Tenant left unit damaged — small claims, LTB L10, or insurance?

Three potential paths, often used in combination:

**Path 1 — Last month's rent deposit.** You can apply the LMR deposit to the LAST month's rent only — NOT to damage, NOT to arrears mid-tenancy. So the LMR doesn't help with damage recovery (despite a common misconception).

**Path 2 — LTB L10 application.** Compensation for damage. Filed at the LTB. Limit is currently $35,000.
- Pro: lower filing fee, LTB familiar with rental disputes
- Con: hearing wait times are long; harder to enforce against tenants who've left the province

**Path 3 — Small Claims Court.** Up to $35,000 jurisdictionally.
- Pro: independent court with broader enforcement powers (garnishment, lien on assets)
- Con: higher filing fee, longer process, more procedural

**Practical sequence for $5,000 damage:**

1. Document everything immediately: photos, contractor quotes, invoices after repair.
2. Send a formal demand letter to the tenant's last known address AND to any forwarding address you have.
3. File L10 with the LTB within 1 year of the tenant leaving. Cheaper, faster.
4. If you get an L10 order and the tenant doesn't pay: file the order with Small Claims Court for enforcement (garnishment, etc.).

**Insurance:** if the damage is from a single event (fire, flood, theft), file with your landlord insurance. Insurance won't cover normal damage or progressive deterioration.

VirtualPM Legal Shield includes L10 prep + filing at the $199/month tier. Book a free 15-minute consult.