Are you an Ontario landlord struggling to recover money from tenants who left owing rent? You’re not alone. Many Toronto, Mississauga, and GTA property owners face this exact challenge every month.
What Ontario Landlords Need to Know About Tenant Debt Collection
Did you know that winning at the Landlord and Tenant Board is just the first step? Many Ontario property owners don’t realize that getting that LTB order doesn’t automatically put money back in your pocket.
“Getting the order at the landlord and tenant board is the first part, it’s the easy part. Now the heavy lifting begins,” explains Gibrian, who specializes in helping GTA landlords recover their losses.
The most shocking revelation for many Ontario rental property owners? The LTB has no power to enforce monetary orders in Ontario – that’s where Small Claims Court comes in.
Why Ontario Landlords Choose Wage Garnishment for Tenant Debt
For Mississauga, Toronto, and other Ontario landlords, garnishment offers the most direct path to recovering your rental losses. This Ontario-specific legal process allows you to:
- Collect directly from the tenant’s Ontario employer (20% of each paycheck)
- Access funds from Ontario bank accounts
But timing is everything – one wrong move and your former tenant might empty their accounts before you can collect what’s legally yours under Ontario law.
Which Ontario Tenants Are Hardest to Collect From?
Not all Ontario tenants are equal when it comes to debt collection. The podcast highlights specific challenges for landlords in the Greater Toronto Area:
- Self-employed individuals in Ontario (requiring special garnishment approaches)
- Ontario Works or ODSP recipients (payments protected under provincial regulations)
- “Judgment proof” tenants with no Ontario-based assets or income sources
Protect Your Ontario Rental Property Investment From Day One
“I got a buddy of mine to make me a pay stub saying that I work for the Toronto Blue Jays and make $800,000 a year,” Kevin shares, revealing how easily rental applications can be faked in Ontario’s competitive market.
That’s why thorough tenant screening using Ontario-specific services is critical for landlords across the GTA and beyond.
I’ve created a complete Ontario-focused guide on garnishing money from tenants who owe you – check out the full resource for step-by-step instructions tailored to Ontario’s provincial regulations.
Curious about protecting your Ontario rental investment? Don’t miss the full podcast episode with Gibrian Malicki-Sanchez for expert advice specific to landlords in Toronto, Mississauga, and throughout Ontario.
Ontario Landlord’s Guide: How to Garnish Money from Tenants Who Owe You in 2025
Overview
This comprehensive guide outlines the legal process for Ontario, Canada landlords to collect money owed by tenants after receiving an order from the Landlord and Tenant Board (LTB). Following Ontario’s provincial regulations, this step-by-step approach helps Greater Toronto Area landlords and property owners across the province recover their rental losses.
Step 1: Get Your LTB Order
- Obtain an order from the Landlord and Tenant Board that states the amount owed (rent, damages, etc.)
- The order will include the awarded amount plus your application fee and applicable interest
Step 2: File with Small Claims Court
- The LTB doesn’t have jurisdiction to enforce monetary orders – Small Claims Court does
- File your LTB order at Small Claims Court using a “Certificate of Judgment” form
- This form includes all financial information from the LTB order
- You’ll receive a judgment with a Small Claims Court file number and official seal
- Note: $35,000 is the maximum amount that can be collected (Small Claims Court limit)
Step 3: Choose Your Enforcement Method
Small Claims Court offers four enforcement options:
- Garnishment (most common for landlords)
- Writ of seizure and sale of personal property
- Writ of seizure and sale of land
- Writ of delivery
Step 4: Prepare Garnishment Documents
To proceed with garnishment, complete these forms:
- Affidavit of Enforcement Request
- Notice of Garnishment
- Garnishee’s Statement
Step 5: Serve the Garnishment Documents
- Serve the documents on the garnishee (usually the tenant’s employer or bank)
- Don’t tip off the debtor beforehand to prevent them from moving their money
Step 6: Collection Process
For bank accounts:
- The bank will pay the money into court
- Court holds it for 30 days
- Money is then paid out proportionally to all registered garnishees
For employers:
- They will garnish 20% of each paycheck until the debt is paid
- For joint bank accounts, you can only garnish up to 50% of the amount
Important Considerations
Judgment-Proof Debtors
Be aware some debtors may be “judgment proof” if they:
- Have no garnishable income source
- Don’t have assets or bank accounts that can be seized
- Receive government benefits that cannot be garnished (e.g., ODSP)
Self-Employed Debtors
- More challenging to garnish
- You must serve whoever owes them money through contracts
- Consider if enforcement is worth the cost
Missing Information
If you lack necessary information, you can:
- Serve a Notice of Examination requiring them to appear in court
- Ask financial questions under oath (income sources, assets, bank accounts)
- Use driver’s license information to locate them if they’ve moved
- Hire a skip tracer to find people who have disappeared
Contempt of Court
- If the debtor doesn’t attend an examination hearing, they could be found in contempt
- The court can issue a warrant for their arrest
Preventative Measures
- Collect comprehensive information during tenant screening (employer details, banking information)
- Verify information to detect fraudulent applications
- Check public databases for previous LTB judgments against potential tenants
- Consider using tenant screening services
Final Considerations
- Weigh the cost of enforcement against the amount owed
- Consider consulting a legal professional to ensure forms are completed correctly
- Decide whether to pursue collection or write off the debt as a business loss
Related: Stress-free tools for landlords
