Increased Small Claims Court limit means more choices for rental property owners
By David Gargaro
Thanks to new legislation involving increased limits for Small Claims Court cases, Ontario’s rental property owners will have more flexibility, and potentially more power, when seeking unpaid rent or damages through the courts.
Effective October 1, 2025, due to amendments to Ontario Regulation 626/00, the monetary limit for Ontario’s Small Claims Court will increase from $35,000 to $50,000. This change also increases the appeal threshold from $3,500 to $5,000. This means fewer cases will automatically move up to Divisional Court.
Although the increase in the monetary limit does not seem significant, the amendment could have implications for rental property owners and property managers seeking to recover larger debts or damages that would normally take place through the more expensive and less efficient Superior Court process.
“The increased monetary jurisdiction does not change the process or timelines for applying under the LTB or filing orders with the Small Claims Court for enforcement purposes,” said Kristen Ley, Partner, Cohen Highley LLP. “Notably, it does not create or alter any of the specific methods of enforcement such as writs of seizure and sale of land or personal property and garnishments. Currently, the only change is that orders for larger amounts of money can be obtained before the LTB and enforced by the Small Claims Court.”
What this means for rental property owners
Small Claims Court is part of Ontario’s Superior Court of Justice. It is designed to help litigants resolve civil disputes quickly and cost effectively. Small Claims Court handles cases involving contracts, damages or unpaid debts. It also enforces orders from the Landlord and Tenant Board (LTB), such as garnishments and property seizures.
The Residential Tenancies Act (RTA) links the Small Claims Court’s limit to the limit set out for the LTB. Therefore, the monetary limit for the LTB also increases to $50,000. This means rental property owners can pursue larger claims for
unpaid rent, property damage or recovery of abandoned property directly through the Small Claims Court.
“Prior to October 1, 2025, if the landlord had a claim greater than $35,000, which is common especially in instances of higher monthly rent or substantial damage caused to a unit, they would have to choose between reducing their claim to fit within the LTB’s jurisdiction or pursuing their claim in the regular court system,” said Ley. “With the increased jurisdiction, there is a greater likelihood of full recovery in terms of the judgments that can be obtained and enforced from the LTB.”
The new limit provides rental property owners with more choices:
• File larger claims in Small Claims Court without incurring the higher costs of Superior Court
• Seek enforcement of unpaid LTB orders for larger sums
• Access quicker resolutions, as Small Claims Court tends to see faster resolutions than the Superior Court and the LTB
• Choose flexible representation, including paralegals, lawyers or self-representation
New procedures and opportunities
In addition to higher monetary limits, the amendments introduced new trial management rules that will help to make Small Claims Court more efficient through reduced timelines and lower costs. Rental property owners can also amend or transfer claims to take advantage of the new monetary limit.
For example, a rental property with an existing claim can increase the amount sought (up to $50,000) if it takes place at least 30 days before the trial date. It’s even possible to transfer a Superior Court case to Small Claims Court (if all parties agree to the move).
“Landlords need to assess whether judgment debtor tenants (i.e., tenants who have orders for
to collect on,” said Ley. “They may want to dedicate more resources to debt recovery efforts, including working with a firm experienced with enforcement procedures before the Small Claims Court.”
While higher limits might make larger arrears claims possible, rental property owners should not delay filing with the goal of reaching the $50,000 monetary limit. It should be noted that, at the LTB, higher arrears may mean longer payment plans or increased abatement claims pursued to help reduce high arrears.
“Just because the LTB now has the jurisdiction to issue judgments up to $50,000, landlords should not intentionally delay bringing unpaid rent before the LTB,” said Ley. “For claims that are strictly within the Small Claims jurisdiction to begin with, the cost consequences of higher value claims increase, being a percentage of the claim.”
Conclusion
Rental property owners should understand the amended legislation and higher monetary limit mean they now have a more efficient and affordable way to recover larger debts. Rather than being forced to reduce a claim or go through the Superior Court process, they can bring the
