Inherited a Rental Property in Ontario? Tenant Rules 2026
If you have inherited a rental property in Ontario, the tenants stay. A landlord's death does not end a tenancy. The lease, the rent, the last month's rent deposit and every tenant protection in the Residential Tenancies Act, 2006 carry on exactly as before. What changes is who acts as the landlord: first the estate trustee, then the beneficiary or buyer who ends up on title. The estate trustee collects the rent, tells the tenants where to pay, keeps the unit in repair and honours the deposit. A beneficiary who wants to move in can use Form N12 only under strict conditions, and a sale with an N12 for the purchaser works only for a building with three or fewer units or a condo unit.
Last updated: October 2026 · Reviewed by: Oliver Subak, Principal, Property Management Partners
Settling an estate that includes a tenanted Toronto property and not sure what to do first? Book a discovery call: https://propertymanagmentgta.com/discovery-call-page.
The short version for Toronto and Greater Toronto Area heirs
The tenancy survives. Section 37(1) of the Residential Tenancies Act, 2006 says a tenancy "may be terminated only in accordance with this Act." The death of the landlord is not one of the ways a tenancy ends.
The estate becomes the landlord. The Act's definition of landlord in section 2(1) includes the owner's "heirs, assigns, personal representatives and successors in title", and section 18 says covenants concerning the rental unit run with the land.
The estate trustee acts first. Ontario's probate guidance states that "an estate trustee is the only person with the legal authority to manage or distribute an estate."
Rent keeps coming due. Give every tenant a written notice with the estate trustee's name, an address for notices and the new payment instructions, and issue receipts on request under section 109.
Own use has conditions. An N12 under section 48 needs an individual landlord, a good faith plan to live in the unit for at least one year, at least 60 days' notice ending on the last day of a rental period or fixed term, and one month's compensation unless the notice gives at least 120 days. The safest route is to complete the transfer into the heir's name, or get legal advice, before any N12 is served.
A sale does not end the lease. A buyer takes the tenants with the property. A purchaser's own use N12 under section 49 is available only for a residential complex with no more than three units, or a condo unit, after an agreement of purchase and sale is signed.
The deposit carries over. Section 106(10) requires the landlord to apply a deposit paid to "a former landlord" to the last rent period, and annual interest keeps falling due.
Why the tenancy survives the landlord's death
New heirs often assume that a death resets the tenancy. It does not. Ontario's rules point the other way on every count.
First, section 37(1) of the Residential Tenancies Act, 2006 (the RTA) limits how a tenancy can end: by a valid notice under the Act, by an agreement between landlord and tenant under section 37(3), or by an order of the Landlord and Tenant Board. Nothing in the Act ends a tenancy because the landlord dies.
Second, the Act defines the landlord broadly. Section 2(1) says "landlord" includes the owner and "the heirs, assigns, personal representatives and successors in title" of the owner. The estate trustee is the deceased owner's personal representative, and the beneficiary who later takes title is an heir or successor in title. Both step into the same landlord role, with the same duties.
Third, section 18 provides that "covenants concerning things related to a rental unit or the residential complex in which it is located run with the land." The promises in the lease bind whoever holds the property.
Compare that with the rule for a tenant's death. Section 91(1) says that if a tenant dies and there are no other tenants, the tenancy is deemed terminated 30 days after the death. The Act contains no matching rule for a landlord. A fixed term lease runs to its end date, and section 38(1) then renews it as a monthly tenancy on the same terms unless it is properly ended. A monthly tenancy simply continues.
In practice, that means:
The tenants keep the right to stay, the same rent and the same lease terms.
The repair duty in section 20(1) continues. The landlord remains "responsible for providing and maintaining a residential complex, including the rental units in it, in a good state of repair and fit for habitation."
Vital services cannot lapse. Section 21(1) bars a landlord from withholding the reasonable supply of any vital service the landlord must supply, so keep heat, hydro, water and gas accounts paid while the estate is being settled.
Who holds the property now: joint owner, estate or beneficiary
Before you deal with the tenants, confirm who actually holds the property, because that person or office is the landlord today.
Joint ownership: joint tenants or tenants in common
When two or more people owned the property, the way they held title decides what happens next. Check the deed or parcel register with your real estate lawyer.
