Prospera Properties
← Back to Blog
Ontario Law10 min readJune 17, 2026

Bill 60 Ontario: 5 Rule Changes Every Landlord Must Know (2026)

Bill 60 cut Ontario's N4 notice period to 7 days, ended automatic lease rollovers & more. Here's exactly what changed — and how to use it.

Bill 60 Ontario: 5 Rule Changes Every Landlord Must Know (2026)
E

Ebin Jaison

Founder, Prospera Properties

Share

Bill 60 Ontario: 5 Rule Changes Every Landlord Must Know (2026)

A tenant hasn't paid rent. Under the old rules, you'd wait 14 days just to serve an N4 — then weeks more before the LTB would hear your case. Under Bill 60, that first clock now runs 7 days. That single change alone can shave 4–6 weeks off an eviction timeline in Ontario.

Bill 60 (Fighting Delays, Building Faster Act) passed in November 2025 and introduced the most significant amendments to the Residential Tenancies Act in over a decade. It touches N4 timelines, fixed-term lease renewals, N12 compensation, appeal windows, and maintenance defences at eviction hearings.

Most landlords still don't know all five changes — and at least two of them are traps for the unprepared. This post breaks down every major change, what it means in practice, and exactly how to use it.


What Problem Was Bill 60 Designed to Solve?

The LTB had become severely backlogged, with eviction hearings taking 6–12 months in many cases across Ontario — including London, St. Thomas, and Strathroy. That backlog left landlords exposed to prolonged non-payment and gave tenants little incentive to comply, since enforcement felt distant and uncertain.

Bill 60 attacked the delay problem at multiple pressure points: shorter notice periods, trimmed appeal windows, restrictions on procedural tactics tenants used to adjourn eviction hearings, and clarified rules around personal-use evictions. The result is a landlord environment with meaningfully stronger tools — but only for those who know how to deploy them correctly.


The 5 Key Changes Under Bill 60

1. N4 Notice Period Cut from 14 Days to 7 Days — Here's the New Timeline

This is the change that will affect the most Ontario landlords, most often.

Under the old rules, when a tenant failed to pay rent, you served a 14-day Notice to End Tenancy for Non-Payment of Rent (Form N4) and waited the full two weeks before filing an L1 application with the LTB.

Under Bill 60, that waiting period is 7 days. Here's what the new timeline looks like in practice:

Day Action
1st Rent due — tenant doesn't pay
2nd Serve N4 (after any grace period in lease expires)
9th If unpaid, file L1 application with LTB immediately

That's a full week cut from the front end of the process. Given that the LTB is still scheduling hearings weeks to months out, that earlier filing date matters — it moves you up the queue sooner.

This change applies to all active Ontario tenancies, regardless of when the lease was signed. If you're still waiting 14 days before filing, you're leaving time on the table. For the complete process — correct form, proof of service, and what happens at the L1 hearing — see our complete N4 notice guide.


2. Fixed-Term Leases No Longer Auto-Convert to Month-to-Month

This one catches landlords off guard more than any other change.

Under the old RTA, when a one-year fixed-term lease expired and neither party took formal action, it automatically rolled into a month-to-month tenancy — on identical terms. The tenant stayed indefinitely. You had no meaningful decision point.

Bill 60 ends that automatic conversion. When a fixed-term lease reaches its end date, you now have three genuine options:

  • Negotiate a new fixed-term lease with updated terms (and a permissible rent increase where applicable)
  • Allow the tenancy to continue month-to-month (still available — just no longer the automatic default)
  • Decline to renew, subject to valid grounds under the RTA and proper notice

For landlords managing properties in London, St. Thomas, or Strathroy, this creates a real leverage point at renewal that simply didn't exist before 2026.

Critical caveat: You still cannot evict a tenant purely because their fixed-term lease ended. You need a valid legal ground — personal use, major renovations, sale of the property, etc. Bill 60 changed the automatic renewal mechanics, not the underlying right to tenure. RTA protections for ongoing tenants are fully intact.

For a detailed walkthrough of your options at renewal, see our lease renewal guide for Ontario landlords.


3. N12 Personal-Use Evictions: Give 120+ Days Notice and Waive the One-Month Compensation

When a landlord, family member, or buyer requires the unit for personal use, the landlord serves an N12 notice. Before Bill 60, the landlord owed one month's rent as compensation — or an equivalent unit — regardless of how much notice was given.

