How to Collect Unpaid Rent After Tenant Moves Out in Ontario

Small Claims Court

Small Claims Court handles civil claims up to $50,000 as of October 2025. You can use this option in several situations:

• The tenant moved out before September 2021 (making them ineligible for L10)
• You need to enforce an LTB order the tenant has not paid
• You prefer to go directly to court

To file a claim, submit a Plaintiff's Claim (Form 7A) through the appropriate portal. For matters in the Toronto region, use the Ontario Courts Public Portal. For matters outside Toronto, use the Justice Services Online portal.

You will need detailed evidence to support your case, including the lease agreement, rent payment records, and any written communications about the arrears. Winning a judgment does not guarantee payment. If the tenant does not pay, you may need to pursue enforcement through wage garnishment or asset seizure.

Using a Collection Agency

A collection agency can pursue the debt on your behalf without requiring you to go through the courts first.

How it works:

Most collection agencies work on commission, typically taking 30% to 50% of any amount they collect. If they are unsuccessful, you owe nothing. You provide documentation of the debt, including the lease and records of unpaid rent, and the agency handles contact with the former tenant.

Advantages:

• No upfront cost if the agency works on commission
• Professional pursuit of the debt
• No court appearances required

Disadvantages:

• You lose a significant portion of the collected amount
• No guarantee of success
• Less control over the process

Collection agencies are often most effective when the debt is substantial and the tenant has the means to pay but has simply chosen not to.

Reporting to Credit Bureaus

Landlords in Ontario can report unpaid rent directly to credit bureaus such as TransUnion and Equifax. You do not need a court judgment or collection agency to do this.

Requirements:

• The amount reported must be accurate
• You can only report unpaid rent and utilities as outlined in the lease

Impact on the tenant:

• The debt appears on their credit report for up to six years
• It significantly damages their credit score
• This creates a strong incentive for the tenant to pay

Credit reporting is a useful tool because it costs nothing and can motivate payment. However, it does not directly recover the money owed. Some tenants may pay once they realize the impact on their credit, while others may not have the means to pay regardless.

Documentation You Need

Regardless of which method you choose, strong documentation is essential. Gather the following before pursuing collection:

• Signed lease agreement
• Records of rent payments received (showing when payments stopped)
• Bank statements confirming missed payments
• Copies of any N4 notices served
• Written communications with the tenant about arrears
• Photos and inspection reports if claiming for damage
• The tenant's forwarding address if available

The more complete your records, the stronger your case will be at the LTB or in court.

Is It Worth Pursuing?

Before investing time and money in collection, consider whether the effort is likely to pay off.

Questions to ask:

• How much is owed? Small amounts may not justify the time and cost.
• Does the tenant have income or assets? A judgment against someone with nothing to collect is difficult to enforce.
• How strong is your documentation? Weak records make collection harder.
• What is your time worth? Court appearances and paperwork take time.

For smaller debts, credit bureau reporting may be the most practical option. It costs nothing and creates consequences for the tenant. For larger amounts with a reasonable chance of recovery, the L10 application or Small Claims Court may be worthwhile.

In some cases, accepting that the money is unlikely to be recovered and focusing on better tenant screening for the future is the most practical choice.

For official forms and more information, visit Tribunals Ontario or Ontario Small Claims Court.