Who pays when it comes to damage from renters?

Updated by Arshi Hossain on August 7, 2026 | Originally written by Sandra MacGregor on December 22, 2025  

In most cases, tenants are responsible for repairing or paying for any damage to a home they or their guests cause beyond normal wear and tear. Landlords, meanwhile, handle repairs related to regular maintenance and everyday wear.  

Rental properties can be a great source of steady income, but they can also turn into a nightmare. Property damage is one of the most common issues landlords and tenants face in Canada, and disputes can get messy when problems escalate.  

Here’s what counts as property damage, the legal rules around it, and the responsibilities on both sides. 

What is the difference between property damage versus normal wear and tear?

Normal wear and tear results from regular, everyday use and are not considered property damage. It’s essentially “harm” that would have occurred from even the most careful tenant. For example, minor scuffs on walls or slightly worn carpets.    

In contrast, property damage is more significant and often results from negligence, accidents, or intentional acts. It would include things like holes in the walls and pet-stains on flooring.   

What is the legal framework in Canada on rental property responsibilities?

In Canada there are no specific federal laws that govern rental properties. Rather, each province and territory has its own legal framework that governs behavior and duties of tenants and landlords.    

For example, the Residential Tenancies Act, 2006 (RTA) in Ontario outlines landlord and tenant responsibilities. Landlords must keep the property in good repair and habitable, including maintaining cleanliness and safety.    

Tenants, in turn, are responsible for keeping their unit clean and repairing any undue damage they or their guests cause to the rental property.   

Read more: What recourse does a landlord have if a tenant uses their home for illegal activity?  

Do I need tenant insurance as a renter?

While not mandatory, tenant insurance will usually protect your personal belongings in case of theft, fire, or other damage. It also gives you liability coverage if you unintentionally damage your rental unit or if someone is injured while visiting your home.    

Tenants have a general obligation to maintain the rental property and prevent damage. They are liable for any damage caused by their negligence or even by accidents.    

“A tenants’ insurance policy doesn’t provide coverage for the building, or any detached private structures owned by the landlord,” explains Jeff Logan, director of Windsor Essex County Insurance Brokers Association (WECIBA). “However, it does include coverage for tenant improvements, such as light fixtures, upgraded paint, flooring, and more.”   

Personal liability coverage protects against damages caused by tenant negligence. For example, if a bathtub is left running and overflows, you can file a claim for damages.    

Logan explains that voluntary property damage coverage can be a saving grace if there comes a time for tenants to pay for some of the damage they cause, up to the policy limit.    

A common exclusion in a tenant’s insurance policy is damage caused by vermin or pests. Water damage and sewer backup are also typically excluded as well but can be purchased as an endorsement or add-on to the existing policy, available with most insurers.   

Related: Are you being asked to pay for tenant insurance? Here’s what to do 

Do I need home insurance as a landlord?   

Yes, while landlord home insurance isn't legally required in most cases, it's strongly recommended.  

Landlords are responsible for maintaining the overall condition of the rental property and addressing normal wear and tear. They must keep appliances, electrical systems, plumbing, heating, and structural components in good working order.   

Home insurance for landlords typically covers the building itself and any provided appliances or fixtures; basically, anything owned by the landlord. A tenant insurance policy only covers the tenant’s belongings and liability.   

Vacancies can also affect coverage. “Landlords should be aware that their policies typically do not cover damage caused by tenants or unpaid rent,” says Logan. He says that landlords must inform their insurer if a property becomes vacant, as many policies exclude coverage for water damage, theft, or malicious acts during vacancies. If a vacancy exceeds 30 days without insurer permission, all coverage may be voided. 

Learn more: Know your rights: 6 things landlords can’t stop you from doing 

How to resolve disputes between landlord and tenant  

When property damage occurs, clear communication between tenants and landlords is essential. Both parties should document damage with photos and written descriptions. (Tenants and landlords should take photos of a rental before it’s occupied as proof of the original state of the property).   

If there is a dispute over who is responsible for damage and you can’t work it out amicably, tenants and landlords can seek mediation through their provincial or territorial landlord-tenant board, tribunal, or pursue legal action in court.   

Related: What are the factors that affect tenant insurance? 

How to prevent rental property damage: Tips for tenants and landlords 

Preventing property damage is a shared responsibility of tenants and property owners. By taking proactive steps, both renters and landlords can reduce maintenance issues, avoid costly repairs, and create a better rental experience:  

Source: Canada Mortgage and Housing Corporation (CMHC), Tribunals Ontario, Health Canada

Whether you're a tenant or a landlord, taking preventative measures can reduce the risk of property damage, lower repair costs, and help maintain a positive landlord-tenant relationship. Regular maintenance, clear communication, and prompt attention to issues can go a long way toward protecting a rental property and avoiding unnecessary disputes.  

Read next:  3 things you should always tell your landlord and insurance company