Dealing with property damage caused by tenants can be frustrating and costly for landlords. While normal wear and tear is expected, excessive damage—such as holes in walls, broken appliances, or significant flooring damage—can lead to financial losses if not handled correctly.

Understanding your legal rights and responsibilities as a landlord in Ontario is crucial when addressing tenant-caused damage. This guide walks you through the proper legal steps to take, from documenting the damage to recovering costs through the Landlord and Tenant Board (LTB) or Small Claims Court.

1. Understanding the Difference: Wear and Tear vs. Property Damage

Before taking legal action, it’s important to distinguish between normal wear and tear and actual property damage.

✅ Normal Wear and Tear (Landlord’s Responsibility):

• Faded paint or minor scuff marks on walls.
• Worn-out carpets due to regular use.
• Loose door handles or cabinet hinges.

🚨 Tenant-Caused Property Damage (Tenant’s Responsibility):

• Large holes in walls or broken windows.
• Stained or burned carpets.
• Broken appliances due to neglect or misuse.
• Excessive pet damage (e.g., scratched floors, chewed-up fixtures).

📌 Why This Matters: Landlords cannot charge tenants for normal wear and tear but can recover costs for excessive damage beyond normal use.

For more on landlord responsibilities, check Ontario’s Residential Tenancies Act.

2. Step 1: Document the Damage

To successfully recover repair costs, you need solid evidence.

📌 How to document damage properly:✅ Take photos/videos – Before and after photos help prove tenant-caused damage.✅ Keep all receipts and invoices – For repairs, replacement items, or professional cleaning services.✅ Get a repair estimate – Have a contractor provide a written repair estimate to show the cost of fixing the damage.✅ Maintain a detailed record – Keep emails, texts, or letters where the tenant acknowledges the damage.

For more details, check How to Gather Evidence for Landlord-Tenant Disputes.

3. Step 2: Notify the Tenant and Request Payment

Before filing a legal claim, you must give the tenant a chance to pay for the damages voluntarily.

📌 How to request payment from the tenant:

• Send a formal written notice detailing the damage and repair costs.
• Attach photos, repair estimates, and receipts as evidence.
• Request payment by a specific date (e.g., within 10–14 days).
• Keep a record of all communication in case you need to escalate the matter.

🚨 If the tenant refuses to pay or ignores the request, proceed to the next step.

For guidance on writing a proper demand letter, check How to Communicate with Tenants Effectively.

4. Step 3: Deduct the Cost from the Security Deposit (If Applicable)

In Ontario, landlords cannot require a security deposit for damage (only for last month’s rent). However, if the damage occurred in another province where security deposits are allowed, you may be able to deduct repair costs from the deposit.

✅ Before deducting from a security deposit:

• Provide an itemized breakdown of deductions.
• Return any remaining deposit amount to the tenant.
• Ensure the deductions comply with local tenancy laws.

🚨 If no security deposit is available, move to Step 4.

For more details, check Ontario’s Rules on Security Deposits.

5. Step 4: File an Application with the Landlord and Tenant Board (LTB)

If the tenant refuses to pay for damages, landlords can file an Application to Recover Costs (Form L2) with the Landlord and Tenant Board (LTB).

📌 How to file a claim for damages:

1. Complete Form L2 – Application to End a Tenancy and Evict a Tenant.
2. Submit supporting photos, invoices, and repair estimates.
3. Pay the filing fee and submit the application online or in person.
4. Attend the hearing and present your case.

🚨 LTB Limitations:

• The LTB handles damage claims only while the tenant still lives in the unit.
• If the tenant has already moved out, you must go to Small Claims Court instead.

For more details, check How to File a Landlord Application at the LTB.

6. Step 5: Sue the Tenant in Small Claims Court

If the tenant has moved out and refuses to pay, landlords must file a claim in Small Claims Court to recover costs.

📌 How to sue a former tenant for property damage:

1. File a Plaintiff’s Claim (Form 7A) – Available here.
2. Pay the filing fee (ranges from $102 to $215 depending on the claim amount).
3. Serve the claim on the tenant within 6 months of discovering the damage.
4. Attend a court hearing and provide evidence.

🚨 Small Claims Court only handles cases up to $35,000. If the damage exceeds this amount, you may need to file in a higher court.

For more details, check How to File a Small Claims Court Case.

7. Preventing Future Tenant Damage

While some tenant damage is unavoidable, landlords can take proactive steps to reduce risks.

✅ Conduct thorough tenant screening – Check references, credit history, and rental history.✅ Use a detailed lease agreement – Clearly outline tenant responsibilities for property care.✅ Perform regular property inspections – Schedule quarterly or bi-annual inspections.✅ Document property condition before move-in – Have tenants sign a move-in condition report.✅ Require tenant insurance – While not mandatory, tenant insurance can help cover accidental damages.

For more tips, check How to Protect Your Rental Property from Damage.

Final Thoughts: Follow the Right Steps to Recover Your Losses

Property damage can be costly, but knowing your rights and taking the correct legal steps ensures you recover what you’re owed. Whether through negotiation, the LTB, or Small Claims Court, landlords have options to hold tenants accountable for serious damage.

📌 Key Takeaways:

• Document all damage with photos, receipts, and estimates.
• Ask the tenant to pay voluntarily before escalating the issue.
• If the tenant refuses, file a claim with the LTB (if they still live there) or Small Claims Court (if they’ve moved out).
• Prevent future damage by carefully screening tenants and using strong lease agreements.

🚀 Need legal help with tenant property damage? Contact Carson Frankum for expert landlord advice.

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