Under Bill 60: give the tenant 120 days or more notice on an N12, and the one-month compensation requirement is waived entirely.

On a $2,000/month unit, that's $2,000 saved — just by planning the transition four months ahead instead of two.

The good-faith requirement remains fully in force. If you serve an N12 and the named person doesn't actually move in — or moves in briefly and then re-rents the unit at a higher rate — the tenant can file a T5 application for bad-faith eviction. The penalty can reach 12 months' rent. On that same $2,000/month unit, that's up to $24,000 in exposure. Only use an N12 when the stated use is genuine and the person will actually occupy the unit long-term.

For a full breakdown of the N12 process, requirements, and bad-faith risks, see our N12 notice guide.


4. The Appeal Window Has Been Cut from 30 Days to 15 Days

When the LTB issues an order, both parties have a window to file a motion to review or appeal. The old window was 30 days. Bill 60 cut it to 15 days.

This primarily benefits landlords in eviction proceedings. Under the old timeline, a tenant who received an eviction order could wait nearly a month before taking any action — creating another layer of delay before sheriff enforcement could begin. The shorter window means orders move to enforcement faster.

Landlord Insights

Get practical tips for Ontario landlords — delivered free.

What this means practically:

  • Enforcement starts sooner. Sheriff requests for eviction can begin after the appeal window closes — that's now 15 days, not 30.
  • If you receive an unfavourable decision, act immediately. You no longer have a month to think about it. Get legal advice and file your review within days, not weeks.
  • Tenants have less procedural runway. This was one of the most common delay tactics under the old regime.

5. Tenants Must Pay 50% of Arrears Into Trust Before Raising Maintenance Defences

This is the most impactful change for landlords dealing with long-running arrears — and the most widely misunderstood.

Under the old rules, a tenant facing an L1 eviction for non-payment could raise section 82 issues at the same hearing — maintenance deficiencies, alleged harassment, other landlord obligations. These were frequently used to turn a straightforward non-payment case into a multi-session combined proceeding, often with a rent abatement that reduced or eliminated the arrears on paper.

Under Bill 60: a tenant who wants to raise maintenance-related defences at an eviction hearing must first pay 50% of the outstanding rent arrears into trust with the LTB. If they cannot or will not do this, those defences cannot be heard in the eviction proceeding.

Here's what this does and doesn't mean:

  • ✅ A tenant can still file a separate T6 maintenance application at any time — that right is unchanged
  • ✅ Legitimate maintenance complaints can still be heard on their own merits
  • ❌ Maintenance cannot be used as a procedural shield to delay or offset a clear-cut non-payment eviction

For landlords dealing with tenants who owe $5,000, $10,000, or more in arrears, this changes the calculus at the hearing significantly. For the complete picture of how Ontario evictions work from notice to enforcement, see our step-by-step Ontario eviction guide.


What Bill 60 Does NOT Change

There's real misinformation circulating about the scope of Bill 60. Here's what remains exactly the same:

  • Rent control still applies to most units first occupied before November 15, 2018. The 2026 rent increase guideline is 2.1%. Units first occupied after that date remain exempt.
  • Landlords still cannot evict without cause. Month-to-month tenants cannot be removed simply because you'd prefer them gone.
  • Maintenance obligations are unchanged. Section 20 of the RTA still requires landlords to keep units in a good state of repair. Bill 60 does not reduce this obligation.
  • The LTB still handles all disputes. There is no self-help remedy. If you need possession, you need an LTB order.
  • Security deposit rules are unchanged. Ontario does not permit damage deposits — only last month's rent.
  • Rent increase notice requirements are unchanged. You must still serve a proper N1 with 90 days' notice before any rent increase takes effect. See our step-by-step rent increase guide for the current process.

How to Use Bill 60 Effectively: 4 Practical Steps

The landlords who benefit most from Bill 60 are organized and proactive. Here's how to put the changes to work:

1. Act on N4s the moment rent is late. Don't wait until rent is 3 weeks overdue. Serve the N4 as soon as any grace period in your lease passes, and file the L1 the moment the 7-day window closes without payment. Speed is now structurally built into the process — use it.

