Introduction
Ontario’s new definition of persistent late payment of rent takes effect on September 21, 2026. While the amendments establish, for the first time, a prescribed definition of what constitutes persistent late payment of rent, they also preserve the discretion of the Landlord and Tenant Board (the “Board”) to find persistent late payment in circumstances not specifically identified by the regulation. Understanding these changes may assist Ontario residential landlords when determining whether an N8 Notice remains an available remedy. ¹
Definition of Persistent Late Payment of Rent in Ontario: Learn how the new legislative definition may affect N8 Notices and eviction applications for Ontario residential landlords.
We previously wrote about the changes that came into force on July 1, 2026, and those coming into force on September 21, 2026, under the Residential Tenancies Act, 2006 (the “Act”) as a result of Bill 97 and Bill 60, which can be viewed in our BLOG. The regulations implementing these legislative changes have now been released. This article focuses on the new definition of persistent late payment of rent as it exists at the time of writing. ² ³
Why This Change Matters
Currently, the Act permits a landlord to commence an eviction proceeding against a tenant who persistently fails to pay rent on time, commonly referred to as an N8 eviction. ⁴ Historically, applications seeking eviction based on an N8 Notice often resulted in a pay-on-time order rather than an eviction order. A pay-on-time order typically requires the tenant to pay future rent in full and on time while also complying with a repayment plan for outstanding rent arrears.
Neither the Act nor the regulations previously defined what constituted ‘late’ or ‘persistent’ payment. Instead, the Board considered the duration of the tenancy, the number of late payments, the period over which they occurred, and the tenant’s individual circumstances.
The New Definition
Effective September 21, 2026, Bill 60 adds section 58.1 to the Act, directing that persistent late payment be determined in accordance with the regulations. ⁵ Ontario Regulation 516/06 introduces section 8.1, providing that rent is ‘late’ only if unpaid beyond the seven days after it becomes due, and becomes ‘persistent’ where late payment occurs at least three times within six consecutive months. ⁶
Interpreting the New Definition
At first glance, some may interpret the regulation as exhaustive. However, section 8.1(2) expressly provides that persistent late payment may arise in circumstances not specified in the regulation and that the prescribed circumstances do not limit what may constitute persistent late payment. ⁷
In our view, section 8.1 establishes mandatory criteria requiring the Board to find persistent late payment where the prescribed definition is satisfied, while preserving the Board’s discretion to find persistent late payment in other circumstances.
Practical Implications
The practical result may be somewhat counterintuitive. Under previous Board decisions, tenants who routinely paid a few days late could still face an N8 based eviction. Under the new regulation, those same payment patterns may no longer satisfy the prescribed definition if each payment is made within seven days of the due date.
This analysis reflects our interpretation of the legislation as it exists at the time of writing. Future Board or court decisions may adopt a different interpretation.
Calculating the Seven-Day Period
Landlords are reminded of the Board’s procedural rules, in relation to computation of time. The word “holiday” is defined as any Saturday, Sunday, or any other day on which the Board is closed. The rules further stipulate when something must be done within a specific number of days, the days are counted by excluding the first day and include the last day. Furthermore, if the deadline for doing anything ends on a holiday, the deadline moves to the next day that is not a holiday. While an eviction notice or a document may be delivered to the tenant on a holiday, and the notice may take effect on a holiday, the late payment definition will be subject to the time computation rules.
What Does This Mean for Residential Landlords?
Obtaining an eviction based on persistent late payment may become more challenging. Landlords should maintain accurate rent ledgers, carefully document payment allocation, and review payment histories before deciding whether an N8 Notice remains an appropriate remedy.
Conclusion
The new definition provides greater certainty but may narrow the situations in which landlords can rely upon an N8 Notice. Until appellate guidance becomes available, landlords should approach persistent late payment cases with caution and carefully analyze both the prescribed criteria and any additional circumstances that may support an application.
Disclaimer
This article is provided for general educational and informational purposes only and does not constitute legal advice. Every residential tenancy matter is unique. Readers should not rely upon this article as a substitute for obtaining legal advice regarding their specific circumstances. If you require advice regarding persistent late payment of rent, an N8 Notice, or any other residential tenancy matter in Ontario, contact Gobin & Leyenson LLP.
Footnotes
- Residential Tenancies Act, 2006, SO 2006, c 17, ss. 58, 58.1.
- Protect Ontario by Building Faster and Smarter Act, 2025 (Bill 97).
- Fighting Delays, Building Faster Act, 2025 (Bill 60).
- Residential Tenancies Act, 2006, s. 58.
- Fighting Delays, Building Faster Act, 2025, s. 11.
- Ontario Regulation 516/06, s. 8.1(1).
- Ontario Regulation 516/06, s. 8.1(2).