N12 compensation from unpaid rent- mixed answers! Anyone with actual LTB experience?
I have an N12 filed with L2 hearing date in June. The termination date is July 31 (hearing is before termination date). Tenant is late on June rent, don’t think he will pay- filed a N4 already. The tenant has not agreed to use June rent as compensation. Done a bunch of research on using unpaid rent unilaterally as LL through letting tenant know in writing that June is being used as compensation. There are cases where adjudicators say it’s okay to do it but others say you can’t use rent arrears for N12 compensation. That’s also the point of view of the Land lord Help center when I asked them. My worry is I will pay the 1 month compensation will also be out the unpaid rent for June and even if I pursue it through N4/L1, it’s a bit of a headache. Even if I win the L1, I don’t think tenant will pay (his credit isn’t great and I don’t think he will care if I pursue through collections or not sure if LTB can ensure tenant pays if I win the L1)
Posted Jun 8, 2026, 12:29 AM UTC