By Krystalynn Singh | September 30, 2025
For many Ontarians, investing in rental property seems like a straightforward way to generate income. But ask anyone who has appeared before the Landlord and Tenant Board (LTB), and they’ll tell you the same thing: managing rental property is far more complex than it appears.
While property ownership is often marketed as a “hands-off” investment, the reality is that Ontario’s legal framework places strict obligations on landlords. A simple mistake — like serving the wrong notice or neglecting a repair — can turn into costly disputes, lost rent, or even fines.
So what are the hidden legal risks landlords need to watch for? And how can they avoid them?
1. The Notice Trap
The most common landlord error in Ontario is improper notice. Whether it’s an N4 for non-payment, an N5 for disturbing other tenants, or an N11 mutual agreement to end tenancy, the forms must be filled out exactly as prescribed. Even a small mistake — the wrong termination date, a typo in the tenant’s name, or serving the form incorrectly — can cause the LTB to dismiss your case.
Dismissal means lost time, unpaid rent, and often having to start the process all over again. For landlords already stretched thin, this can be financially devastating.
Solution: If you’re not confident with the paperwork, consult a licensed paralegal or professional property manager who deals with these forms daily.
2. Repairs and Maintenance Obligations
Many landlords underestimate their responsibility for keeping rental units in a state of good repair. Under the Residential Tenancies Act (RTA), landlords must maintain the property even if the tenant knew about the issue before moving in, or if the tenant caused the damage (though the tenant can later be held financially responsible).
Failure to act promptly on maintenance issues can lead to compensation orders at the LTB. In some cases, tenants have been awarded rent abatements worth months of rent because repairs were delayed.
Solution: Treat repair requests as urgent, keep written records, and budget for ongoing maintenance.
3. The Screening Grey Area
While landlords have the right to screen applicants, Ontario’s Human Rights Code places limits on what information they can request or use to make decisions. Asking about family status, place of origin, or whether a tenant receives social assistance can lead to discrimination claims.
Even well-meaning landlords can find themselves in trouble if they choose one tenant over another for reasons that appear discriminatory on paper.
Solution: Focus strictly on income, credit history, references, and past rental performance — and keep records of all applications in case your decision is challenged.
4. Vacant Property Liability
A vacant unit isn’t just lost rent. It also carries risks: insurance coverage may lapse after 30 days of vacancy, municipal property standards officers may issue fines if the yard isn’t maintained, and utilities must still be managed.
Many landlords don’t realize they remain legally responsible for these issues, even if no one is living in the unit.
Solution: If you can’t attend to the property regularly, hire a property manager to ensure compliance. The cost is almost always lower than the fines and risks of neglect.
5. Evictions Are Never “Simple”
Popular media often portrays eviction as something a landlord can accomplish with a lock change. In Ontario, this is not only false — it’s illegal. Only the Sheriff’s office can enforce an eviction order, and doing otherwise can expose a landlord to fines or lawsuits.
Even “slam-dunk” cases can take months to work their way through the LTB, especially with current delays.
Solution: Landlords should prepare for evictions as a process, not a quick solution, and build contingency plans for months of unpaid rent.
The Bottom Line: Professionalism Pays
For small landlords, these legal risks can feel overwhelming. But they also highlight the importance of treating property management like a business. Keeping accurate records, responding promptly to maintenance, using the correct notices, and seeking professional advice when needed are the best ways to stay compliant.
The law in Ontario leans heavily toward tenant protection. That doesn’t mean landlords are powerless — but it does mean they need to be proactive, diligent, and informed.
By understanding the hidden risks and addressing them upfront, landlords can protect both their investment and their peace of mind.
Krystalynn Singh is a Windsor entrepreneur, property manager, and paralegal student. She is the owner of Dream Team Property Management & Renovations, where she helps property owners and investors navigate landlord-tenant challenges, real estate management, and property compliance. She can be reached at info@dreamteamproperty.ca or on LinkedIn.
