In This Article:
- Ontario's 2026 Rent Increase Guideline
- Bill 60: What It Actually Does (Beyond the Headlines)
- Bill 97 vs. Bill 60: Why the Distinction Matters
- Eviction Process Updates and LTB Backlogs
- Renovictions, the N13, and What Landlords Must Prove
- Notice Period Reference Table (Updated for September 21, 2026)
- What This Means for Central Ontario Landlords
- Frequently Asked Questions
- Final Thoughts
When this article was first published in early 2025, Bill 60 had just passed and most landlords were still trying to understand what it meant in practice. A lot has changed since then. The most significant update heading into the fall of 2026 is one that many landlords have not fully absorbed: effective September 21, 2026, the N4 notice period for non-payment of rent drops from 14 days to 7 days for every residential tenancy in Ontario. That change alone rewrites how landlords should think about their rent collection timelines, and it comes from Bill 60, the Fighting Delays, Building Faster Act, 2025, not from Bill 97 as some sources have incorrectly reported.
At Blue Anchor, we manage long-term residential rentals across Central Ontario, including properties in Belleville, Trenton, Cobourg, Oshawa, Port Hope, and Picton. We field questions about these legislative changes constantly, and the confusion between Bill 60 and Bill 97 is one of the most common sources of misinformation we encounter. This updated article corrects the record, integrates the September 21, 2026 in-force provisions, and gives you a complete picture of where Ontario landlord-tenant law stands right now.
This article is for general informational purposes and does not constitute legal advice. For matters involving the Landlord and Tenant Board (LTB) or specific tenancy disputes, we recommend consulting a paralegal or lawyer licensed in Ontario.
Ontario's 2026 Rent Increase Guideline
The 2026 rent increase guideline is set at 2.1%. This is down from 2.5% in 2025, reflecting easing inflation figures, though it offers little comfort to landlords who have watched insurance premiums, property taxes, and maintenance costs climb faster than that cap allows. For most private residential units covered under the Residential Tenancies Act (RTA), this is the maximum a landlord can raise rent without seeking approval from the LTB through an above-guideline increase (AGI) application.
The mechanics of a lawful rent increase remain unchanged. You must give at least 90 days written notice before the increase takes effect, increases can only happen once every 12 months per tenancy, and the notice must be delivered on the correct form. Form N1 is used for a standard guideline increase. Getting the paperwork wrong is one of the most common and easily avoidable errors we see from self-managing landlords, and it can void an otherwise valid increase entirely.
One carve-out that continues to generate confusion: units first occupied for residential purposes after November 15, 2018, are generally exempt from rent increase guidelines. Landlords of newer builds may set rent at market rate between tenancies and are not bound by the annual cap during a vacancy. However, once a new tenancy begins, the cap applies to increases within that tenancy. If you are unsure whether your unit qualifies for the exemption, that is a question worth putting to a licensed paralegal before you issue any notice.
For a broader look at how the 2026 rental market is shaping up across Ontario, our May 2026 Rental Market Report covers vacancy trends, asking rent movements, and what landlords in Central Ontario are actually experiencing on the ground.
Bill 60: What It Actually Does (Beyond the Headlines)
Bill 60, the Fighting Delays, Building Faster Act, 2025, was widely reported as a package of LTB efficiency measures, written hearing expansions, and backlog reduction tools. That description is accurate as far as it goes, but it significantly undersells what Schedule 12 of the Act actually does to the RTA. Here is what Bill 60 Schedule 12 carries, with the September 21, 2026 in-force date applying to each provision:
1. N4 Notice Period Shortened from 14 Days to 7 Days
This is the change with the most immediate operational impact. Under the amended subsection 59(1) of the RTA, a landlord serving an N4 for non-payment of rent is now required to give the tenant only 7 days to pay the arrears or vacate, down from the previous 14-day period. This applies to every residential tenancy regardless of whether rent is paid monthly, weekly, or on any other cycle. The old 14-day figure that appeared in earlier versions of this article and in countless landlord guides across the province is now out of date. If you are self-managing and you have a notice period checklist or template that references 14 days on the N4, update it before September 21, 2026.
After the 7-day period expires without payment, the landlord may file an L1 application with the LTB to terminate the tenancy and collect the arrears. The L1 process itself has not changed, but the front-end timeline is now meaningfully shorter.
2. Written Test for Persistent Late Payment Under Section 8.1 of O. Reg. 516/06
For the first time, there is now a written evidentiary test behind an N8 application for persistent late payment. Section 8.1 of Ontario Regulation 516/06, as amended by Bill 60, requires that before an N8 can succeed at the LTB, the landlord must satisfy a written standard demonstrating a pattern of chronic lateness. The N8 itself remains a 60-day, period-end instrument under subsection 58(2) and section 44 of the RTA, which is why it moves more slowly than the N4 route. The N8 is aimed at the pattern of chronic lateness rather than the balance owed, and the new written test formalizes what adjudicators were already doing informally in many hearings. Landlords pursuing an N8 should document every late payment with dates, amounts, and any communications sent to the tenant.
