Tenant in default of payment: Steps to take for an effective response

Dealing with a tenant who is late on rent is part of the reality for landlords in rental property management. Although it can be an uncomfortable situation, it is possible to take effective action while fully respecting the rules set out in the Civil Code of Québec. Here are the steps to follow when a tenant fails to pay rent on time.

Step 1 – Confirm the default of payment

Before taking action, make sure the tenant is actually late. According to Article 1903 C.C.Q., rent is due on the first day of each term (usually the 1st of each month, unless otherwise agreed in Section D of the lease). A delay is only legally considered a default once the due date has passed (for example, if rent is due on the 1st of the month, the tenant is in default starting on the 2nd). It is recommended to wait a short period before initiating further steps and concluding that there is a default in payment.

Step 2 – Communicate with the tenant

Proactive communication is often enough to resolve the situation. Contact your tenant by phone, email, or any other usual method of communication you normally use with them. Be factual and courteous in your interactions. Ask whether it is an oversight, a one-time issue, or a longer-term difficulty. It is recommended to document all your communications.

Step 3 – Send a notice of default and/or a formal notice 

If payment is still not received despite a courteous reminder and the tenant does not respond to your follow-ups, you can first send a notice of default for non-payment of rent. If the situation continues, you may then issue a letter of formal notice. This formal letter must clearly state the amount owed, the deadline for payment, and the consequences of non-payment. This document can be sent by registered mail, by bailiff, or via an electronic registered mail tool like Pronotif. CORPIQ provides sample notices and formal letters to help you with this process.

Step 4 – File an application with the Tribunal administratif du logement (TAL)

If the tenant still does not pay within the timeframe indicated in the formal letter, you can file a claim with the TAL for non-payment of rent. If your objective is to obtain a lease termination, the tenant must have been in default for more than three weeks. In a standard lease where rent is due on the first of the month, this means the application regarding unpaid rent can be filed starting on the 23rd day of the month. Before that, only a recovery of the debt can be pursued through the judgment. Additionally, if the tenant frequently pays rent late (at least three times in the last 12 months), causing you serious prejudice, this can be mentioned in the non-payment application.

At the hearing, it is essential to present your evidence: a copy of the lease and the latest renewal notice if applicable, proof of frequent delays if applicable, records of your communications, bounced checks, any documents related to significant harm caused by frequent delays if applicable, the date the formal letter was sent and proof of receipt, and any other relevant documents depending on your specific case. CORPIQ’s partner law firms can assist and represent you if needed.

Step 5 – Enforce the TAL’s decision

Once you receive a judgment in your favour, it is recommended to try to reach an agreement with your tenant regarding the payment. If no agreement is possible, you will need to call on a bailiff or a collection agency such as L.A. Agence de Recouvrement to enforce the judgment. To fully understand the steps to take after receiving a TAL judgment, we recommend reading our article on the topic.

By following these steps, you protect your rights while acting fairly. Of course, it is always better to prevent such situations in the first place. To do so, maintaining open communication with your tenant is key to being informed of potential issues before they arise and to work toward possible compromises. You can also set up pre-authorized payments through the Proprio Expert property management platform. This helps prevent tenant oversights and ensures payments are made on fixed dates. If you have any questions on the topic, CORPIQ members can contact our advisory services.

Still have questions about payment defaults? Register for our virtual event on February 17, 2026, at 7:00 p.m. Registration is free for CORPIQ members.