Joint tenants. The surviving owner becomes the sole owner by survivorship. The Estates Administration Act applies to property held "without a right in any other person to take by survivorship," so survivorship property passes outside the estate. The survivor is the landlord, but the title still needs updating to remove the deceased owner's name. Confirm the change with the tenants in writing.
Tenants in common. There is no survivorship. The deceased owner's share passes to their estate, so the surviving owner and the estate trustee are landlords together until the share is transferred or sold. They should agree on who collects rent and who signs notices, and tell the tenants in one joint letter.
Sole ownership: the property vests in the estate trustee
If the deceased owned the property alone, section 2(1) of the Estates Administration Act says it "devolves to and becomes vested in his or her personal representative from time to time as trustee for the persons by law beneficially entitled thereto." In plain terms, the estate trustee holds the property for the beneficiaries until it is transferred or sold.
With a will, the person named in the will as estate trustee (often called the executor) usually applies for probate.
Without a will, Part II of the Succession Law Reform Act sets out who inherits, and the court appoints an estate trustee on application.
Section 9(1) of the Estates Administration Act adds a time element. Real property that the estate trustee has not distributed or dealt with within three years of the death vests in the beneficiaries, unless the trustee registers a caution on title. That vesting changes who the landlord is: the beneficiaries, not the estate trustee, would then hold the property and carry the landlord's duties to the tenants. Ask the estate's lawyer whether a caution is needed if the property will be held for a while.
Probate and the certificate of appointment
Ontario's guidance on how to apply for probate of an estate explains that a Certificate of Appointment of Estate Trustee gives "the authority to manage the estate assets and pay the estate debts." It also says that if the deceased owned real property or assets held by a financial institution, the estate normally must be probated, and that a certificate should be obtained "before anyone enters into an Agreement of Purchase and Sale." A Small Estate Certificate is available for estates valued at up to $150,000.
Probate involves Estate Administration Tax, paid by the estate, and an Estate Information Return filed with the Ministry of Finance within 180 calendar days after the certificate is issued. The Estate Administration Tax page explains both. None of this pauses the tenancy. Rent, repairs and notices continue while the court process runs.
The estate trustee steps into the landlord role
Once you know who holds the property, the estate trustee (or the surviving joint owner) is the landlord for every practical purpose. The tenants deal with that person. That role carries real obligations.
What the estate trustee does as landlord:
Collects rent and issues receipts on request (section 109).
Keeps the unit in good repair and complies with maintenance standards (section 20).
Keeps vital services running (section 21).
Respects the tenant's reasonable enjoyment and gives proper written notice before entering the unit, as the Act requires.
Holds and applies the last month's rent deposit and pays the annual interest (section 106).
Serves any notice of rent increase or termination in the proper form and on time.
Keeps the property insured. Tell the insurer about the death promptly, because a policy in the deceased's name may need to be updated or replaced. Ask the broker in writing.
Where several estate trustees are named, agree on one point of contact for the tenants. Tenants should not receive conflicting instructions about where to pay or who to call for repairs.
Where the property is a condo unit, tell the condo corporation's management office who now acts for the owner, so building notices, fob requests and common element issues reach the right person.
Rent collection: where tenants should pay
Rent is still owed every month. The question is where it goes. Many tenants paid the deceased owner directly, by cheque, by electronic transfer to a personal account, or by automatic payment. Once the bank learns of the death, that personal account may no longer be usable for rent. Plan the change before the next rent date.
Tell the tenants in writing
Section 12(1) of the RTA requires a written tenancy agreement to set out "the legal name and address of the landlord to be used for the purpose of giving notices or other documents under this Act." When the landlord changes, update that information. Send each tenant a short, dated letter that includes:
A respectful notice that the owner has died and that the tenancy continues on the same terms.
The name of the estate trustee and the legal name and address to use for notices under the Act.
How and where to pay rent from now on, with the first due date the new instructions apply to.
Who to contact for repairs and emergencies, with a phone number and email.
Confirmation that the last month's rent deposit, if any, is recorded and will be applied as the law requires.
Keep a copy of every letter and record how and when you delivered it.
Rent paid to the old account
Payments a tenant made in good faith to the deceased owner's account, before being told about the change, generally should not be treated as arrears. The tenant paid where they were told to pay. Handle it this way:
Give written notice first. Send the letter above with the new landlord's legal name, the address for service and the new payment instructions.
