A properly documented property inspection is your best defence against disputes over damage deposits and repair costs. In Ontario, landlords cannot charge tenants for normal wear and tear — but they can pursue compensation for actual damage. The key is documentation done right, at both ends of a tenancy.

Why Inspections Matter Under Ontario Law

Ontario's RTA does not require move-in inspections, but they are strongly recommended as best practice. Without a signed move-in condition report, it becomes very difficult to prove what the unit looked like before the tenant moved in — and the LTB will generally side with the tenant in the absence of clear evidence. A thorough inspection report with photographs and the tenant's signature creates a baseline that protects both parties.

At move-out, the condition report allows you to compare the unit's state against the move-in baseline, distinguishing between normal wear and tear (which you cannot charge for) and actual damage (which you can pursue through a T1/L1 application to the LTB).

Move-In Inspection: What to Document

Conduct the move-in inspection on or before the tenant's first day. Walk through every room with the tenant present and document the condition of each item. Key areas to cover:

• Walls and ceilings: Note any existing scuffs, holes, stains, or water damage
• Floors: Document scratches, stains, worn areas, or damaged tiles
• Doors and windows: Check locks, seals, screens, and hardware functionality
• Kitchen appliances: Test stove, refrigerator, dishwasher; note any cosmetic or functional defects
• Bathroom fixtures: Inspect caulking, grout, toilet function, sink and tub condition
• Light fixtures and outlets: Test all switches and note any non-functional fixtures
• Smoke and CO detectors: Test all units and document their locations
• Exterior areas (if applicable): Balcony, parking spot, storage locker

Take dated photographs or video of every room. Have the tenant sign the report. Provide them a copy. Store the original securely.

Mid-Tenancy Inspections

Ontario landlords may enter a unit for inspection with at least 24 hours' written notice between 8 a.m. and 8 p.m. Many landlords conduct an annual inspection to identify maintenance issues early — before they become expensive problems. Mid-tenancy inspections can catch unreported leaks, HVAC filter issues, pest activity, or safety hazards before they escalate.

Document these inspections as well. If you identify concerns, put your observations in writing and keep a copy. If the tenant is causing damage, a mid-tenancy inspection report provides documented evidence for any future LTB proceedings.

Move-Out Inspection: Protecting Your Investment

When a tenant gives notice to vacate, schedule the move-out inspection for the last day of the tenancy or as close to it as possible — ideally with the tenant present. Compare conditions room by room against the move-in report. Photograph every area of concern with the same angles as your move-in photos for clear comparison.

Normal wear and tear — small nail holes, minor carpet wear in traffic areas, faded paint — cannot be charged to the tenant. Damage that goes beyond normal use — large holes in walls, stained carpets, broken fixtures, unauthorized modifications — may be recoverable. Document the cost of repairs with contractor quotes or invoices.

Handling Damage Claims After Move-Out

If you need to pursue a tenant for damage costs beyond their last month's rent deposit, you must file an L1/L2 or L10 application with the LTB within one year. The LTB will consider your inspection reports, photographs, contractor invoices, and any correspondence with the tenant. Strong documentation wins these cases; poor documentation does not.

Sending the tenant a written summary of damages with supporting documentation shortly after move-out — before filing any application — sometimes results in voluntary payment and avoids a hearing entirely.

Frequently Asked Questions

What counts as normal wear and tear?

Small nail holes from hanging pictures, minor carpet wear, faded paint from sunlight, and small scuffs on walls are generally considered normal wear and tear. Large holes, pet damage, significant staining, and broken fixtures are generally considered damage.

Can I keep the last month's rent for damage?

Under Ontario law, the last month's rent deposit can only be applied to the final month of rent — not to damages. Damage claims must be pursued separately through the LTB.

Does the tenant have to be present for the inspection?

There is no legal requirement for the tenant to attend, but having them present and getting their signature on the report is the strongest form of evidence.