3. Half-of-Arrears Precondition for Tenant Issues at Arrears Hearings
Bill 60 also introduces a precondition for tenants who want to raise their own issues at an LTB hearing that was initiated by the landlord for arrears. Under the new framework, a tenant must have paid at least half of the outstanding arrears before they can bring their own maintenance or other claims into the same hearing. This does not eliminate tenant rights, but it does change the procedural dynamics at the LTB in ways that landlords and their representatives need to understand before walking into a hearing.
4. N12 Own-Use Option: 120 Days Notice, No Compensation Required
Bill 60 Schedule 12 also introduces a new pathway for own-use evictions under the N12. Under this option, a landlord can serve 120 days notice for own-use purposes without being required to pay the tenant one month's compensation. This is a meaningful change from the previous standard, which required compensation equal to one month's rent. The 120-day notice period is longer than the previous 60-day minimum, but the elimination of the compensation requirement makes this a potentially attractive option depending on the circumstances. Note that the bad faith presumption provisions on own-use notices, discussed below, come from a different statute entirely.
For a deeper breakdown of how Bill 60 interacts with the LTB hearing process, see our dedicated post: Ontario's Bill 60: Cutting Through the Noise.
Bill 97 vs. Bill 60: Why the Distinction Matters
This is where a lot of landlord resources, including some published by otherwise reliable sources, have gotten things wrong. Bill 97, the Helping Homebuyers, Protecting Tenants Act, 2023, and Bill 60, the Fighting Delays, Building Faster Act, 2025, are two separate statutes. They share the same September 21, 2026 in-force date for many of their RTA provisions, which is likely the source of the confusion, but they carry entirely different reforms.
Bill 97 is the statute that carries the renoviction framework changes, the strengthened right of first refusal for displaced tenants, and the bad faith presumption on own-use notices. If a landlord serves an N12 for own-use and the unit is subsequently rented to someone else within a defined period, Bill 97 creates a presumption of bad faith that the landlord must rebut. That is a Bill 97 provision, not a Bill 60 provision.
The N4 shortening from 14 days to 7 days is a Bill 60 provision, full stop. Never attribute it to Bill 97. If you are reading a guide or consulting a resource that attributes the N4 change to Bill 97, treat that source with caution, because the misattribution suggests a lack of familiarity with the actual legislative text.
Eviction Process Updates and LTB Backlogs
The LTB backlog has been a persistent problem for Ontario landlords for several years, and Bill 60's written hearing provisions are designed in part to move more cases through the system without requiring in-person attendance. Whether that translates into meaningfully faster outcomes for landlords filing L1 applications remains to be seen, but the directional intent of the legislation is clear.
What has not changed is the importance of getting your paperwork right before you file. An L1 application filed on an improperly served N4, or an N4 that references the wrong amount or the wrong notice period, can result in delays or dismissal at the hearing stage. With the N4 period now at 7 days from September 21, 2026, landlords need to be precise about the date the notice was served and the date the 7-day period expires before filing the L1.
For data on how LTB outcomes have played out across Central Ontario postal codes, our LTB Unpaid Rent Hotspots analysis breaks down where arrears orders are concentrated and what that means for landlords in specific markets.
Renovictions, the N13, and What Landlords Must Prove
The N13 is the form used when a landlord wants to terminate a tenancy because the unit requires extensive renovations or repairs that require vacant possession, or because the landlord intends to demolish the unit or convert it to a non-residential use. Bill 97 tightened the evidentiary requirements around N13 applications, and the bad faith presumption provisions mean that landlords who serve an N13 and then fail to carry out the stated work face real legal exposure.
To succeed on an N13 for renovations, a landlord generally needs to demonstrate that the work is so extensive that it requires a building permit and that the unit must be vacant to complete it. A cosmetic renovation or a repair that could be done with the tenant in place will not meet that standard. The LTB has become more skeptical of N13 applications that appear to be motivated by a desire to reset rent rather than a genuine need for vacant possession, and the bad faith provisions in Bill 97 give adjudicators more tools to act on that skepticism.
Tenants displaced by an N13 also retain a right of first refusal to return to the unit at the same rent once the work is complete, subject to the conditions set out in the RTA. Landlords who fail to honour that right of first refusal face potential liability under the amended provisions.
Notice Period Reference Table (Updated for September 21, 2026)
The following table reflects the notice periods that apply to the most commonly used LTB forms, updated to reflect the Bill 60 changes taking effect September 21, 2026.
| Form | Purpose | Notice Period | Notes |
|---|---|---|---|
| N4 | Non-payment of rent | 7 days (from Sept. 21, 2026) | Previously 14 days. Change comes from Bill 60, Schedule 12, amending RTA s. 59(1). Applies to all tenancy types. |
| N8 | Persistent late payment of rent | 60 days, end of period | Subsection 58(2) and section 44 of the RTA. From Sept. 21, 2026, a written evidentiary test under s. 8.1 of O. Reg. 516/06 applies. Document every late payment with dates and amounts. |
| N12 | Own use (landlord, family member, purchaser) | 60 days minimum (standard path); 120 days (new no-compensation path under Bill 60) | Bad faith presumption provisions come from Bill 97, not Bill 60. |
| N13 | Demolition, conversion, or extensive renovation | 120 days | Vacant possession must be genuinely required. Right of first refusal applies under Bill 97 provisions. |
| N5 | Interference with reasonable enjoyment or damage | 20 days (first notice); void if corrected within 7 days | Second N5 within 6 months is non-voidable. |
What This Means for Central Ontario Landlords
The legislative changes described above affect landlords across Ontario equally, but the practical impact varies depending on your market. In Belleville, Trenton, and Quinte West, where Blue Anchor manages a significant portion of our portfolio, the rental market has been tightening and vacancy rates remain relatively low compared to larger urban centres. That context matters when you are thinking about rent increases, because a 2.1% guideline increase in a market where demand is strong and supply is constrained still leaves room for landlords to maintain competitive rents without pushing tenants out.
In Oshawa and Cobourg, where we also manage properties, the dynamics are somewhat different. Oshawa in particular has seen more volatility in asking rents over the past 18 months, and landlords there need to be thoughtful about how they approach rent increases and lease renewals. Locking in a good long-term tenant at a modest increase is often a better outcome than pushing for the maximum and triggering a vacancy.
The N4 shortening is good news for landlords in all of these markets, because it compresses the front-end timeline on arrears situations. But it does not change the importance of tenant screening. A 7-day N4 is still a form you would rather never have to serve. At Blue Anchor, our approach to tenant screening is designed to reduce the probability of arrears situations arising in the first place, because the best protection against a difficult eviction is not having to start one.
We also encourage all of our tenants to participate in our renters insurance program, which provides $1 million in liability coverage and $100,000 in pet liability coverage for approximately $30 to $42 per month. Protecting tenants from liability exposure protects landlords too. You can read more about how we built that program and why in our post on our renters insurance program.
Frequently Asked Questions
Does the 7-day N4 notice period apply to my existing tenancies, or only new ones signed after September 21, 2026?
The 7-day notice period under the amended subsection 59(1) of the RTA applies to all residential tenancies in Ontario from September 21, 2026 forward, regardless of when the tenancy began. It is not limited to new leases. If you serve an N4 on or after that date, the notice period is 7 days.
My tenant is consistently paying rent 5 to 10 days late but never misses a payment entirely. What form applies?
Chronic lateness without a running balance is an N8 situation, not an N4 situation. The N8 addresses the pattern of persistent late payment under section 58 of the RTA. From September 21, 2026, you will need to satisfy the written evidentiary test under section 8.1 of O. Reg. 516/06 to succeed on an N8 application. Keep detailed records of every late payment, including the date rent was due, the date it was received, and any communications you sent to the tenant about the lateness.
Can I use the new 120-day N12 path to avoid paying one month's compensation?
The 120-day own-use path introduced by Bill 60 does eliminate the compensation requirement that applies under the standard 60-day N12 path. However, the bad faith presumption provisions introduced by Bill 97 still apply. If you serve an N12 and the unit is subsequently rented to someone other than the person named in the notice within the relevant period, you face a presumption of bad faith. The 120-day path is a legitimate option in genuine own-use situations, but it is not a workaround for landlords who simply want to reset rent.
What is the 2026 rent increase guideline and when can I apply it?
The 2026 guideline is 2.1%. You can apply it to any eligible tenancy that has not received a rent increase in the preceding 12 months, provided you give at least 90 days written notice on Form N1 before the increase takes effect. Units first occupied after November 15, 2018, are generally exempt from the guideline cap, but the exemption applies to the vacancy reset, not to increases within an ongoing tenancy.
Is Bill 60 already in force, or does it take effect on September 21, 2026?
Bill 60 received Royal Assent in 2025, but the RTA amendments in Schedule 12, including the N4 shortening and the written test for N8 applications, come into force on September 21, 2026. Some other provisions of Bill 60 that do not amend the RTA may have different in-force dates. For a detailed breakdown of what is already in effect versus what is coming, see our post on Ontario eviction rule changes in 2026.
Final Thoughts
The September 21, 2026 in-force date for Bill 60's Schedule 12 provisions is the most operationally significant date on the calendar for Ontario landlords right now. The N4 shortening to 7 days, the new written test behind the N8, the half-of-arrears precondition at arrears hearings, and the 120-day no-compensation N12 path all take effect on the same day. Landlords who are still operating on the old 14-day N4 assumption after that date will be leaving time on the table in arrears situations.
At Blue Anchor, we update our internal processes, our property management platform, and our owner communications well ahead of legislative changes like these, so the landlords we work with do not have to track every amendment themselves. If you are self-managing and finding the compliance burden increasingly difficult to stay on top of, that is a common reason landlords reach out to us. You can see what our owners actually think about working with a property manager in our post on what 500 landlords really think about property managers.
If you manage properties in Belleville, Trenton, Cobourg, Oshawa, or Picton and want to talk through how these changes affect your specific portfolio, we are happy to have that conversation. Reach out through our website or explore our local management pages for Belleville, Trenton, and Cobourg to learn more about how we work.
This article is for general informational purposes only and does not constitute legal advice. Consult a paralegal or lawyer licensed in Ontario for advice specific to your situation.
