Landlord Rent Arrears Over $50,000
An Ontario landlord's guide to recovering large arrears at the Superior Court
If your tenant owes more than $50,000 — the new Landlord and Tenant Board (LTB) monetary cap that took effect on October 1, 2025 (O.Reg 42/25) — the Ontario Superior Court of Justice is the correct forum. At the Superior Court, you can recover the full arrears, claim property damage, pursue guarantors, and seek possession of the premises in a single proceeding. For clear-cut arrears cases, a summary judgment motion can produce a judgment in months rather than years.
This guide explains the limits of the LTB for large arrears, when to move to the Superior Court, two recent Ontario decisions that shape the strategy, and the step-by-step procedure our firm uses to recover large arrears efficiently.
1. Why the LTB Cannot Solve Large Arrears Problems
The Landlord and Tenant Board is the default forum for most residential tenancy disputes in Ontario. For straightforward, smaller-value disputes, it works. For large arrears, it has four structural limitations that landlords need to understand:
$50,000 Monetary Cap
The LTB cannot award more than $50,000 (raised from $35,000 by O.Reg 42/25, effective October 1, 2025). A long-standing non-payment situation — especially in commercial or high-rent residential properties — can easily exceed this cap.
Chronic Scheduling Delays
LTB hearing wait times have stretched into many months and, in some matters, well over a year. While the file sits in queue, the arrears continue to grow.
Enforcement Still Depends on the Sheriff
Even after you obtain an LTB order, enforcement — including eviction — goes through the Court Enforcement Office (Sheriff). Sheriff scheduling is itself a separate bottleneck.
Narrow Jurisdiction
The LTB can only deal with matters under the Residential Tenancies Act. Claims against guarantors, property damage above the cap, and certain commercial-style disputes are not within its authority.
2. The Superior Court: The Right Forum for Large Arrears
When arrears exceed the LTB's cap, or when you need relief the LTB cannot grant, the Ontario Superior Court of Justice is the correct forum.
Which Forum Based on Total Claim
Different amounts call for different venues and different strategies.
Under $50,000
→ LTB or Small Claims Court
LTB for residential tenancies; Small Claims Court for straightforward monetary claims
$50,000 – $100,000
→ Superior Court of Justice
Consider a summary judgment motion to compress the timeline
Over $100,000
→ Superior Court of Justice
Pursue summary judgment first; combine damages, possession, and guarantor claims
Note: Even when rent arrears alone are under $50,000, bundled claims (serious property damage, guarantor recovery, loss of future rent) can push the total above the cap — making the Superior Court the better forum.
What the Superior Court Can Do That the LTB Cannot
No Monetary Cap
Whether the arrears are $60,000 or $600,000, the Superior Court has unlimited monetary jurisdiction and can award the full amount proven.
Broader Remedies
The court can grant injunctions, award property damage, hold guarantors liable, and award possession — all in one proceeding.
Summary Judgment
Where the facts are clear and the arrears are not genuinely disputed, a landlord can move for summary judgment under Rule 20 of the Rules of Civil Procedure. The court decides on the paper record and short oral argument — no full trial required. In the large arrears cases we have handled, summary judgment has proven to be the most efficient path.
3. Two Ontario Decisions That Shape Landlord Strategy
Ji Zhou v. Hashem Nia, 2023 ONSC 5466
The landlord's right to leave the LTB and sue at the Superior Court when arrears exceed the cap.
Background: The landlord faced mounting rent arrears that exceeded the LTB's then-$35,000 cap. The landlord had initially filed at the LTB, but the arrears kept growing and the LTB could not fully remedy the situation.
The tenant's argument: That by filing at the LTB first, the landlord had made a binding "election" of forum and could no longer sue at the Superior Court.
The court's decision: The Superior Court rejected the tenant's argument, calling it "form over substance." When arrears exceed the LTB's jurisdiction, a landlord has the right to withdraw the LTB application and commence a Superior Court action. Summary judgment was granted in favour of the landlord for the full arrears.
Key takeaway: Filing at the LTB does not lock you out of the Superior Court. If arrears later grow beyond the cap, or bundled claims take the total over the threshold, you can move to the Superior Court.
Cao v. Iskander, 2025 ONSC 176
Summary judgment used to compress the timeline in a large arrears case.
Background: The landlord brought an action at the Superior Court for substantial rent arrears and sought summary judgment, arguing there was no genuine issue requiring a trial.
The court's decision: The court granted summary judgment. Where the lease terms are clear, the arrears can be calculated on the paper record, and no meaningful defence has been raised, summary judgment is the appropriate procedural path.