2. Calendar every fixed-term lease expiry date. Build a spreadsheet or set a reminder for every lease ending in your portfolio — 90 days out, 60 days out, 30 days out. Bill 60 gives you a real decision point at renewal. Don't let it pass by default and accidentally allow terms you'd rather renegotiate.

3. Plan N12 timelines deliberately. If you know a family member will need the unit, or a sale is coming, calculate whether you can give 120+ days notice. On a $2,200/month unit, that planning saves $2,200 in compensation. Run the math early.

4. Keep your evidence organized for hearings. The 50% arrears rule helps you, but you still need a clean rent ledger, documented proof of N4 service, and records of any communications with the tenant. For a full breakdown of LTB hearing preparation, see our LTB hearing guide for Ontario landlords.


Frequently Asked Questions

Q: When exactly did Bill 60 come into force in Ontario? A: Bill 60 (Fighting Delays, Building Faster Act) received Royal Assent and came into force in November 2025. All key provisions — including the 7-day N4 period, fixed-term lease changes, and the 50% arrears rule — apply immediately to all Ontario tenancies, including leases signed before the legislation passed.

Q: Does the 7-day N4 rule apply to leases that were signed before Bill 60? A: Yes. The shorter 7-day notice period applies to all active Ontario tenancies regardless of when the lease was originally signed. You do not need to issue a new lease or addendum to use the new timeline.

Q: Can a tenant still void an N4 after the 7 days by paying what's owed? A: Yes. A tenant can void an N4 at any point before the LTB issues a formal eviction order by paying all outstanding rent arrears in full. The 7 days is the point at which you can file the L1 — it is not a deadline that automatically terminates the tenancy. The tenant retains the right to pay and stay until an order is issued and enforced.

Q: I served an N4 under the old 14-day rules before Bill 60 passed — is it still valid? A: Yes. An N4 served under the previous 14-day timeline is still valid and does not need to be re-served. Going forward, use the new 7-day timeline. Also verify you are using the most current version of the N4 form from the LTB website, as the form itself may have been updated to reflect the legislation.

Q: Does Bill 60 give me the right to evict a tenant just because their fixed-term lease ended? A: No. Bill 60 removed the automatic conversion to month-to-month at lease end, but it did not create a new right to evict without cause. You still need a valid ground under the RTA — such as personal use (N12), major renovations (N13), or landlord's own use — to end a tenancy. What changed is that the lease no longer rolls over automatically on identical terms; you now have a genuine negotiation moment at expiry.

Q: Does the 50% arrears rule mean tenants lose the right to complain about maintenance? A: No. Tenants retain the full right to file a T6 application about maintenance conditions at any time — that right is completely unchanged. What Bill 60 altered is that in an eviction hearing for non-payment of rent, a tenant who wants to raise maintenance issues at the same hearing must first pay 50% of the outstanding arrears into trust with the LTB. Maintenance and eviction proceedings can still run in parallel — they're just no longer automatically combined into one proceeding at the landlord's expense.

Q: How does Bill 60 interact with the LTB's existing backlog? A: Bill 60 shortens timelines at the landlord's end — how quickly you can serve and file — but LTB scheduling delays are a separate issue. That said, earlier filing dates do move your case up in the queue. Landlords who file L1 applications promptly under the new 7-day rule will generally get hearing dates faster than those who delay, because they entered the queue earlier.


Prospera Properties Manages Every Step Under the New Rules

Bill 60 is genuinely good news for Ontario landlords — but only if you're using it correctly. The new N4 timeline, fixed-term renewal leverage, and N12 compensation rules are real tools. Left unused, they're just legislation.

At Prospera Properties, we've updated all internal processes to reflect Bill 60 timelines — including N4 service, L1 filing, lease renewal workflows, and N12 planning. We handle everything from tenant screening and lease preparation to LTB applications for landlords across London, St. Thomas, and Strathroy.

Get in touch today to learn how we can take the stress of landlording off your plate, or visit our landlord services page to see what full-service property management looks like.

Share

Free Landlord Newsletter

Stay ahead as an Ontario landlord.

New posts on Ontario law, eviction process, tenant screening, and more — no spam, unsubscribe anytime.

Need Help With Your Property?

We manage rentals across London, St. Thomas, and Strathroy. Get a free, no-obligation quote.

Get a Free Quote