Legal Matters Toronto can provide crucially important advice and targeted action to mitigate unexpected vacancies. Often, landlords hire property managers who attend to situational property needs. But when the property is tenanted and the management firm lacks in-house legal, ordinary problems can escalate into unexpected and costly litigation when a property suddenly becomes vacant. Ms. Singh, in this article, exposes the many and varied risks of vacant properties that, as a landlord, you will want to prevent.
For many property owners, a vacant unit feels like little more than lost income. No tenants, no rent — but also no noise, no complaints, and no hassle. At first glance, an empty property might even feel like a break.
The truth is far different. In Ontario, when your property is vacant, it is not really empty at all. It still carries legal, financial, and safety obligations that owners often overlook. And those overlooked responsibilities can turn into costly surprises — fines, cancelled insurance coverage, and even lawsuits.
The Insurance Gap: Coverage Can Vanish After 30 Days
Most property insurance policies in Ontario contain a little-known clause: if a property is left vacant for more than 30 days, coverage is either voided or severely limited.
That means if there’s a break-in, a burst pipe, or even a fire after the 30-day mark, your claim may be denied. Many landlords only discover this after the fact, when an insurer refuses to cover tens of thousands of dollars in damage.
The takeaway for lawyers: Clients often fail to notify insurers about vacancy. Advising them early about the importance of “vacant property coverage” can prevent litigation against insurers later.
By-Law Trouble: The City Is Still Watching
A vacant home doesn’t escape the watchful eye of by-law enforcement. Municipalities like Windsor actively issue fines for unshoveled sidewalks, unmowed lawns, and garbage left on the property.
Under Ontario’s Municipal Act, 2001, municipalities have broad authority to enforce property standards. If the city has to arrange snow removal or lawn care, those costs are added to the tax bill — along with administrative fees.
The takeaway: Vacant or not, properties must be maintained to municipal standards.
Utility Risks: Pipes Don’t Care About Vacancy
Many landlords shut off utilities during vacancies to save money. While the idea makes sense on paper, the risk is huge.
In colder months, a property without heat is vulnerable to frozen pipes — which can burst and cause catastrophic flooding. Even in summer, lack of ventilation and climate control can lead to mold, mildew, and long-term damage.
The takeaway for property lawyers: Remind clients that neglecting utilities is a foreseeable risk. If tenants or future purchasers are affected, owners could face liability under Ontario’s Occupiers’ Liability Act.
Safety and Liability: Who’s Responsible if Someone Gets Hurt?
Vacant properties often attract trespassers — whether it’s curious neighbors, teenagers, or individuals looking for shelter. If someone enters a vacant unit and is injured, the property owner can be held liable.
In one Ontario case, a trespasser injured on loose steps at a vacant property successfully claimed damages because the owner had not secured the premises. Courts found negligence despite the trespass.
The takeaway: Property owners remain occupiers under the Occupiers’ Liability Act, which means a duty of care exists even when the unit is empty.
Missed Income: The Silent Cost of Vacancy
Beyond fines and risks, the most obvious cost is lost rental income. In Windsor, where the average rent for a three-bedroom unit is about $2,400, even a single vacant month represents a substantial hit to cash flow.
What many landlords don’t calculate is the opportunity cost: not only are they losing rent, but they are also delaying mortgage paydown, missing tax deductions, and reducing long-term appreciation.
The takeaway for real estate lawyers: When structuring agreements of purchase and sale, or advising investors, factoring in vacancy risk strengthens due diligence.
Professional Management: Turning Risk Into Stability
So, what can owners do to protect themselves from the hidden risks of vacancy? The answer lies in professional systems and proactive management.
A property manager can:
- Conduct regular inspections to ensure safety and compliance;
- Handle lawn care, snow removal, and maintenance;
- Keep utilities at safe levels;
- Advertise vacancies and screen tenants quickly to reduce downtime; and
- Maintain proper documentation for insurance and liability protection.
In many cases, the cost of management is lower than even one month of vacancy.
Real-World Example: The Cost of Neglect
Consider this scenario: A Windsor homeowner left their rental property vacant for three months while trying to sell it. Utilities were shut off, the yard grew wild, and a water pipe burst in January. The insurance company denied the claim because the property had been vacant longer than 30 days without notification.
Result? Over $40,000 in repair costs — and a by-law fine of $450 for the yard. A professional property manager could have prevented both.
The Bottom Line: An Empty Property Is Full of Obligations
Owning rental property in Ontario is not just about collecting rent — it’s about managing risk. And nowhere is that clearer than during vacancy.
From insurance coverage to by-law compliance, utilities to liabilities, the hidden costs of vacancy can pile up fast. The key is to plan ahead, stay compliant, and never assume that “empty” means responsibility-free.
For landlords and investors, treating vacancies with the same urgency as active tenancies is the difference between protecting your investment and watching it drain away. For lawyers advising property owners, highlighting these risks early can save clients from costly litigation — and demonstrate real value in legal counsel.
