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The tenant just left and you are standing in the unit looking at a hole in the wall, stained carpets, and a broken door. You want to know what you can do about it. The answer: more than most landlords think, but only if you follow the right steps in the right order.
Ontario's Residential Tenancies Act gives landlords specific rights when a tenant causes damage. Those rights come with procedures. Skip a step, miss a deadline, or serve the wrong notice — and you lose the ability to recover.
This guide covers everything: what counts as damage versus normal wear and tear, what notices to serve during an active tenancy, how to claim compensation after the tenant leaves, what you can and cannot deduct from the last month's rent deposit, and the documentation habits that determine whether you win or lose at the Landlord and Tenant Board.
What Counts as Damage in Ontario
Not every mark, scratch, or worn surface is recoverable. The RTA distinguishes between two categories.
Damage (recoverable):
- Holes in walls beyond normal picture-hanging
- Broken fixtures, doors, locks, or windows
- Stained, burned, or destroyed carpets
- Scratched or gouged hardwood and laminate flooring
- Unauthorized structural modifications (removed walls, added outlets, removed fixtures)
- Pet damage to flooring, walls, trim, or appliances
- Damage from substances (bodily fluids, grease, paint spills)
Normal wear and tear (not recoverable):
- Small nail holes from a few picture hooks
- Scuffed baseboards in traffic areas
- Paint that has faded after several years
- Minor carpet wear in high-traffic paths
- Small chips in older appliances from normal use
The distinction matters. Claiming wear and tear as damage at an LTB hearing signals that your other claims may be exaggerated too. Adjudicators see this regularly. Keep your damage list to actual damage — it makes the rest of your case more credible.
Your Rights During an Active Tenancy
If damage occurs while the tenant is still living in the unit, you have two main tools: the N5 notice and the N7 notice. These are not interchangeable. The wrong one will sink your application.
The N5 Notice — Damage That Can Be Corrected
The N5 Notice covers property damage, interference with other residents, and overcrowding. For damage, the N5 works in two steps.
First N5: The tenant has seven days from receiving the notice to correct the problem — meaning they repair the damage or pay you the cost. If they do, the notice is void and you cannot proceed with an eviction on those grounds.
Second N5 (within six months): If the tenant damages again within six months of the first N5, the second N5 has no void period. You can file an L2 application at the LTB immediately after serving it. There is no waiting period.
To file an L2, you need:
- The completed N5 form (correctly filled out and served — see how-to-serve-notice-ontario-landlords)
- Photographs of the damage with dates
- Repair estimates or invoices
- A timeline of when the damage occurred and when you discovered it
The L2 application covers eviction on grounds of damage, interference, and illegal acts. At the London Regional LTB, L2 hearings currently take 8–14 weeks to schedule from the filing date. Sheriff enforcement after an eviction order takes another 4–8 weeks.
Do not stop accepting rent while the L2 is pending. Refusing rent can be interpreted as ending the tenancy through your own conduct — which complicates your case considerably.
The N7 Notice — Wilful or Serious Damage
The N7 Notice is for wilful or negligent damage that seriously impairs the safety of the unit or the residential complex.
The N7 has no void period. The tenant cannot fix the damage to make the notice go away. The termination date is 10 days from service.
This is the right notice when:
- Damage is clearly intentional (punching walls, deliberate flooding, removing fixtures)
- A fire or significant property event resulted from reckless conduct
- The damage is severe enough to affect habitability or safety
This is the wrong notice when:
- The damage is accidental or the result of gradual neglect
- The issue is messy living without structural impact
- You cannot show the conduct was wilful or at minimum reckless
Using an N7 when an N5 was appropriate — or vice versa — is a common reason applications are dismissed. If you are unsure, the N5 is generally the safer choice. If the conduct was clearly intentional, the N7 eliminates the void period that could let the tenant stay longer.
Your Rights After the Tenancy Ends
When the tenant has already vacated, the N5 and N7 are no longer available. Your rights shift from eviction to compensation. The tool is the L10 application.
The L10 Application for Compensation After Tenancy
An L10 application allows you to claim compensation for damage a former tenant caused, after the tenancy has ended. The LTB can award up to $35,000. For claims above that amount, you would need to pursue the former tenant in Small Claims Court instead.
