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
unpaid rent, property damage or recovery of abandoned property directly through the Small Claims Court.
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.
“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 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
30 | October 2025
The new limit provides rental property owners with more choices: