Who pays when it comes to damage from renters?

By: Sandra MacGregor on December 22, 2025

This is an update from a previous article.

Key takeaways:

Tenants are responsible for repairing or covering the costs of any damage they or their guests cause beyond normal wear and tear, while landlords handle regular maintenance and wear.
Tenant insurance can protect renters from liability for accidental damage and cover personal belongings, while landlord insurance typically covers the building and fixtures but excludes tenant-caused damage.
Clear communication, thorough documentation, and regular inspections can help landlords and tenants prevent disputes and maintain the property in good condition.

This article has been update from a previous version.

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.

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

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

Understanding property damage

When discussing damage, it’s important to differentiate between normal wear and tear and actual damage.

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.

How does the legal framework work in Canada?

In Canada there are no specific federal laws that govern rental properties. Rather, each province and territory have its own legal framework that governs the 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.

Do I need tenant insurance as a renter?

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.

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.

“A tenants’ insurance policy doesn’t provide coverage for the building, or any detached private structures owned by the landlord,” explains Jeff Logan, sales operations and technology manager at Mitch Insurance. “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 or to the existing policy, available with most insurers.

Do I need home insurance as a landlord?

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. Whereas a tenant insurance policy only covers the tenant’s belongings and liability.

“Landlords should be aware that their policies typically do not cover damage caused by tenants or unpaid rent,” adds Logan.

Vacancies can be problematic for landlord insurance. 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.

Who is responsible for damages in the unit?

Taking responsibility can feel like a game of tug of war. Here’s an overview of who is responsible for what damage in the home.

Appliances and fixed features

The landlord handles repairs for normal wear and tear, like broken dishwashers or damaged countertops. If the damage is due to tenant negligence, the tenant is responsible for repairs.

Exterior damage

Tenants are responsible for any negligent damage they cause to the landlord’s property, even if accidental or due to external factors. Anything beyond normal wear and tear is the tenant’s responsibility.

Damage from tenant’s guests or subletters

Tenants are responsible for damage caused by negligence, accidents, or their guests and subletters. If the damage goes beyond normal wear and tear, tenants must cover repair costs.

It’s wise for landlords and tenants to check local tenancy laws or consult a lawyer for specific responsibilities regarding any type of damage.

Resolving disputes between landlord and tenant

When property damage occurs, clear communication between tenants and landlords is essential. Both parties should document the damage with photos and written descriptions. (It’s wise for tenants and landlords to take photos of a rental before it’s occupied so you can have proof as to 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.

Taking preventative measures

Both tenants and landlords can take proactive steps to prevent property damage and ensure a smooth rental experience. Here are some detailed measures for each:

Tenants can minimize risk by:

Regular cleaning and maintenance

Keep the property clean to avoid issues like mold, pests, and general wear and tear. Also, regularly check and replace filters in HVAC systems to ensure they function efficiently.

Proper use of appliances and fixtures

Follow the manufacturer’s instructions for all appliances to prevent damage. Alongside, avoid overloading electrical outlets to reduce the risk of fires.

Immediate reporting of issues

Report any leaks, electrical problems, or structural issues to the landlord as soon as they are noticed. Use written communication to document the issues reported.

Landlords can minimize risk by:

Pre-move-In property condition

Ensure the property is thoroughly inspected and any necessary repairs are completed before the tenant moves in. Provide tenants with a move-in checklist to document the property’s condition.

Regular property inspections

Schedule periodic inspections (e.g., quarterly or bi-annually) to catch and address issues early. Respect tenants’ privacy by providing proper notice before inspections, as required by Canadian law.

Clear lease agreements

Draft comprehensive lease agreements that clearly outline tenant responsibilities regarding maintenance and property care. Consider having a lawyer review the lease to ensure it complies with provincial regulations and protects both parties.

Prompt response to maintenance requests

Address maintenance requests quickly to prevent minor issues from becoming major problems. Maintain a list of trusted contractors and service providers for quick repairs.

By following these guidelines, both tenants and landlords in Canada can help maintain the property in good condition, reduce the risk of damage, and foster a positive rental relationship.