Bill 60: A Practical Guide for Ontario Rental Property Owners

If you own rental property in Ontario, you've probably heard whispers about Bill 60. Maybe you're wondering what it actually means for you and your day-to-day operations. Well, here's the deal: Bill 60 (officially called the Fighting Delays, Building Faster Act, 2025) is shaking up how rental housing works in Ontario, and as a property owner, there are some important changes you need to know about.

The good news? Most of these changes are designed to make your life easier by speeding up processes that have been painfully slow. The not-so-good news? You'll need to adjust how you handle certain situations. Let's break it all down in plain English.

The Big Picture: What Bill 60 Is Really About

Bill 60 is the government's attempt to fix the massive backlog at the Landlord and Tenant Board (LTB) and make the rental system work better for everyone. Right now, LTB hearings take an average of 8 to 9 weeks, which means you're often stuck waiting months to resolve issues with problem tenants.

The bill introduces several changes that should speed things up and give you more control over your rental properties. Think of it as a tune-up for the whole system – not a complete overhaul, but some significant adjustments that should make things run smoother.

The Seven-Day Game Changer

Here's probably the biggest change you'll notice right away: when a tenant doesn't pay rent, you can now serve them with an N4 notice that gives them just 7 days to pay up instead of the previous 14 days.

This means you can file your L1 application with the LTB a full week earlier than before. It might not sound like much, but when you're dealing with non-paying tenants, every day matters for your cash flow.

The process still works the same way – tenants can still pay at any time during those 7 days, and they can still request payment plans. All their legal protections remain in place. The only thing that's changed is the timeline, which puts you in a better position to move things along faster.

The 50% Rule: No More Last-Minute Excuses

One of the most practical changes in Bill 60 is what people are calling the "50% rule." Here's how it works: if a tenant owes you rent and suddenly claims there are maintenance issues, unsafe conditions, or needed repairs during the eviction process, they need to put their money where their mouth is.

Specifically, they have to pay at least 50% of the rent they owe before they can raise these new issues at the hearing. This prevents tenants from suddenly "discovering" problems with the property just to delay eviction when they're months behind on rent.

If tenants genuinely have legitimate concerns about the property, they can still raise them – they just need to show they're acting in good faith by paying half of what they owe first.

Faster Appeals and Decisions

The appeal period for LTB decisions is getting cut in half – from 30 days down to 15 days. This might seem small, but it adds up to faster resolutions overall. Instead of waiting a month to see if a tenant will appeal, you'll know within two weeks.

The bill also promises to better define what "persistent" means when it comes to repeat applications and decision reviews. This should create more consistency in how the LTB handles cases, which is good news for everyone involved.

The Four-Month Notice Option for Personal Use

This one's interesting and could be a game-changer if you're thinking about renting out part of your own home or if you might need your rental property back for personal use down the road.

Under the current rules, if you want to evict a tenant so you or a family member can move in (using an N12 notice), you have to pay the tenant one month's rent as compensation. Bill 60 changes this: if you give 120 days (four months) notice instead of the usual 60 days, you don't have to pay any compensation.

This only applies to new leases though – existing tenants are grandfathered under the old rules. But for new rental agreements, this could make it more attractive to rent out your basement apartment or invest in rental property without worrying about losing permanent control.

Fixed-Term Leases Actually End Now

Here's another change that gives you more control: fixed-term leases won't automatically become month-to-month tenancies anymore. When your lease says it ends on a specific date, it actually ends.

This gives you more predictability and control over your rental arrangements. You'll know exactly when tenancies end, and you can plan accordingly whether you want to renew, find new tenants, or use the property for something else.

What This Means for Your Day-to-Day Operations

So how do these changes actually affect how you run your rental business? Here are the practical implications:

Rent Collection Gets Faster: With the 7-day N4 notice, you can move more quickly on non-payment issues. This should improve your cash flow and reduce the time you're carrying tenants who aren't paying.

Less Gaming of the System: The 50% rule should cut down on tenants who suddenly develop property concerns only when they're facing eviction for non-payment. Legitimate maintenance issues can still be addressed, but tenants can't use them as delay tactics without showing some good faith.

Quicker Resolution Overall: Shorter appeal periods mean less uncertainty and faster final decisions. You'll spend less time in limbo wondering what's going to happen.

More Flexibility for Personal Use: The option to give four months' notice without compensation makes it easier to plan for your own future needs while still being a rental property owner today.

Action Steps You Should Take Now

Don't wait until these changes are fully implemented to start preparing. Here's what you should do:

Review Your Current Processes: Make sure you understand the new timelines and requirements. Update any templates or procedures you use for notices and applications.

Check Your Existing Leases: Understand which tenants fall under the old rules (grandfathered) and which will be subject to new provisions. This is especially important for the compensation requirements on N12 notices.

Document Everything: With faster timelines, good record-keeping becomes even more important. Make sure you're documenting all communications with tenants, especially around rent payments and maintenance requests.

Update Your Forms: Ensure you're using the most current versions of all LTB forms, especially N4 notices with the new 7-day timeline.

Plan for the Transition: Some changes might create confusion initially as everyone adjusts to new procedures. Be patient and make sure you're following the correct process for each situation.

Potential Challenges to Watch For

While these changes should generally make things easier for property owners, there are a few things to keep an eye on:

Initial Confusion: Any time there are significant changes to established procedures, there's usually a period of adjustment where everyone – landlords, tenants, and even LTB staff – are learning the new system.

Documentation Requirements: With faster timelines, proper documentation becomes even more critical. Make sure you're keeping detailed records of everything.

Tenant Pushback: Some tenants and advocacy groups oppose these changes, so you might encounter more resistance or challenges during the transition period.

The Bottom Line for Hamilton Property Owners

Bill 60 represents a shift toward a faster, more streamlined rental system that should work better for property owners. The changes are designed to reduce delays and give you more control over your investments.

For small-scale landlords and Hamilton property owners, these changes should make it easier to manage problem tenants and maintain profitable rental operations. The faster timelines mean less time dealing with non-paying tenants, and the new rules around tenant claims should reduce frivolous delays in the eviction process.

The key is staying informed and adapting your procedures to work with the new system. If you're feeling overwhelmed by these changes or need help navigating the new requirements, remember that professional property management can handle all these details for you, ensuring you stay compliant while maximizing your returns.

These changes are coming whether we're ready or not, so the best approach is to understand them, prepare for them, and use them to your advantage. Bill 60 should ultimately make rental property ownership more predictable and profitable – which is good news for anyone invested in Ontario's rental market.

For more detailed guidance on how these changes might affect your specific situation, or to explore how professional property management can help you navigate these new requirements, feel free to reach out to our team. We're here to help Hamilton property owners succeed in this changing landscape.