Critical deadline: you must file within one year of the date the tenancy ended. Miss that window and you lose the ability to claim at the LTB.
To file an L10:
- Complete the L10 form on the LTB portal at tribunalsontario.ca/ltb
- Pay the $53 filing fee (online; $40 in person)
- Attach your evidence: move-in and move-out inspection reports, photographs, contractor invoices
- Serve a copy on the former tenant
- Attend the hearing — video hearings are available for London/Middlesex landlords
The adjudicator will award compensation for the difference between the unit's condition at move-in and its condition at move-out. This is why the move-in inspection report is the single most important document you can have.
If the former tenant also owes unpaid rent, file an L9 application at the same time. You can pursue both in a single hearing.
What You Can and Cannot Deduct From the Last Month's Rent Deposit
This is where most Ontario landlords make a costly mistake. The last month's rent deposit is legally restricted to one purpose: it can only be applied to the last month's rent.
It cannot be applied to:
- Damage repairs
- Cleaning costs
- Unpaid utilities
- Any cost other than rent
If a tenant caused $4,000 in damage to your unit, you cannot keep the deposit to cover repairs. You must apply the deposit to the final month's rent and pursue the damage claim separately through an L10 application or Small Claims Court.
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Keeping a deposit for damage costs is a T1 application waiting to happen. Tenants who know the rules will file against you. The LTB will order the deposit returned with accumulated interest — and may add damages for the improper withholding.
What you must return at move-out:
- Any deposit balance remaining after the last month's rent is applied
- Deposit interest accumulated over the tenancy (see last-month-rent-interest-ontario for how to calculate it)
For a full breakdown of what landlords can and cannot deduct at the end of a tenancy, see what-can-landlord-deduct-from-last-month-rent-ontario.
Documentation: What Wins and Loses LTB Hearings
The landlord who wins at the LTB is almost always the landlord with better documentation. Here is what that looks like at each stage.
Move-In Inspection (Before Handing Over Keys)
A move-in inspection is your baseline. Without it, any dispute about damage turns into a "she said / he said" hearing with no documentary anchor. Adjudicators have limited basis to award damages when there is no move-in record.
Do this on or before the date keys are handed over:
- Photograph every room, wall, ceiling, floor, and appliance
- Note any pre-existing marks, stains, chips, or damage in a written report
- Have the tenant sign the inspection report
- Keep a signed copy — store it off-site or in a cloud folder, not just on your phone
The move-in/move-out inspection is a legal obligation under the RTA. You cannot prevent a tenant from moving out without giving them an opportunity to participate. Get the signature at key handover.
During the Tenancy
- Log every maintenance request and your response (date received, how you responded, what was done)
- Photograph any damage reported by the tenant before beginning repairs
- Keep invoices for all repairs, organized by unit and date
- Document all entry visits with 24-hour written notice records
See landlord-record-keeping-ontario for a simple record system that takes about 15 minutes per month to maintain.
Move-Out Inspection (On or Before the Last Day)
- Photograph every room using the same sequence as the move-in inspection
- Document the condition of every surface and item from the move-in report
- Ask the tenant to sign — if they refuse, note the refusal in writing with the date and time
- Compare conditions and identify damage that goes beyond normal wear and tear
After the Tenant Leaves
- Get repair estimates within the first week — adjudicators look at whether you acted promptly
- Have licensed contractors do the work and provide itemized invoices
- Photograph completed repairs alongside the before-state photographs
- File your L10 application within the one-year window, not whenever it's convenient
Comparing Your Options: Which Tool for Which Situation
| Situation | Right Tool | Filed Where |
|---|---|---|
| Tenant still in unit, damage can be corrected | N5 Notice | LTB (L2 if tenant doesn't fix or damages again) |
| Tenant still in unit, wilful or serious damage | N7 Notice | LTB (L2 application) |
| Tenant has vacated, damage discovered | L10 Application | LTB (within one year) |
| Damage plus unpaid rent after tenancy ends | L10 + L9 | LTB (both filed together) |
| Claim exceeds $35,000 | Civil claim | Small Claims Court or Superior Court |
London and Southwestern Ontario Context
For landlords in London, St. Thomas, and Strathroy, here is what the LTB timeline looks like in practice:
- L2 hearing (damage during tenancy): 8–14 weeks from filing at the London Regional LTB
- L10 hearing (damage after tenancy): Similar 8–14 week window
- Sheriff enforcement (after an eviction order): Additional 4–8 weeks
If your London unit carries a City of London Rental Housing Licence and the damage results in a tenant property standards complaint, you may face a parallel inspection under the City's Property Standards By-law — on top of your LTB application. Outstanding orders can block licence renewal. See london-ontario-property-standards-bylaw for how that process works alongside the RTA.
