Ontario Landlord and Tenant Board Monetary Cap Increasing to $50,000: What Landlords and Tenants Need to Know

Following the announcement that Ontario’s Small Claims Court limit will increase from $35,000 to $50,000 on October 1, 2025, an important but less publicized amendment will also take effect:

The monetary jurisdiction of the Landlord and Tenant Board (LTB) will increase from $35,000 to $50,000.

This change carries significant implications for both landlords and tenants, particularly in the context of rent arrears, compensation claims, and administrative fines.

Why Is the LTB Cap Changing?

Under section 207(1) of the Residential Tenancies Act, 2006 (RTA), the monetary jurisdiction of the LTB is “tied” to that of the Small Claims Court. This means any increase in the Small Claims Court limit automatically results in an equivalent adjustment to the LTB’s monetary ceiling.

What This Means for Landlords

1. Expanded Scope for Rent Arrears and Damages

Landlords will now be able to file LTB applications seeking up to $50,000 in unpaid rent, utility arrears, or damages to rental units — a significant increase from the current $35,000 cap.

This change is especially helpful for:

• Landlords of high-rent properties, such as multi-unit or downtown Toronto rentals.

• Long-standing arrears cases, where rent debt accumulated over many months or years.

• Landlords facing tenants who have abandoned or damaged units, where total losses often exceed $35,000.

Previously, landlords in such situations were forced to either:

• Forgo claims above the $35,000 limit, or

• File in Superior Court — a process that is costlier, slower, and more legally complex.

The new $50,000 limit reduces the need for those difficult trade-offs.

2. Increased Maximum Fines Payable to the LTB

The LTB also has the authority to order fines payable to the Board, typically for violations by landlords (e.g., illegal evictions, bad-faith applications). The current $35,000 maximum penalty will also rise to $50,000, making penalties for misconduct potentially more significant.

Why This Matters for Tenants

For tenants, the increase means:

• Stronger protections, as landlords seeking large arrears or damages may now pursue claims more easily at the LTB instead of the Superior Court.

• Potentially higher financial exposure in LTB proceedings — tenants facing eviction applications tied to high-value claims may now be dealing with more substantial monetary consequences.

At the same time, tenants who seek compensation from landlords, such as for maintenance failures, illegal entry, or other breaches, can also benefit from the higher monetary cap.

Strategic Considerations

For Landlords:

• Review outstanding arrears and damage claims: If a claim is close to or just above $35,000, waiting until after October 1, 2025, to file could be advantageous.

• Avoid limitation issues: The general limitation period for most monetary claims is two years. Don’t delay filing if you’re approaching that deadline.

• Document thoroughly: Higher-value claims will face greater scrutiny — prepare solid evidence, especially for damages or tenant breaches.

For Tenants:

• Be aware of increased claim exposure: Tenants disputing large arrears or damage allegations should prepare more robust defences.

• Know your rights: Tenants can also seek compensation up to $50,000 after October 1, 2025, for issues like harassment, privacy breaches, or illegal rent increases.

Conclusion

The October 1, 2025, increase in Ontario’s LTB monetary cap to $50,000 is a major development in the province’s housing law landscape. It provides landlords and tenants with expanded access to justice, enabling them to resolve higher-value disputes within the LTB system, avoiding the time, cost, and complexity of the Superior Court.

Whether you are a landlord seeking overdue rent or a tenant asserting your rights, Understanding this change — and strategically planning your next steps — will be key to protecting your interests under the updated rules.