Recover or reconcile the funds through the estate. Work with the estate's lawyer and the bank to recover or account for rent that landed in the old account. That account may be frozen after the death, so allow time.
Keep a paper trail. Record when and how each tenant was notified, and keep copies of the letter, delivery records and payment history. If a dispute ever reaches the Landlord and Tenant Board, that record shows when the new instructions took effect.
Practical rent points
Open an estate account. The estate's lawyer or bank can advise on an account in the estate's name, so rent is not mixed with personal money.
Replace postdated cheques. Cheques made out to the deceased may not clear. Ask tenants for new cheques or set up a new electronic payment method.
Issue receipts. Section 109(1) requires a landlord to provide, free of charge and on request, a receipt for any rent, rent deposit or other amount paid. Former tenants can also ask.
Real arrears follow the normal process. If rent is genuinely unpaid after the new instructions, the usual steps apply. Our guide to how long an Ontario eviction takes in 2026 explains the notices, the Landlord and Tenant Board filing and the timeline.
Rent increases do not reset
A change of landlord does not allow a new rent. The existing rent continues, and future increases follow the normal rules. Section 116(1) requires at least 90 days' written notice, and section 119(1) requires at least 12 months between increases. For a rent controlled unit, the increase is capped at the guideline. Ontario's residential rent increases page lists the guideline at 2.1% for 2026 and 1.9% for 2027. Units first occupied for residential purposes after November 15, 2018 are exempt from the cap under section 6.1, but the notice and timing rules still apply. Our guide to the 2026 rent increase guideline and Form N1 walks through the notice step by step.
If the deceased owner never used the Ontario standard lease for a tenancy that required it, or the paperwork is incomplete, our guide to the Ontario Standard Form of Lease explains what the form covers and what tenants can request.
Notices: what an heir can and cannot do
This is where most estates make expensive mistakes. A new owner or estate trustee cannot simply ask the tenants to leave because the owner has died, because the family wants to sell, or because the property would be worth more vacant. Every termination must follow a ground in the Act, in the right form, with the right notice period.
N12 for a beneficiary's own use
Section 48(1) lets a landlord end a tenancy if the landlord "in good faith requires possession of the rental unit for the purpose of residential occupation for a period of at least one year" by:
the landlord;
the landlord's spouse;
a child or parent of the landlord or the landlord's spouse; or
a person who provides or will provide care services to one of them, if the person receiving care lives or will live in the same building or complex.
The conditions that matter most for an estate:
The landlord must be an individual. Section 48(5) says the section applies only if the unit "is owned in whole or in part by an individual" and "the landlord is an individual." The Landlord and Tenant Board's N12 instructions add that "a corporation who owns a rental unit cannot give a notice of termination for this reason." If the property sits in a corporation or a trust structure, get advice before you plan an own use move.
The person moving in must be on the list. The person moving in must be the landlord or a qualifying family member or caregiver of that landlord. Once the heir is on title, that is easy to prove. Before the transfer, the Board's approach is less predictable. Holding title is not always strictly required, but it is the safest route: complete the transfer into the heir's name, or get legal advice, before serving an N12.
An N12 from the estate trustee is risky. The estate trustee is a landlord under the RTA, but acts for the estate rather than as an individual. An N12 served by the trustee for a beneficiary's use may be possible in some situations, but it is vulnerable to challenge. It is usually cleaner once the property is in the heir's name. Speak to the estate lawyer before the trustee serves any N12.
At least one year of genuine occupation. Section 72(1)(a) requires an affidavit, sworn by the person who will move in, certifying that they in good faith require the unit for their own personal use for at least one year.
At least 60 days, ending on the right day. Section 48(2) requires the termination date to be at least 60 days after the notice is given and to fall on the last day of a rental period or, for a fixed term, the end of the term. An N12 cannot cut a fixed term lease short.
Compensation or the 120 day option. Section 48.1(1) requires the landlord to pay one month's rent or offer another rental unit acceptable to the tenant. For notices given on or after September 21, 2026, section 48.1(2) removes that requirement if the termination date is at least 120 days after the notice and falls on the last day of a rental period or fixed term. The N12 instructions updated September 21, 2026 say the same. Where compensation is owed, section 55.1 requires it to be paid no later than the termination date.
