can a landlord take money from the security deposit for unpaid rent?
Ontario does not allow security deposits. Only last-month’s rent deposits exist, and those can be applied to unpaid rent only.
3. What is the easiest way to collect unpaid rent from a former tenant?
The most common approach is to send a written demand first, and if the tenant does not pay, file a Form L10 with the LTB within the one‑year deadline.
4. Can collection agencies recover unpaid rent after move-out?
Yes. Licensed collection agencies can contact tenants, report debt to credit bureaus, trace their location, and negotiate repayment.
5. How much unpaid rent can landlords claim?
For RTA‑covered residential tenancies, landlords can claim up to $50,000 at the LTB using a Form L10 when pursuing a former tenant. Claims above $50,000 usually have to be started in the Superior Court of Justice instead
This article is for general information only and is not legal advice. Landlords and tenants should consult a legal professional or the Landlord and Tenant Board about their specific situation.