Blog > A First-Time Landlordâ€s Guide to Renting Out a Markham Home Legally: What Changed in 2026
A First-Time Landlordâ€s Guide to Renting Out a Markham Home Legally: What Changed in 2026
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Michael John Lau is a top real estate agent in Markham and a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region. He helps owners who are renting out a home for the first time set up the tenancy properly from day one.
What do first time landlords in Markham need to know about the 2026 Ontario rental rule changes
Ontario changed several landlord rules in 2026. Since September 21, 2026, the N4 notice for unpaid rent gives tenants 7 days instead of 14. A landlord who gives at least 120 days’ notice on an N12 for their own or a family member’s use no longer owes one month’s compensation, although this does not apply to N12s served for a purchaser. Updated LTB forms are required, and older versions are not accepted after November 30, 2026. The rent increase guideline is 2.1% for 2026 and 1.9% for 2027. In Markham, a house with a second unit must be registered with the City.
What Changed on September 21, 2026
| Rule | What changed |
|---|---|
| N4, unpaid rent | Notice period cut from 14 days to 7 days for notices given on or after September 21 |
| Persistent late payment | Now defined as rent paid more than 7 days late at least 3 times in 6 months |
| N12, landlord’s own use | No compensation owed if the landlord gives at least 120 days’ notice. Does not apply to purchaser N12s |
| Moving in after an N12 | The landlord or family member normally needs to move in within 60 days, or bad faith is presumed if the tenant applies |
| Arrears hearings | For L1 applications filed on or after September 21, a tenant who wants to raise other issues must pay 50% of the claimed arrears at least 7 days before the hearing |
| LTB forms | N5, N6, N8, N12, N13, L1, L2, L9, L10 and T5 updated; old versions not accepted after November 30, 2026 |
Source: Tribunals Ontario, LTB Operational Update, September 21, 2026.
Changes That Started July 1, 2026
- Review deadline: the time to ask the LTB to review a decision dropped from 30 days to 15 days.
- Air conditioning: where the landlord provides no cooling, tenants may install a window or portable unit. If the landlord pays for electricity, a seasonal charge capped at the actual or estimated cost can be added.
Rent Increases in 2026 and 2027
The guideline is 2.1% for 2026 and 1.9% for 2027 for units it covers. Increases need 90 days’ written notice and at least 12 months between increases. Units first occupied for residential purposes after November 15, 2018 are generally exempt from the guideline, but the notice and 12-month rules still apply. Set the starting rent carefully, because it becomes the base for every future increase.
Renting out your Markham home? Call Michael John Lau, REALTOR®, at (416) 700-0286 to price the rent from recent leases nearby.
Plan for LTB Timelines
Even with the 2026 changes, disputes take time. Tribunals Ontario’s most recent published figures, from late 2024, put L1 and L9 hearings at about three months and most other applications at five to seven months. An unofficial 2026 estimate from LawyerInfo.ca suggests four to six months for L1 applications. Build a cash reserve that could cover several months of carrying costs if rent stops.
Markham-Specific Rules
- Two-unit houses must be registered with the City under By-law 2018-57, with fire and building inspections of both units. The City lists an initial fire inspection fee of $260 and a registration fee of $246.
- New suites need a building permit and must meet the Ontario Building Code.
- Short stays: Markham generally does not allow a whole home to be rented for less than 30 days.
Comparing a basement suite with a garden suite? See basement apartment vs. garden suite.
A First-Year Roadmap
- Before listing: tell your lender and insurer, register any second unit, and set rent from recent leases nearby.
- Screening: apply the same fair criteria to every applicant. See how to screen tenants under Ontario law.
- Signing: use Ontario’s Standard Form of Lease, collect only a last month’s rent deposit and an optional refundable key deposit, and document the unit’s condition.
- During the year: give 24 hours’ written notice before most entries, keep records of rent and repairs, and use current LTB forms.
- Tax time: report rental income and review the tax effect of turning your home into a rental. See turning your home into a rental.
The Bottom Line
The 2026 changes give landlords faster notice periods and clearer rules, but they do not replace careful screening, good records and a well-maintained home. Ultimately, the decision is yours. The goal is to make sure you have all the information before you hand over the keys.
Next Steps
- Real estate investing in Markham: plan a rental that fits your goals.
- Free home evaluation: know your equity before you rent or sell.
- Contact Michael John Lau: questions about leasing your home.
Frequently Asked Questions
How long is an N4 notice in Ontario now?
For N4 notices given on or after September 21, 2026, the tenant has 7 days instead of 14 to pay the rent owed.
Do I still pay one month’s compensation on an N12?
Not if you give at least 120 days’ notice for your own or a family member’s use. The change does not apply to N12s served for a purchaser.
What is the rent increase guideline for 2027?
1.9%, for units covered by the guideline. The 2026 guideline is 2.1%.
Can I still use old LTB forms?
Updated versions of several forms took effect September 21, 2026, and older versions are not accepted after November 30, 2026.
Do I need to register a basement apartment in Markham?
Yes. Markham requires two-unit houses to be registered, with fire and building inspections of both units.
How long does the LTB take?
Tribunals Ontario’s late-2024 figures put L1 hearings at about three months. An unofficial 2026 estimate suggests four to six months.
Work With Michael John Lau in Markham
Michael John Lau helps Markham owners decide whether to rent or sell, price the rent from recent leases, and prepare a home for the right tenant. He works alongside your lawyer and accountant on the legal and tax side.
📞 Contact Michael John Lau, REALTOR®
🌐 www.callmikelau.com
Thinking about renting out your Markham home?
Michael John Lau can help you compare renting with selling and set a rent based on recent leases nearby.
Michael John Lau, REALTOR® · Markham, Ontario · (416) 700-0286
Disclaimer. Michael John Lau is a licensed REALTOR® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Rule changes are from Tribunals Ontario’s LTB Operational Update (September 21, 2026) and ONPHA’s summary of Bills 60 and 97 (April 30, 2026). Rent guidelines are from Ontario.ca (June 23, 2026). LTB timelines are from Tribunals Ontario (November 27, 2024) and LawyerInfo.ca (March 26, 2026). Markham registration details are from the City of Markham. Michael John Lau is not a lawyer, accountant, tax advisor or mortgage professional. This article is general information, not legal, tax or financial advice. Speak with a qualified professional about your own situation.