To legally garnish an evicted tenant’s wages in Ontario, a landlord must first obtain a final order for rent arrears from the LTB. This order must then be filed with the Small Claims Court, where you can request a Notice of Garnishment to serve directly to the former tenant’s employer or bank.
Evicting a non-paying tenant is often just the first half of a landlord’s nightmare. After finally regaining possession of a property in Brampton, Markham, or Windsor, many landlords are left with thousands of dollars in unpaid rent and a physically empty unit. It is a common misconception that the Landlord and Tenant Board (LTB) will collect the money for you. The LTB only issues the piece of paper saying you are owed the money; enforcing that order falls entirely on the landlord’s shoulders.
When a former tenant refuses to pay an LTB judgement, you must escalate the matter to the traditional civil court system. 💰 Wage garnishment is one of the most effective tools for debt recovery. It forces the tenant’s employer to deduct a portion of their paycheque and send it directly to the court, which then forwards the funds to you. However, the process of turning an LTB order into a binding garnishment is highly procedural. This guide outlines the steps required to legally recover your lost rental income.
Step-by-Step Process for Garnishing a Tenant’s Wages in Ontario
Navigating the post-eviction collection process requires precision. If you skip a step or file the wrong forms, the courts will reject your garnishment request. Generally, landlords follow this structured enforcement path.
Step 1: Obtain the Final LTB Order
You cannot garnish wages based on an N4 notice or a missed payment alone. You must go through the L1 or L9 hearing process at the Landlord and Tenant Board. The adjudicator will issue a final, written LTB Order stating the exact dollar amount of rent arrears the tenant owes you. You must wait for the review period (usually 30 days) to pass to ensure the tenant has not appealed the decision.
Step 2: File the Order in Small Claims Court
Once the LTB order is final, you must take it to the Ontario Small Claims Court in the jurisdiction where the rental unit is located. 📂 You will file the LTB order along with an Affidavit for Enforcement Request. This officially converts the LTB tribunal order into a binding civil court judgement, allowing you to use the court’s powerful collection tools.
Step 3: Locate the Tenant’s Employer or Bank
The court will not find the tenant’s money for you; you must provide the target. Hopefully, you kept a copy of the tenant’s initial rental application. If they are still working at the same job, you will garnish the employer. If you have photocopies of their rent cheques, you have the transit and institution numbers required to garnish their specific bank account.
Step 4: Request a Notice of Garnishment
File an Affidavit for Enforcement Request and a Notice of Garnishment with the Small Claims Court clerk. You must swear under oath that the debt remains unpaid. 📝 The clerk will stamp and issue the Notice of Garnishment. You must then formally serve this notice to the “Garnishee” (the employer or the bank) and mail a copy to the former tenant.
Step 5: Receiving the Funds
Once served, the employer is legally obligated to deduct a maximum of 20% of the tenant’s net wages per pay period. The employer sends these funds directly to the Small Claims Court. The court holds the money briefly to ensure there are no legal disputes, and then issues a cheque directly to the landlord.
How Much Does it Cost in Ontario?
Debt collection is a “pay to play” system. Landlords must invest upfront capital to chase down the owed money.
- Small Claims Filing Fees: Filing an LTB order with the Small Claims Court costs $45 CAD. Issuing a Notice of Garnishment costs an additional $144 CAD.
- Service Costs: Hiring a professional process server to deliver the garnishment to the employer usually costs $100 to $150 CAD.
- Collection Agencies: If you do not want to do this yourself, you can hire a collection agency. They charge zero upfront, but take a massive cut-usually 30% to 50% of whatever they successfully collect.
- Legal Fees: Hiring a paralegal or law firm to handle the entire garnishment process from start to finish generally costs $500 to $1,200 CAD.
How Long Does the Process Take?
The collection timeline requires immense patience. Securing the initial order at the LTB can take 6 to 9 months. After filing it in Small Claims Court, issuing and serving the garnishment takes roughly 2 to 4 weeks. Once the employer starts deducting wages, the court usually releases the first batch of funds to the landlord within 30 to 45 days. Depending on the size of the debt and the tenant’s salary, it can take several years of continuous garnishment to fully recover $15,000 in unpaid rent.
Comparing Garnishment Targets
| Garnishment Target | Pros | Cons |
|---|---|---|
| The Employer (Wages) | Steady, recurring payments until the debt is paid. | Tenant might quit their job; limited to 20% of net pay. |
| The Bank Account | Can capture a large lump sum of cash instantly. | A one-time hit. If the account is empty that day, you get nothing. |
| Joint Bank Accounts | Access to funds held with a new partner. | You can only legally seize 50% of a joint account’s balance. |
Frequently Asked Questions (FAQ)
What happens if the tenant is on Ontario Works or ODSP?
Government social assistance payments, including OW, ODSP, CPP, and Employment Insurance (EI), are legally exempt from garnishment. If the tenant’s sole source of income is government assistance, you cannot garnish their bank account or “wages.”
Can the tenant’s employer refuse to comply with the garnishment?
No. A Notice of Garnishment is a strict court order. If an employer ignores it and pays the tenant their full wages, the landlord can sue the employer directly for the amount they failed to deduct.
What if the tenant moved and I don’t know where they work?
You can request an Examination Hearing at the Small Claims Court. This forces the former tenant to attend court under oath and answer questions regarding their current employment, bank accounts, and assets. If they fail to attend, a warrant can be issued for their arrest.
How long is an LTB order valid for collection?
In Ontario, a court or tribunal judgement is generally valid for enforcement for a period of 10 years. However, if you wait too long to begin the Small Claims process, you may need a judge’s permission to execute the garnishment after a certain number of years have passed.
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