Key takeaway: Large arrears cases often meet the test for summary judgment. Used well, it avoids the expense and delay of a full trial.
4. Recovering Large Arrears: The Superior Court Procedure
Assess the claim and preserve evidence
Gather the lease agreement, a month-by-month arrears calculation, the full communication record with the tenant (emails, texts), photographs of any property damage, and proof of payments received. Strong evidence from day one shortens every later step.
Pick the right forum
Total claim under $50,000 — LTB or Small Claims Court. Between $50,000 and $100,000 — Superior Court with a summary judgment strategy. Over $100,000 — Superior Court; summary judgment is usually the most efficient path.
Send a demand letter
Before issuing a claim, your lawyer typically sends a demand letter giving the tenant a fixed window (often 10–15 days) to pay. The letter formalizes the landlord's position, gives the tenant one last voluntary opportunity, and supports a later application for costs.
Statement of Claim and service
If the demand is ignored, your lawyer drafts and issues a Statement of Claim at the Superior Court, pleading rent arrears, damages, and any related remedies (possession, guarantor liability). The claim must then be served on the tenant under the Rules.
Summary judgment motion
Where the arrears are not genuinely disputed, the landlord can bring a summary judgment motion under Rule 20. The motion is decided on affidavit evidence and short oral argument. In our experience, this is the single biggest lever for resolving large arrears efficiently.
Enforcement
Once judgment is entered, enforcement tools include wage garnishment, writs of seizure and sale, bank account garnishment, and registration of the judgment against real property. A Superior Court judgment is valid for 20 years and is renewable.
5. Practical Pointers for Landlords
- 1
Act early. Every month of delay is another month of accrued rent the tenant may not have the means to repay. Starting the legal process early preserves leverage and may prompt a payment plan or settlement.
- 2
Keep a clean paper trail. Lease agreements, rent ledgers, notices, and communications are the foundation of a summary judgment motion. Avoid informal side-agreements that undermine your written terms.
- 3
Consider guarantor liability at the outset. If the lease has a guarantor, name the guarantor as a defendant from day one — do not leave it for later.
- 4
If you also want possession, say so. The Superior Court can order both arrears and possession in a single proceeding; asking for possession is a strategic decision to make at pleading stage.
- 5
Mind the limitation period. The basic Ontario limitation period is two years from when the cause of action was discovered. For an ongoing arrears situation, each missed month is generally its own cause of action — but older months can fall out of reach.
Frequently Asked Questions
How much must the arrears be before I should go to Superior Court?
As of October 1, 2025, the Landlord and Tenant Board (LTB) and Small Claims Court share a $50,000 monetary jurisdiction cap (O.Reg 42/25). If your rent arrears, together with other claims like property damage, exceed that figure, the Ontario Superior Court of Justice is the correct forum.
I already filed at the LTB — can I switch to the Superior Court?
Yes. In Ji Zhou v. Hashem Nia, 2023 ONSC 5466, the Superior Court confirmed that a landlord may withdraw from the LTB and commence proceedings at Superior Court when the arrears exceed the LTB's jurisdiction. Filing at the LTB first does not permanently lock you into that forum.
What if the tenant has no assets — is it still worth suing?
This requires a case-specific assessment. A Superior Court judgment is valid for 20 years (and can be renewed). If the tenant later acquires income, real property, or other assets, the judgment remains enforceable. The judgment itself can also prompt settlement that would not have happened otherwise.
Can I recover possession of the property in the same Superior Court proceeding?
Yes. At the Superior Court, you can pursue rent arrears, damages, and possession of the premises in a single proceeding — without running parallel processes at the LTB and a damages court.
How fast can I get a judgment for unpaid rent at the Superior Court?
For clear-cut rent arrears with no genuine issue for trial, a summary judgment motion can resolve the matter in months rather than years. Our firm has used this tool successfully in large arrears cases where the facts and the lease obligations are not in dispute.
About the Author
Calvin Zhang
Commercial Litigation Lawyer · Starkman & Zhang Lawyers
Represents Ontario landlords recovering large rent arrears at the Superior Court — including successful use of summary judgment and the post-LTB strategy confirmed in Ji Zhou v. Hashem Nia, 2023 ONSC 5466.
Facing Large Rent Arrears?
Our firm has recovered large rent arrears for Ontario landlords at the Superior Court — including through summary judgment. If your tenant owes more than the LTB can award, the Superior Court is the right forum, and timing matters.
This article is for information only and is not legal advice.
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