Can my landlord charge interest or late fees?

Landlords are not allowed to charge on unpaid rent. They are not allowed to charge late fees either. These rules apply all the time, not just during the COVID-19 emergency.

But even without interest or late fees, you could still end up owing more than just the back rent. For example, if your rent cheque “bounced” or your payment didn’t go through because there wasn’t enough money to cover it, you might also have to pay the fees charged by the landlord’s bank. The landlord can also charge you up to $20 for “administrative” costs.

And if your landlord files an application for rent owing with the (LTB), you’ll probably have to pay back the filing fee your landlord paid to the LTB.  The filing fee is $201, or $186 if your landlord filed electronically.

If your landlord sues you in small claims court for money you owe or if they get an from the LTB, the order will usually say that you’ll be charged interest until you pay the money.

Landlords are allowed to offer discounts for paying your rent on time. This type of discount means that you have to pay your full undiscounted rent if you pay late. If your rental agreement includes any discounts, make sure you understand how much rent you will really be paying.

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