General Rules in Ontario
In Ontario, landlord–tenant relationships are governed by the Residential Tenancies Act (RTA). Both landlords and tenants must follow strict procedures when ending a lease.
But in practice, situations often arise where:
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Tenants want to move out before the end of their lease; or
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Landlords need to take back the property.
So, what happens in these cases? What compensation is required? Which forms must be used? And how should disputes be handled?
1. Does the landlord owe compensation if the tenant breaks the lease early?
Generally, tenants are expected to honor their lease, whether it is a fixed-term (e.g., one-year lease) or a month-to-month tenancy.
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Tenant ends lease early: A tenant may ask to break the lease, but unless the landlord agrees or there are legal grounds (e.g., landlord breach), the tenant may remain responsible for rent until the end of the lease or until a new tenant is found.
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Landlord’s compensation: Normally, landlords do not owe compensation if the tenant leaves early. Instead, if the tenant walks away, the landlord may claim losses (e.g., unpaid rent).
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Solution: The tenant can use Form N11 – Agreement to End Tenancy, signed by both parties, to avoid future disputes.
2. Common LTB Forms
Here are some of the most common forms related to ending a tenancy in Ontario:
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N9 – Tenant’s Notice to End Tenancy
For tenants who want to end their lease. Requires 60 days’ written notice, aligned with the end of the rental period. -
N11 – Agreement to End Tenancy
Used when both landlord and tenant agree to end the lease early. No notice period required—only mutual agreement. -
N12 – Landlord’s Own Use or Purchaser’s Own Use
Used when the landlord, immediate family, or a purchaser requires the unit for personal use. Requires 60 days’ notice and one month’s rent compensation to the tenant.
3. Reporting Issues to the Landlord and Tenant Board (LTB)
If one party believes the other has breached the agreement:
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Tenant leaves early and owes rent → Landlord may file L9 – Application to Collect Rent Owed.
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Landlord fails to follow proper notice procedure → Tenant may file T2 – Application About Tenant Rights.
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Harassment or illegal eviction → Tenant may also file T2.
The LTB will hold a hearing, and its decisions are legally binding.
4. Shared Kitchen or Bathroom Exception
The RTA does not apply when the tenant shares a kitchen or bathroom with the landlord (e.g., basement rentals where facilities are shared).
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In such cases, tenants do not have full RTA protections.
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Landlords do not need to use N9/N11/N12/N15.
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Instead, the tenancy follows the terms of the private agreement between landlord and tenant.
That’s why it’s strongly recommended that landlords include clear exit terms in the rental agreement for shared accommodations.
5. Key Takeaways
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Landlords do not owe compensation when tenants leave early, unless required under N12 or N13.
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The right form must be used to properly end a tenancy.
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The LTB provides a legal path for dispute resolution.
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Shared accommodation cases fall outside RTA rules—agreements must be contract-driven.
Overview of The Forms
| Form | Who Uses It | Reason | Notice Period | Compensation? |
|---|---|---|---|---|
| N9 | Tenant | To end tenancy voluntarily | 60 days | No |
| N11 | Both | Mutual agreement to end tenancy | Anytime | No |
| N15 | Tenant | Because of Fear of Sexual or Domestic Violence and Abuse | At least 28 days after the tenant gives this notice | Taken to the court |
| N4 | Landlord | Non-payment of rent | 14 days (monthly) / 7 days (weekly) | No |
| N5 | Landlord | Damage, disturbance, or overcrowding | 20 days | No |
| N6 | Landlord | Illegal act or income misrepresentation | 10–20 days | No |
| N7 | Landlord | Serious problems caused by tenant | 10 days | No |
| N8 | Landlord | Persistent late payment | 60 days (monthly) / 28 days (weekly) | No |
| N12 | Landlord | Landlord/purchaser/family requires unit | 60 days | Yes – 1 month rent |
| N13 | Landlord | Demolition, repair, or conversion | 120 days | Yes – 1 month rent or alternative |
| N14 | Landlord | Illegal acts by tenant/guests | 10 days | No |
| N15 | Tenant | Because of Fear of Sexual or Domestic Violence and Abuse | At least 28 days after the tenant gives this notice | Taken to the court |
The Fisher Group’s Practical Solutions for Landlords
At The Fisher Group, we know that tenants breaking a lease early can create stress and financial risk for landlords. Here are three proven strategies we recommend and help our clients implement:
1. Sublet with Landlord Approval
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A tenant may sublet, but only with the landlord’s written consent.
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The original tenant remains responsible for rent, damages, and obligations under the lease.
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We help landlords screen new tenants to avoid unnecessary risk.
2. Re-list the Property Quickly
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Landlord and tenant may agree to re-list the unit with an agent immediately.
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The tenant remains responsible for rent, utilities, and insurance until a new tenant moves in.
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In practice, tenants are also responsible for the agent’s commission.
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Our team markets the property aggressively to minimize vacancy time.
3. Enforce Lease Terms (Schedule A)
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When representing landlords, we include special early termination clauses in Schedule A:
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Tenant must give 60 days’ written notice.
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Tenant must pay two months’ rent as compensation.
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This proactive approach protects landlords and reduces the likelihood of disputes.
Final Word
Whether you are a landlord or tenant, understanding the proper procedures, notice forms, and compensation rules is essential.
At The Fisher Group, we specialize in guiding you through every step—from drafting protective lease clauses to handling early terminations and re-leasing strategies.
📞 Need help making your move in today’s market?
Contact The Fisher Group – Your Real Estate Experts in Oakville and the GTA
Fisher Yu
📱 647.598.8488
📧 [email protected]
🌐 thefishergroup.ca