The tenant can leave earlier. Under section 48(3) and (4), the tenant may end the tenancy sooner with at least 10 days' written notice.
The Board decides if the tenant stays. If the tenant does not move out, the landlord applies on Form L2. The N12 instructions say the application must be filed no later than 30 days after the termination date in the notice.
Bad faith carries a real cost. Under section 57, a former tenant can apply to the Board on Form T5 if the notice was given in bad faith and no qualifying person moved in within a reasonable time. Three rules matter most for heirs:
Listing for sale is a red flag. Section 57(5) presumes bad faith if, within one year after the tenant leaves, the landlord advertises the unit for rent, rents it to someone else, or advertises the unit or the building for sale. The landlord then has to rebut that presumption. An heir who serves an N12 for a family member and then lists the property within the year is exactly the case this rule targets.
Move in within 60 days. Tribunals Ontario's operational update for September 21, 2026 says that, effective that date, the landlord or the intended family member or caregiver "must normally take occupancy within 60 days of the date specified in the N12 Notice." If they do not, the notice is presumed to have been given in bad faith if the tenant files a T5, and the landlord can try to rebut that at the hearing. This rule does not apply to N12 notices served for a purchaser.
Higher fines. The Board can order compensation of up to 12 months of the last rent, moving and other costs, and an administrative fine under section 57(3). Separately, obtaining possession by giving a notice in bad faith is an offence under section 233. Since July 1, 2026, under the Helping Homebuyers, Protecting Tenants Act, 2023 (Bill 97), the maximum fine on conviction has doubled to $100,000 for an individual and $500,000 for a corporation (section 238). Tribunals Ontario's July 1, 2026 operational update confirms the increase and notes it does not change the Board's own administrative fines.
Selling the property with an N12 by the purchaser
Many estates sell. You have two lawful routes.
Route 1: sell with the tenants in place. The buyer becomes the landlord and takes over the lease, the rent and the deposit. Investor buyers in Toronto and across the Greater Toronto Area often prefer a property with a reliable tenant paying lawful rent. Have the rent roll, leases, deposit records and interest history ready for the buyer's lawyer.
Route 2: sell with vacant possession for a buyer who will live there. Section 49 lets the selling landlord, after signing an agreement of purchase and sale, give an N12 on behalf of the purchaser if the purchaser in good faith requires the unit for residential occupation by the purchaser, the purchaser's spouse, a child or parent of either of them, or a qualifying caregiver. The conditions:
Building size. Section 49(1) covers a residential complex that contains no more than three residential units. Section 49(2) covers a condo unit. A larger building does not qualify.
A signed agreement first. The notice can be given only once the agreement of purchase and sale exists. The probate guidance says the estate should obtain its certificate of appointment before anyone signs that agreement.
Notice period. Section 49(3) requires at least 60 days, ending on the last day of a rental period or a fixed term.
Compensation is the seller's. Section 49.1(1) requires one month's rent or another acceptable unit, and section 49.1(2) says that obligation stays with the landlord who gives the notice and "does not become an obligation of the purchaser." The 120 day exception in section 48.1(2) applies to section 48 notices, not to purchaser notices under section 49.
Affidavit. Section 72(1)(b) requires an affidavit from the person who will move in certifying their good faith.
What you cannot do is serve an N12 so the estate can sell a vacant property to an investor, or pressure the tenant to leave. If the tenant is willing to leave, section 37(3) allows the landlord and tenant to agree to end the tenancy, usually recorded on the Board's Form N11. The agreement must be genuine and voluntary, and many estates pair it with a written move out arrangement. Get advice on the wording.
Other notices continue under the normal rules
Arrears, damage, and other breaches are handled the same way they would be for any landlord. If the estate plans extensive renovations or demolition before a sale, section 50 requires at least 120 days' notice on Form N13 and carries its own conditions. In Toronto, also read our guide to the Toronto rental renovation licence and N13 notices before you plan any work that needs vacant possession.
The last month's rent deposit and interest carry over
The last month's rent deposit the tenant paid to the deceased owner is still the tenant's protection, and the estate must honour it.
