Can a landlord charge a late rent fee in Ontario?
No. In Ontario a residential landlord cannot charge a late-payment fee or penalty. Any 'late fee' clause in a residential lease is unenforceable under the Residential Tenancies Act. The landlord's only remedy for late rent is to serve an N4 notice and, if unpaid, apply to the LTB.
Which provinces allow late rent fees?
Rules vary. British Columbia allows a late fee only if it is in the tenancy agreement and capped at $25 per late payment. Alberta permits a reasonable fee set out in the lease. Ontario prohibits them entirely. Always check your province's Residential Tenancies Act and the specific lease wording.
What can a landlord do instead of charging a late fee?
The landlord's real remedy is a notice of termination for non-payment (Ontario's N4, BC's 10 Day Notice, etc.). If the tenant does not pay within the notice period, the landlord applies to the provincial tribunal for an eviction order and a money order for the arrears.
Is interest the same as a late fee?
No. Interest on arrears (which a tribunal may award) is different from a contractual late-payment penalty (which Ontario prohibits). A landlord cannot dress up a prohibited penalty as 'interest' in a residential lease. Keep the two concepts separate when calculating what a tenant owes.