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Property Damage Guide

How to handle tenant-caused property damage in Ontario. Documentation, N5 notices, and LTB applications explained.

January 1, 0001 4 min read
N5

Dealing with Property Damage

When your tenant causes damage beyond normal wear and tear, here's what you can do.

Understanding property damage

Not all damage is equal under the Residential Tenancies Act:

TypeExampleLandlord Action
Normal wear and tearFaded paint, minor scuffs, worn carpetLandlord’s responsibility
Tenant-caused damageHoles in walls, broken appliances, stained carpetTenant responsible
Willful damageIntentional destruction, vandalismGrounds for eviction

Your options for property damage

1. Deduct from last month’s rent deposit

Not recommended. The deposit is only for rent, not damage. Using it for damage can create legal issues.

2. Request the tenant pay/repair

Have a conversation first. Many tenants will agree to pay for or fix damage they’ve caused.

3. Serve an N5 notice

If damage is substantial and tenant won’t address it, serve an N5 Notice.

4. File an L2 application

If the N5 doesn’t resolve it, file with the LTB to evict and/or claim compensation.

5. File a T1 application (after tenancy ends)

File within one year of discovering the damage to claim costs.


Using the N5 for damage

The N5 notice can be used when a tenant has:

  • Wilfully or negligently caused undue damage to the unit
  • Permitted someone else to cause damage
  • Failed to maintain the unit in a reasonable state of cleanliness

First N5 (Can be voided)

  • 20-day notice period
  • Tenant has 7 days to repair the damage or pay for repairs
  • If they fix it, the notice is voided

Second N5 (Cannot be voided)

  • If tenant damages property again within 6 months of first N5
  • 14-day notice period
  • Cannot be voided by repairs

Documenting damage

Good documentation is essential for any damage claim:

1. Move-in inspection

  • Complete a detailed inspection report with the tenant
  • Take dated photos/videos of the unit’s condition
  • Have both parties sign the inspection report

2. When damage occurs

  • Take clear photos immediately
  • Document the date and circumstances
  • Get quotes for repairs
  • Keep all communication records

3. Move-out inspection

  • Compare to move-in condition
  • Document new damage with photos
  • Get professional repair estimates

What you’ll need for an LTB claim

EvidencePurpose
Move-in photosShow condition before damage
Current photosShow the damage
Repair quotes/invoicesProve cost of damage
Communication recordsShow you notified tenant
Inspection reportsDocument condition over time

Generate Your Damage Notice Email

Contact your tenant about property damage before taking formal action.

Template Generator

Property Damage Email Generator

Create a professional email to notify your tenant about property damage.

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Normal wear and tear vs. damage

This can be a grey area. Here’s a general guide:

Normal wear and tear (NOT tenant’s responsibility)

  • Faded or slightly marked walls
  • Worn carpet in high-traffic areas
  • Minor scuffs on floors
  • Dusty blinds
  • Faded curtains from sun
  • Loose door handles from normal use

Tenant damage (tenant IS responsible)

  • Large holes in walls
  • Burns on carpet or counters
  • Broken windows, doors, or appliances
  • Heavy staining from spills
  • Pet damage
  • Mold from tenant’s failure to ventilate
  • Damage from unauthorized modifications

Common mistakes to avoid

No move-in documentation — Always do a thorough inspection with photos

Deducting from rent deposit — This is not permitted under the RTA

Waiting too long — Document and address damage promptly

Vague descriptions — Be specific about what was damaged and when

No repair quotes — Get professional estimates to prove costs



This guide is for educational purposes only. Consult a paralegal or lawyer for advice specific to your situation.

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