Rent Arrears and Payment Plans in Ontario

Rent & Deposits Ontario 3 min read · published March 09, 2026 Flag of Ontario

Facing rent arrears can be stressful for tenants in Ontario, but understanding your rights and available options can help. Ontario's Residential Tenancies Act, 2006 governs how landlords and tenants should interact regarding rental payments. In this article, we'll explore whether establishing a payment plan for rent arrears is legal in Ontario and what it means for tenants.

Ontario does not require landlords to offer a payment plan; any plan is voluntary and should be in writing. Prepare a simple written proposal with the total arrears, proposed monthly payments, start date, end date, and consequences for missed payments; keep copies and bring them to discussions.

Understanding Rent Arrears

Rent arrears occur when a tenant fails to pay their rent by the due date. This can happen due to various reasons such as job loss or unexpected financial burdens. In Ontario, rent arrears can lead to eviction if not addressed. Tenants must communicate openly with their landlords to find a solution.

Payment Plans: A Legal Solution?

Payment plans offer a way for tenants to pay overdue rent over time. While not mandated by law, tenants and landlords can mutually agree on a repayment plan. It's crucial for any agreement to be documented in writing to avoid misunderstandings later.

When negotiating a plan, gather supporting documents like a recent pay stub or benefit statement, a calendar of proposed payment dates, and the lease if available. Ask for the agreement in writing with clear amounts and due dates, and note what happens if a payment is missed.
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Action Steps for Tenants

  1. Communicate Early: Reach out to your landlord at the first sign of financial difficulty to discuss potential solutions.
  2. Document Agreements: Ensure any repayment plan is clearly documented, including payment amounts and deadlines.
  3. Seek Legal Advice: Consider consulting with a tenant advocacy group or legal advisor if you're unsure about any agreement terms.

Role of the Landlord and Tenant Board

The Landlord and Tenant Board (LTB) is the tribunal responsible for resolving disputes between landlords and tenants, including those related to rent arrears. If a tenant cannot adhere to a payment plan, landlords may apply to the LTB for an eviction order. However, tenants have the right to present evidence and explain their situation to the Board.

Be mindful of deadlines and notice requirements. If a Board hearing is scheduled or an eviction application is filed, respond promptly and keep all rent records, receipts, and written communications to present at the hearing.

Relevant Legislation

For powerful insights on rental obligations, view Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

For detailed payment protocols, review the Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

Explore rental opportunities on Map-based rental search across Canada.

Tenant Rights in Ontario

Ontario tenants have specific rights and responsibilities as outlined in the Tenant Rights in Ontario page. It's important for tenants to familiarize themselves with these rights to better navigate issues like rent arrears.

Summary

  • Discuss rent arrears with your landlord early to explore possibilities like payment plans.
  • Document any payment plan agreements in writing for clarity and security.
  • Utilize resources from tenant advocacy groups for support.
Common mistake: assuming conversations alone solve arrears. Get any agreement in writing with exact payment amounts, due dates, and consequences for missing payments to protect both sides.

Need Help? Resources for Tenants

LTB dispute resolutions involve timelines that can vary by case. Gather your lease, rent ledgers, proof of payments, and any correspondence when preparing your Board filing or hearing with or without advocacy help.

  1. What happens if I can't pay my rent on time? Contact your landlord immediately to discuss possible solutions like a repayment plan. Document any agreements to ensure both parties are clear on expectations.
  2. Can a landlord evict me for not following a payment plan in Ontario? If you fail to comply with the terms of a payment plan, a landlord might seek an eviction order from the Landlord and Tenant Board. You can present your case and evidence at the Board hearing.
  3. What is a Rent Repayment Agreement? It's an agreement between the tenant and landlord about how overdue rent will be paid within a certain timeframe, helping prevent eviction while ensuring the landlord receives the due rents.

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David Chen
David Chen

Tenant Law Analyst, Tenant Rights Canada

David specializes in Ontario residential tenancy law and Northern territories housing regulations. He has followed developments at the Landlord and Tenant Board closely for over eight years and writes extensively on LTB procedures, rent increases, and maintenance obligations.