When an Ontario landlord needs a tenant out — whether for personal use, a sale, or a renovation — there are two main routes: the N12 notice through the LTB, or a negotiated cash-for-keys agreement. Each has advantages. The right choice depends on the tenant, the timeline, and what you can afford.
How the N12 Route Works
An N12 gives the tenant 60 days notice, requires a genuine intention to occupy the unit, and mandates one month’s compensation. If the tenant does not leave, you file an L2 with the LTB and wait for a hearing. Total timeline from notice to vacant possession in a contested case can be 6 to 18 months.
The Risks of the N12 Route
If the LTB finds the N12 was served in bad faith — meaning the stated occupant did not move in — you can face fines of up to 12 months’ rent. The N12 process also requires strict compliance with notice requirements, service rules, and compensation deadlines.
How Cash for Keys Works
Cash for keys is a negotiated agreement where the landlord pays the tenant a lump sum to vacate by a specific date, typically documented in an N11 (mutual agreement to end tenancy). There is no prescribed amount — it is whatever both parties agree to. Common amounts in Ontario range from $3,000 to $15,000+ depending on the rental rate and situation.
The Advantages of Cash for Keys
When done right, cash for keys can produce vacant possession in 30 to 60 days — far faster than the LTB route. There is no hearing, no LTB backlog, and no risk of a bad faith finding. The main downside is cost, and the risk that the tenant takes the money and then stays anyway if the agreement is not drafted correctly.
Which Route Should You Choose?
If the tenant is cooperative and the timeline matters, cash for keys is often faster and less expensive than a prolonged LTB process when you factor in lost rental income. If the tenant is uncooperative or the cash ask is unreasonable, the N12 route may be necessary. Many landlords do both simultaneously.
What Comes Next
Stonegate advises Ontario landlords on both routes and handles the documentation for either. Book a free call at https://calendly.com/stonegatelegalservices/20min.
▶ Watch: N12 Application Vs Cash for Keys to End Tenancy
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