In St. Thomas and Strathroy, there are no municipal rental licensing programs. The process runs entirely through the LTB and the provincial RTA.
Seven Common Mistakes That Cost Landlords Their Claim
1. No move-in inspection. This is the most common reason damage claims fail. Without a documented baseline, every claim is disputed and the adjudicator has no way to decide who is right.
2. Claiming normal wear and tear as damage. Including faded paint, small nail holes, and worn carpet as damage items signals that your entire claim list may be inflated. Keep it to actual damage.
3. Using the wrong notice during an active tenancy. N5 is for correctable damage. N7 is for wilful damage with no void period. Mixing them up leads to procedural dismissal before the merits are even heard.
4. Keeping the deposit for damage. The last month's rent deposit is for rent only. Applying it to damage repairs exposes you to a T1 application. Pursue damage separately through an L10.
5. Missing the one-year L10 deadline. The clock starts when the tenancy ends, not when you discover the full extent of the damage. File within 12 months.
6. No repair invoices. Saying a repair cost $3,000 without invoices, photos, and a contractor record typically results in a reduced or dismissed claim. The LTB needs documentation.
7. Accepting rent after serving an N5. Accepting rent while an N5 is pending can be treated as waiving the notice or the eviction application. Keep rent records separate and track the application timeline carefully.
FAQ
Can a landlord sue a tenant for property damage in Ontario? Yes — through an L10 application at the LTB (up to $35,000) or directly in Small Claims Court (also up to $35,000). You cannot pursue the same claim in both forums. For claims above $35,000, you would need to use Small Claims Court or Superior Court.
How long does a landlord have to file for property damage after a tenant leaves? One year from the date the tenancy ended. This is a hard deadline. If you miss it, you lose the ability to file an L10 at the LTB. Small Claims Court has a separate two-year limitation period, but LTB filing must happen within twelve months.
Can I deduct damage costs from the last month's rent deposit? No. The deposit can only be applied to the last month's rent. Damage recovery requires a separate L10 or Small Claims claim.
What if the tenant disagrees that the damage exists or says it was pre-existing? That dispute is resolved at the LTB hearing based on evidence. A signed move-in inspection report, dated before-and-after photographs, and contractor invoices are the strongest tools you have. Without a move-in baseline, the adjudicator cannot determine whether the damage pre-existed the tenancy.
Does the N5 or N7 guarantee I can evict the tenant for damage? No. The LTB adjudicator has discretion under RTA Section 83 to refuse or delay an eviction even when a ground is proven — for example, if the tenant repaired the damage after the notice was served, or if eviction would cause significant hardship. Documenting both the damage and your costs clearly improves your chances of receiving the order.
Can a landlord serve an N7 for every type of damage? No. The N7 is limited to wilful or serious damage that substantially impairs safety. Standard accidental or neglect-based damage — even significant damage — typically falls under the N5. Using an N7 for minor or non-wilful damage will usually result in dismissal.
What happens if the former tenant does not show up to the L10 hearing? The adjudicator can issue a default order, but you still need evidence to support the amount claimed. A default order does not guarantee full award — bring your documentation regardless.
If I used a property management company, can they file the L10 on my behalf? Yes. A licensed property manager or paralegal can file and attend on your behalf. The compensation is owed to you as the property owner, not to the management company.
Property damage is one of the most stressful parts of being a landlord — and one of the most preventable when you have a clear documentation system in place. At Prospera Properties, we conduct move-in and move-out inspections, maintain repair logs, and know exactly what the LTB requires before any notice is served. If you manage one or more rentals in London, St. Thomas, or Strathroy and want that process handled for you, visit our services page or contact us to learn what full management includes.