How Will Ontario’s Bill 60 Impact Investors?

If you own a rental property in Ottawa or you’re thinking about buying one, Ontario’s Bill 60 is something worth understanding.

The legislation, officially called the Fighting Delays, Building Faster Act 2025, includes several changes to Ontario’s Residential Tenancies Act. For real estate investors, some of the most important changes deal with unpaid rent, persistent late payments, Landlord and Tenant Board hearings and situations where a landlord needs a property back for their own use.

The goal is partly to make certain landlord and tenant processes faster and more predictable.

Does that suddenly make owning a rental property easy? Definitely not but it may change some of the risk calculation for Ontario investors.

Faster Action When Rent Isn’t Paid

One of the most significant changes involves unpaid rent.

Previously, for most tenancies, an N4 notice for non-payment of rent provided a termination date at least 14 days after the notice was given. Under the new rules, that period has been shortened to seven days.

That doesn’t mean a tenant is automatically evicted after seven days. There is still a formal process that landlords must follow and a tenant can void an N4 by paying the required arrears before the landlord applies to the Landlord and Tenant Board.

What it does mean is that a landlord can potentially begin the next stage of the process sooner when rent goes unpaid.

For an investor carrying a mortgage, property taxes, insurance, condo fees, utilities or maintenance costs, time matters. A rental property’s expenses don’t stop simply because the rent does.

Thinking about investing in real estate? Check out these related readings for more advice!

Persistent Late Payments Are Better Defined

Bill 60 also provides more clarity around tenants who repeatedly pay their rent late.

The regulations now state that persistent late payment includes situations where a tenant fails to pay the rent within seven days of its due date on at least three occasions within a six-month period, subject to certain exceptions. Other circumstances may still qualify as persistent late payment as well.

That additional clarity is important for landlords because there is now a more defined benchmark for one type of persistent late-payment situation.

For investors, it reinforces something we’ve always recommended: keep detailed records. Document when rent is due, when it is received and any communication regarding late or missed payments.

Changes to Rent Arrears Hearings

There are also changes to what happens when a tenant wants to raise their own issues during a landlord’s application involving rent arrears.

Under the new legislation, a tenant who wants to raise certain issues at that hearing must meet additional requirements. Unless an exception applies, that includes paying half of the rent arrears claimed in the landlord’s application, with that payment generally required before the hearing.

The intent is to create a more structured process around rent arrears hearings.

For landlords, that could help make the process somewhat more predictable, although every case is different and Landlord and Tenant Board matters should always be handled carefully.

Taking Back a Rental Property for Personal Use

Another important change involves landlords who legitimately need a rental property for their own use.

Ontario generally requires compensation when a landlord ends a tenancy for personal use. However, under Bill 60, that compensation requirement can be eliminated when the landlord provides the tenant with at least 120 days’ notice, provided the other requirements are satisfied.

That can be particularly relevant to smaller investors who own one or two properties and whose circumstances may change.

Perhaps you purchased a condo as an investment but eventually need it for yourself or an eligible family member. The new rule gives landlords another option but the notice requirements and good faith rules still matter.

Does Bill 60 Make Rental Properties a Better Investment?

Potentially, but it shouldn’t be the reason you buy one.

Bill 60 addresses some concerns landlords have had about the predictability of Ontario’s rental system. Faster timelines for an N4, clearer rules around persistent late payments and changes to certain LTB procedures may reduce some of the uncertainty investors have faced.

But legislation is only one part of the equation.

When we help someone evaluate an Ottawa investment property, we’re looking at the entire picture: purchase price, achievable market rent, mortgage payments, property taxes, insurance, condo fees if applicable, maintenance, potential vacancies and long-term resale value.

You also need to consider the property itself.

A well-located townhouse with strong rental demand can be a very different investment from a downtown condo with high monthly fees or an older property that may require significant maintenance. Two properties with the same purchase price can produce completely different returns.

Thinking about investing in real estate? Check out these related readings for more advice!

Tenant Selection Still Matters

No legislation replaces proper tenant screening.

A strong rental application process should include employment and income verification, references, credit history and appropriate supporting documentation. Investors should also understand the local rental market before deciding what rent they can realistically achieve.

Overpricing a rental can be just as costly as underpricing one if the property sits vacant for an extended period.

The Bottom Line for Ottawa Investors

Bill 60 introduces several changes that should be positive for responsible landlords but it doesn’t completely eliminate the risks that come with owning a rental property.

The fundamentals still matter most: buy the right property, at the right price, in the right location, understand your expenses and choose your tenants carefully.

If you’re considering buying an investment property in Ottawa, the Pilon Group can help you evaluate the numbers, understand the local rental market and determine whether a property makes sense as an investment.