The deposit must still be applied. Section 106(10) says a landlord "shall apply a rent deposit that a tenant has paid to the landlord or to a former landlord in payment of the rent for the last rent period before the tenancy terminates." The estate, and later the beneficiary or buyer, carries that obligation even though the deceased collected the money.
No second deposit. Section 106(4) bars a new landlord from requiring a deposit from a tenant who "has already paid a rent deposit to the prior landlord."
Interest keeps falling due. Section 106(6) requires annual interest at the guideline in effect when the payment becomes due. Ontario's residential rent increases page lists 2.1% for 2026 and 1.9% for 2027. If interest was missed in past years, it is still owed, and under section 106(9) the tenant may deduct unpaid interest from a later rent payment.
Top ups still work the same way. After a lawful increase, section 106(3) and (7) allow the landlord to top up the deposit, including by keeping some or all of the interest.
Key deposits. A refundable key, fob or card deposit, allowed by section 17 of Ontario Regulation 516/06 up to the expected direct replacement cost, must also be tracked and returned when the keys come back.
When the records are missing
The deceased owner may have kept deposit records in a notebook, an email folder or not at all. Rebuild the record from the lease (the Ontario standard lease records the deposit amount), old bank statements, the tenant's own receipts and any past interest letters. Write down the amount, the date it was paid, any top ups and the last interest payment. If a figure cannot be confirmed, agree it in writing with the tenant rather than guess.
Our guide to the last month's rent deposit in Ontario covers interest dates, worked examples, top ups and what happens on a sale.
Your first 30 days: a checklist for estate trustees and heirs
Use this list in the first month after the death. It keeps the tenancy stable while the estate is settled.
Confirm who holds title. Joint tenants (the survivor owns it, but title needs updating), tenants in common (the deceased's share goes to the estate), or sole ownership passing to the estate. Ask the estate's lawyer.
Confirm who the estate trustee is and whether a Certificate of Appointment of Estate Trustee will be needed for the property and the bank accounts.
Find the leases. Collect every tenancy agreement, any renewals, and any written notices given in the last two years.
Build the rent roll. For each unit: tenant names, rent, due date, payment method and the date of the last lawful increase.
Rebuild the deposit record. Deposit amount, date paid, top ups, interest paid and the next interest date.
Write to every tenant. Confirm the tenancy continues, name the estate trustee, give the address for notices, and give new payment and repair contact details.
Set up an estate account for rent, and stop relying on the deceased's personal account.
Call the insurer and confirm in writing that the property stays covered as a tenanted rental while the estate is settled.
Keep utilities and vital services paid in every unit where the landlord supplies them.
Set up repair coverage. Choose a contact for emergencies and line up a trusted plumber, electrician and heating contractor.
Tell the condo corporation or building manager, if the property is a condo unit.
Do not serve any termination notice until you have confirmed the ground, the form, the notice period, any compensation and the right person to sign it.
Decide the plan with the beneficiaries: keep and rent, transfer to a beneficiary, or sell tenanted or vacant under section 49. Record the decision.
Diary the dates. Rent increase windows, deposit interest dates, lease end dates and the 180 day Estate Information Return deadline.
When to hire a property manager
Some heirs live nearby, know the tenants and have time to run the property. Many do not. Consider professional management when:
The estate trustee lives outside the Greater Toronto Area or cannot answer repair calls quickly.
There are several units or several properties, each with its own lease, deposit and interest schedule.
The records are incomplete and the rent roll, deposits and interest history need to be rebuilt and documented.
Beneficiaries disagree about keeping or selling, and the property needs neutral, steady management in the meantime.
A sale or own use plan is coming, and every notice, compensation payment and timeline must be right the first time.
Repairs, maintenance standards or tenant issues are already building, and the estate needs them handled under the Act.
A good manager does not replace the estate's lawyer. We handle the day to day landlord work, while the lawyer handles probate, title and the estate's legal decisions.
Who should book a discovery call, and who should not (yet)
Book a call if you are an estate trustee or heir responsible for a tenanted property in Toronto, North York, Etobicoke, East York or elsewhere in the Greater Toronto Area, and you want rent collection, tenant communication, repairs, deposits and interest handled while the estate is settled, or you plan to keep the property as a rental after the transfer. Discovery call: https://propertymanagmentgta.com/discovery-call-page. Investor questions: Property Management Partners FAQ. Scope of services: investor services. Local pages: Toronto, North York, Etobicoke.
