Ontario Landlords: Personal Use Eviction New Rules Take Effect September 21, 2026 — What You Need to Know

Bill 60 Is Finally Here — Well, Almost. Part II

On November 27, 2025, Bill 60, Fighting Delays, Building Faster Act, 2025[1] (“Bill 60”) received the Royal Assent. Among other Acts, Bill 60, under its Schedule 12, sought to amend the Residential Tenancies Act, 2006[2] (“RTA”) on various issues. However, none of those amendments came into force in 2025. In fact, the province never announced a start date for the listed changes. The proposed changes never became law. Landlords waited without a clear timeline. Until now.

In addition to July 1, 2026, on September 21, 2026 some, but not all, of the Bill 60 changes will come into force and change the RTA. In this article, the landlord’s legal team at Gobin & Leyenson LLP identifies one of the changes that will become law on September 21, 2026, and explains how it affects residential landlords in Ontario. Follow us on social media to learn more and empower yourself as a residential landlord to make informed decisions about your rental investment property. Read our other articles HERE.

Currently

Landlords in Ontario may terminate the tenancy, when the landlord wants to use the rental unit for their own purpose.[2] The landlord can also serve a personal use eviction if a specific family member wants to move into the unit. However, only a handful of family members qualify:

1. Landlord’s spouse;
2. Landlord’s child or parent;
3. Landlords’ spouse’s child or parent; or
4. A person who provides or will provide care services to the landlord, the landlord’s spouse, or their children or parents. This applies only if the care recipient already lives — or will live — in the same residential building, group of buildings, mobile home park, or land lease community as the rental unit.[3]

The eviction notice for landlord’s personal use (N12) must identify the correct termination date to be valid. The termination date must be the last day of the rental period. The tenant is entitled to at least 60 days’ advance notice. For a fixed-term lease (e.g. a one-year lease), the termination date must fall on the last day of that term.[4]

This type of eviction process applies only to rental units that an individual owns, entirely or in part — not a corporation. A corporate landlord cannot use this eviction process unless an individual also owns the rental unit.

*Much has been said about partial ownership by an individual, and to what degree such ownership must exist in order to succeed on this type of eviction, but that discussion is for another article.

Once the landlord delivers the personal use eviction notice, they must pay the tenant monetary compensation equal to one month’s rent. This is not a refund of the last month’s rent deposit — it is a separate payment. If the tenant owes rent arrears, the landlord may deduct the compensation from those arrears, as long as the landlord clearly advises the tenant in writing.[5]

In the alternative, the landlord may offer to the tenant another rental unit, acceptable to the tenant, instead of paying the one month’s compensation amount.

Timing of Compensation

The landlord must pay the one month’s compensation — or make the offer of another rental unit — no later than the termination date listed on the eviction notice.

Some Landlord and Tenant Board (“LTB”) decisions have permitted landlords to pay compensation after the termination date, as long as the tenant has not yet vacated. However, the risk is high. If the landlord does not pay compensation as the RTA requires, the LTB may dismiss the eviction application entirely.

What is Changing?

As of September 21, 2026, landlords have an opportunity to avoid paying one month’s compensation. If a landlord serves a personal use eviction notice, the RTA does not require compensation IF:

1. The N12 eviction notice is served on the tenant after September 21, 2026;
2. The termination date is at least 120-day away (not 60 days) from the date the tenant receives the eviction notice; and
3. The termination date must still fall on the last day of the tenancy period or the last day of the term tenancy.[6]

Impact on the Landlord

Many landlords will welcome the idea of keeping more money in their pockets. But skipping compensation may not actually be an advantage. The 120-day termination date replaces the compensation requirement — and delays the eviction. Just as the LTB is beginning to schedule hearings sooner, a 120-day termination date could push the landlord’s eviction application much further back than a 60-day date would.

If a tenant owes rent arrears and the landlord has little or no chance of recovering them, it may make sense to keep the 60-day termination date. The landlord can then deduct the compensation amount from the arrears, effectively recovering one month’s rent.

If the landlord is in no rush to move in, the 120-day termination date may be the ideal option. It eliminates the compensation requirement entirely.

Landlord legal team at Gobin & Leyenson LLP invites you to follow us on social media, and stay updated on the changes and new cases which impact residential landlords in Ontario. This article provides general information only. It is not legal advice. Contact Gobin & Leyenson LLP for advice specific to your situation.

 [1] S.O. 2025, c. 15 – Bill 60

[2] RTA, s. 48(1)

[3] RTA, s. 48(1)(a)-(d)

[4] RTA, s. 48(2)

[5] Whynot v Hooey, 2022 CanLII 100328 (ON LTB)

[6] RTA, s. 48.1(2)