In Ontario, it is illegal to evict a tenant using an N12 Notice for personal use if the true intention is to list the property on a short-term rental platform like Airbnb. If a landlord is caught acting in bad faith, the Landlord and Tenant Board (LTB) can order them to pay the tenant up to $50,000 CAD in compensation (under the increased limit established by O. Reg. 42/25).
With real estate markets booming in cities like Toronto, Ottawa, and Mississauga, many landlords are tempted by the high profits of short-term rentals. However, Ontario’s residential laws strictly protect tenants from being displaced solely for a landlord’s financial gain. If you are a tenant who has received an N12 eviction notice, or a landlord considering issuing one, you must understand the severe legal consequences of bad-faith evictions.
The Residential Tenancies Act requires genuine intention when claiming personal use. Evicting someone just to flip the unit into an Airbnb is explicitly considered bad faith by the Landlord and Tenant Board (LTB). Navigating this area of law can be stressful and complex. Generally, it is highly recommended to consult an experienced paralegal or law firm from our directory to protect your rights and finances. 📚
Step-by-Step Process in Ontario
Understanding how an N12 notice works and how bad-faith evictions are handled at the LTB is crucial. Whether you are in Hamilton, London, or smaller Ontario towns, the rules remain exactly the same across the province. 📝
Step 1: Understanding the N12 Notice Requirements
An N12 Notice is officially titled “Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit.” To issue this legally, the landlord (or their immediate family) must genuinely intend to move into the unit and live there as their primary residence for at least one full year. They must also pay the tenant one month’s rent in compensation before the termination date.
Step 2: Identifying Bad Faith and the Airbnb Trap
Bad faith occurs when a landlord lies about moving in. If the tenant moves out and subsequently discovers the unit listed on a short-term rental platform like Airbnb or VRBO, this is clear evidence of a bad-faith eviction. The law specifically outlaws using the N12 process to convert long-term housing into short-term tourist accommodations. 💻
Step 3: Filing a T5 Application at the LTB
If a former tenant finds their old apartment on Airbnb within a year of being evicted, they can file a T5 Application (Tenant’s Notice of Application for a Bad Faith Eviction) with the LTB. The tenant must gather evidence, such as screenshots of the Airbnb listing, reviews from guests, and photos of the property. This evidence will be presented to an adjudicator at a formal hearing.
Step 4: LTB Hearing and Severe Penalties
At the hearing, the burden of proof shifts to the landlord to explain why they did not move in. If the adjudicator rules in the tenant’s favour, the financial penalties are massive. The LTB can order the landlord to pay the tenant for moving expenses, higher rent paid at their new home for up to one year, and general compensation, capped at a maximum of $50,000 CAD (which was increased from $35,000 CAD on October 1, 2025, under O. Reg. 42/25). Additionally, the landlord may face separate offence fines payable to the province. 💰
How Much Does it Cost in Ontario?
Disputing a bad-faith eviction involves several costs, although tenants can often recover these if they win their case at the LTB.
- LTB Filing Fees: Filing a T5 application currently costs approximately $48 CAD if filed online through the Tribunals Ontario Portal.
- Paralegal or Lawyer Fees: Retaining legal representation for an LTB hearing usually costs between $1,500 and $3,500 CAD, depending on the complexity of the evidence and hearing length.
- Potential Landlord Fines: Beyond the $50,000 CAD tenant compensation, landlords can face maximum offence fines up to $100,000 CAD (for individuals) or $500,000 CAD (for corporations) under the RTA, following legislative increases that took effect on July 1, 2026.
How Long Does the Process Take?
The timeline at the Landlord and Tenant Board can be lengthy due to heavy backlogs. Once a tenant files a T5 application, it typically takes 8 to 12 months to get a hearing date. After the hearing, the adjudicator may take another 30 to 90 days to release their final written decision. Despite the long wait, tenants have up to one year from the date they moved out to file the T5 application. ⏳
N12 Good Faith vs. Bad Faith Eviction
| Scenario | Good Faith (Legal) | Bad Faith (Illegal) |
|---|---|---|
| Occupancy Duration | Landlord lives in the unit for at least 12 uninterrupted months. | Landlord never moves in, or moves out after a few weeks. |
| Intended Use | Used as a primary, permanent residence. | Listed on Airbnb, VRBO, or re-rented at a higher price. |
| Tenant Compensation | Landlord pays the required one month’s rent upfront. | Landlord tries to skip the compensation or tricks the tenant into signing an N11. |
Frequently Asked Questions (FAQ)
What if my circumstances genuinely changed after the tenant left?
If an unforeseeable life event occurs (such as a severe illness, sudden job relocation, or death in the family) that prevents you from moving in, the LTB may rule it was not bad faith. However, you must provide strong documentary evidence of this sudden change.
Can I evict a tenant to do renovations for an Airbnb?
No. You can issue an N13 notice for major renovations, but the law requires you to offer the unit back to the original tenant at the same rent once the work is done. You cannot use renovations as a loophole to start a short-term rental.
Do I have to sign an N12 if I know the landlord is lying?
Tenants never sign an N12; it is merely a notice. If you suspect bad faith, you have the legal right to stay in your unit and wait for an LTB hearing. The landlord must prove their case to an adjudicator before you can be forcibly evicted.
How do I prove the unit is on Airbnb?
Take date-stamped screenshots of the online listing, save the URL, and look for identifying features in the photos (like unique windows or flooring). You can also ask former neighbours if they have seen tourists with luggage coming and going.
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