Understanding Bill 60: A Game-Changer for Landlords in Ontario's Rental Market

If you are a landlord in Ontario, especially in Toronto, recent changes to the Landlord and Tenant Board (LTB) rules will directly affect how you handle unpaid rent cases. For years, landlords have faced long delays and frustrating tactics that slowed down eviction processes. Tenants could raise last-minute claims about maintenance or safety issues, often delaying hearings for months. This week, Bill 60, known as The Fighting Delays, Building Faster Act, introduced new rules that aim to stop these delays and protect landlords’ investments. This post explains what Bill 60 means for landlords and how it changes the way unpaid rent hearings work.

New hearing room setup at Ontario's Landlord and Tenant Board

What Bill 60 Changes About Unpaid Rent Hearings

Before Bill 60, tenants could raise any counterclaims during an eviction hearing without prior notice or financial commitment. These claims often involved maintenance or safety issues and were used to delay eviction for months. This created a backlog at the LTB and made it difficult for landlords to regain possession of their properties or collect owed rent.

Bill 60 introduces a new rule: if a tenant wants to raise counterclaims during an arrears hearing, they must pay 50% of the claimed rent arrears upfront to the tribunal. This payment acts as a deposit or escrow, showing that the tenant’s claims are serious and not just a tactic to delay eviction.

How This Affects Landlords

• Faster hearings: With fewer frivolous claims, hearings will proceed more quickly.

• Reduced delays: Tenants must commit financially before raising counterclaims, discouraging bad-faith tactics.

• Clearer process: Landlords can expect more straightforward hearings focused on the actual rent owed.

• Better protection of investments: Landlords can recover unpaid rent more efficiently and reduce losses.

  
  

Why the Province Made This Change

The Ministry of Municipal Affairs and Housing stated that Bill 60 aims to restore confidence in Ontario’s rental housing market. The previous system, while designed to protect tenants from neglectful landlords, was often exploited by tenants who used maintenance claims as a way to avoid paying rent for extended periods.

By requiring tenants to put down money before raising counterclaims, the government hopes to:

• Weed out frivolous or bad-faith claims.

• Ensure that genuine tenant issues are backed by financial commitment.

• Speed up the eviction process for landlords dealing with unpaid rent.

• Maintain a fair balance between tenant protections and landlord rights.

  
  

What Landlords Should Know About the New Process

Filing an L1 Application

When a tenant stops paying rent, landlords file an L1 application with the LTB to start the eviction process. Under Bill 60, if the tenant wants to dispute the rent arrears by raising counterclaims, they must pay half of the claimed arrears upfront.

Tenant Counterclaims

Counterclaims can include issues like:

• Maintenance problems

• Safety concerns

• Other breaches of the tenancy agreement

  
  

Before Bill 60, tenants could raise these claims without any upfront cost, often delaying hearings for months. Now, tenants must show financial commitment to their claims, which discourages baseless or delaying tactics.

Hearing Timeline

The new rules aim to reduce the backlog at the LTB. Hearings should be scheduled and completed faster because:

• Fewer delay tactics will be used.

• The tribunal can focus on cases with genuine disputes.

• Landlords can regain possession or recover rent more quickly.

  
  

Practical Example: How Bill 60 Works in Real Life

Imagine a landlord in Toronto whose tenant has stopped paying rent for three months, owing $3,000. The landlord files an L1 application to evict the tenant and recover the arrears.

Under the new rules:

• The tenant wants to claim that the landlord failed to fix a broken heater.

• To raise this counterclaim, the tenant must pay $1,500 (50% of $3,000) upfront to the LTB.

• If the tenant refuses or cannot pay, the tribunal will not hear the counterclaim, and the eviction process moves forward.

• This prevents the tenant from delaying the hearing by raising last-minute issues without financial risk.

  
  

This example shows how Bill 60 protects landlords from lengthy delays and encourages tenants to raise only serious claims.

What Landlords Can Do to Prepare

• Stay informed about the new rules and how they affect eviction hearings.

• Document all communications with tenants, especially about rent payments and maintenance requests.

• Keep records of rent arrears and any repairs or maintenance done.

• Consult legal advice if unsure about the new process or how to file applications under Bill 60.

• Communicate clearly with tenants about their obligations and the consequences of unpaid rent.

  
  

What Tenants Should Understand

While Bill 60 protects landlords, tenants still have rights to raise legitimate concerns about their rental units. However, tenants must now:

• Provide a deposit of 50% of the rent arrears before counterclaims are heard.

• Understand that frivolous claims may not be accepted without this financial commitment.

• Seek legal advice if unsure about their rights or the new process.

  
  

Impact on Ontario’s Rental Market

Bill 60 is expected to:

• Reduce the backlog at the LTB.

• Speed up eviction and rent recovery processes.

• Encourage fairer hearings focused on genuine disputes.

• Improve confidence among landlords to invest in rental properties.

• Maintain tenant protections while discouraging misuse of the system.

  
  

This change could lead to a more balanced rental market where landlords can protect their investments and tenants can raise valid concerns without abuse of the process.

Landlords in Ontario now have a clearer path to address unpaid rent and regain control of their properties thanks to Bill 60. By requiring tenants to put money down before raising counterclaims, the province is cutting down on delays and making the LTB process more efficient. If you manage rental properties, understanding these changes will help you navigate the new rules confidently and protect your investment.

Let Turnkey Management Shield Your Rental Income

The new Bill 60 updates are proof that the Toronto rental market is becoming highly institutionalized. Navigating the LTB is no longer a hobby—it is a legal procedure that requires precise, expert management.

At Turnkey Rental Management, we specialize in bulletproof landlording. For a flat fee of just $99/month, we provide:

• Flawless Bookkeeping: Automated rent tracking and crystal-clear digital ledgers that stand up in court.

• Legal Compliance: Swift, accurate handling of N4 notices and LTB application filings the moment rent is late.

• Proactive Maintenance: Round-the-clock repair tracking so your tenant never has a legitimate maintenance claim to leverage against you.

  
  

Don't let a bad tenant exploit the system, and don't let a paperwork error cost you a year's worth of income.

Contact Turnkey Rental Management today to secure full-service, hands-off property protection for only $99/month.