Navigating the Bill 60 Own Use Eviction Rules: A Guide for Toronto Landlords

Being a landlord in Toronto is often a balancing act between managing an investment and staying on the right side of ever-shifting legislation. With the passing of Bill 60 (the Fighting Delays, Building Faster Act, 2025), the scales have shifted again.

If you are planning to move into your rental unit or have a family member take it over, the rules for N12 "Own Use" evictions just got a major update.

Here is the truth about how Bill 60 changes the game for you, and how you can stay compliant while protecting your property rights.

The 120-Day Rule: A Major Shift in Compensation

Before Bill 60, if you issued an N12 notice for own use, you were legally required to pay the tenant one month’s rent as compensation (or offer another acceptable unit). This was a flat rule, regardless of how much notice you gave.

Under Bill 60, that has changed.

If a landlord gives a tenant an N12 notice with a termination date that is at least 120 days after the notice is given, the landlord is no longer required to pay that one month of compensation.

Why this matters for Toronto Landlords:

1. Cost Savings: By planning ahead and giving your tenant 4 months' notice instead of the traditional 60 days, you save the equivalent of one month's rent.

2. Longer Transitions: It provides a smoother exit for tenants, potentially reducing the friction that leads to contested LTB hearings.

3. Strategic Planning: If you aren't in a rush to move in, the 120-day window is financially the most logical choice.

Other Bill 60 Changes You Need to Know

While the N12 compensation change is the headline for many, Bill 60 introduced several other "streamlining" measures designed to clear the Landlord and Tenant Board (LTB) backlog.

1. The 50% Rule for Arrears Hearings

If you are evicting a tenant for non-payment of rent (N4), Bill 60 adds a hurdle for tenants. If a tenant wants to raise maintenance issues as a defense during an eviction hearing, they must now pay 50% of the claimed arrears to the LTB or the landlord before the hearing. This prevents tenants from using "bad maintenance" as a last-minute tactic to avoid paying rent they legitimately owe.

2. Shortened N4 Notice Periods

The "grace period" for non-payment has been cut. Under Bill 60, the notice period for an N4 is shortened to 7 days. Previously, tenants had 14 days to pay up before a landlord could file for eviction.

3. Faster Review Requests

If an LTB order is issued and either party wants a review, the deadline to submit that request has been slashed from 30 days down to 15 days.

Quick Reference: Bill 60 vs. The Old Rules

How to Protect Your Investment

The Ontario rental market is becoming increasingly procedural. A single mistake on an N12 or N4 form can result in your application being dismissed after months of waiting for a hearing.

Because the timelines are now shorter and the compensation rules have changed, your documentation must be perfect. For professional resources, updated forms, and expert advice on managing your Toronto rental properties under these new laws, visit GTA Landlord.

5 Frequently Asked Questions (FAQ)

1. Do I still have to pay compensation if I give only 60 days' notice? Yes. If you choose to give the minimum 60 days' notice required by the RTA, you must still pay the one month’s rent compensation. The "zero compensation" rule only applies if you provide at least 120 days' notice.

2. Can I use Bill 60 rules for a notice I gave last year? No. Bill 60 rules apply to notices given on or after the date the specific schedule of the Act came into effect. If your case is already in the system from 2024, the old rules likely apply.

3. What if the tenant moves out earlier than the 120 days? If the tenant chooses to move out earlier after receiving your N12, they must give you at least 10 days' notice (N9). In this case, you still benefit from the 120-day compensation waiver, provided your original notice was for the full 120 days.

4. Does the "Own Use" rule apply to selling the house? If you are selling and the buyer wants to move in, you still use the N12. The 120-day rule for compensation waiver applies here as well, helping you save money during the closing process.

5. Is the 120-day rule only for Toronto? While the Toronto market is the most affected due to high rents, Bill 60 is provincial legislation. These rules apply to all landlords across Ontario.