Not yet if the will is being challenged, the beneficiaries are in a legal dispute, or a tenant has already filed an application with the Landlord and Tenant Board. Speak to a lawyer or licensed paralegal first, then come back to us for the ongoing management.
This article is general information for Ontario landlords, estate trustees and heirs, not legal or tax advice. Estate and tenancy rules change. Confirm current requirements with the Government of Ontario and the Landlord and Tenant Board, and speak to a lawyer or licensed paralegal about your situation.
FAQ: inherited rental property and tenants in Ontario
Does a tenancy end when the landlord dies in Ontario?
No. A tenancy in Ontario can end only in accordance with the Residential Tenancies Act, 2006, under section 37(1), and the death of the landlord is not one of the ways it ends. The lease continues on the same terms, and the estate, then the beneficiary or buyer, takes over as landlord.
Who is the landlord after the owner of a rental property dies in Ontario?
The Residential Tenancies Act, 2006 defines landlord to include the owner's heirs, personal representatives and successors in title. While the estate is being settled, the estate trustee acts as landlord. A surviving joint tenant becomes sole owner by survivorship, though title still needs updating. Where the owners were tenants in common, the survivor and the estate trustee are landlords together. A beneficiary becomes the landlord once title is transferred.
Where should tenants pay rent after the landlord dies?
Tenants should keep paying rent when it is due and follow the written instructions from the estate trustee. The estate trustee should send each tenant a dated letter with the new landlord's legal name, the address for service, the payment instructions and a repair contact. Rent paid in good faith to the old owner's account before the tenant was told generally should not be treated as arrears; the estate reconciles those funds and keeps a paper trail.
Can I evict a tenant from a rental property I inherited in Ontario?
Only on a ground set out in the Residential Tenancies Act, 2006, using the correct notice and, if the tenant does not leave, an order of the Landlord and Tenant Board. Inheriting the property is not itself a ground. Common lawful routes are an N12 for own use, an N12 for a purchaser, or a voluntary agreement to end the tenancy.
Can a beneficiary move into an inherited rental unit in Ontario?
A beneficiary can move in with an N12 under section 48 if the landlord is an individual, the beneficiary or a qualifying family member will live there in good faith for at least one year, the notice gives at least 60 days and ends on the last day of a rental period or term, and compensation is paid unless the notice gives at least 120 days. Title is not always strictly required first, but completing the transfer, or getting legal advice, before serving is the safest route. An N12 from the estate trustee for a beneficiary's use is risky, and the person must normally move in within 60 days of the termination date.
Do I have to pay the tenant compensation for an N12 in Ontario?
Usually yes. Section 48.1 requires one month's rent or another acceptable unit. For an own use N12 given on or after September 21, 2026, compensation is not required if the termination date is at least 120 days after the notice and falls on the last day of a rental period or fixed term. A purchaser N12 under section 49 always requires compensation, paid by the seller.
Can the estate sell an inherited rental property with tenants in it?
Yes. The buyer becomes the landlord and takes over the lease, the rent and the last month's rent deposit. If the buyer or a qualifying family member will live in the unit, the seller can give an N12 on the buyer's behalf after an agreement of purchase and sale is signed, but only for a building with no more than three residential units or a condo unit.
What happens to the last month's rent deposit when a landlord dies?
The deposit stays with the tenancy. Section 106(10) of the Residential Tenancies Act, 2006 requires the landlord to apply a deposit paid to a former landlord to the last rent period, and section 106(4) bars a new landlord from asking for a second deposit. Annual interest also continues to fall due at the guideline rate.
Does an estate trustee need probate to manage a rental property in Ontario?
Often yes. Ontario's probate guidance says an estate normally must be probated if the deceased owned real property or assets held by a financial institution, and that a certificate should be obtained before anyone signs an agreement of purchase and sale. The estate's lawyer can confirm what is needed for the property and the rent account.
Can I raise the rent after inheriting a rental property in Ontario?
Not because of the inheritance. The existing rent continues, and any increase must follow the usual rules: at least 90 days' written notice, at least 12 months since the last increase, and the guideline cap for rent controlled units, which is 2.1% for 2026 and 1.9% for 2027 on Ontario's residential rent increases page.
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