What Are the Rules for a Month-To-Month Lease in Ontario?

Your Month-to-Month Tenancy Agreement

Many tenants and landlords seek flexibility in their housing arrangements. A month-to-month lease often provides this freedom, allowing for shorter-term commitments compared to a fixed-year contract. But this flexibility comes with a unique set of regulations. Understanding what the rules for a month-to-month lease in Ontario is important for a smooth and lawful tenancy. This type of agreement typically begins after an initial fixed-term lease, such as a one-year contract, expires. If you stay in your unit and continue to pay rent without signing a new lease, your tenancy automatically converts to a month-to-month agreement.

This automatic conversion preserves all the original terms of your lease. The rent amount, rules about pets, and maintenance responsibilities all carry over. The only significant change is the duration of the agreement, which now renews each month. This structure protects both parties. Tenants retain their housing security without being locked into a long-term contract. Landlords maintain a tenancy with an established renter. Knowing the specific guidelines for ending the tenancy, increasing rent, and upholding responsibilities ensures both landlords and tenants can act confidently and avoid disputes.

How a Monthly Tenancy Begins

A month-to-month tenancy usually starts automatically. When a fixed-term lease ends, for example, after one year, the tenancy does not simply terminate. If the tenant continues to pay rent and the landlord accepts it, the agreement converts to a monthly tenancy by law. This happens without any new paperwork or signatures. The original lease agreement’s terms all remain valid. This includes the cost of rent, the utility agreements, and any rules regarding the property. The tenancy’s term is the only element that changes.

A landlord cannot require a tenant to sign a new fixed-term lease to remain in the property. They also cannot force a tenant to move out just because the initial lease period is over. The tenancy continues on a monthly basis until either the tenant or the landlord gives proper notice to end it. Even if you never had a written lease, an oral agreement establishes a tenancy. This verbal agreement would also roll into a month-to-month arrangement, governed by the same standard rental laws. This continuity provides stability for tenants and ensures landlords have a consistent rental income.

Click the link to learn more about real estate agents in Orangeville
Related Article: Can a Tenant Change the Locks in Ontario?
Related Article: What Are My Rights as a Tenant in Ontario?

Giving Notice as a Tenant

When a tenant decides to move out of a month-to-month rental, they must provide proper notice. The law requires tenants to give their landlord at least 60 days of written notice. This notice must specify a termination date that is the last day of a rental period. For most people, this is the last day of the month. For instance, if you pay rent on the first of each month and want to move out at the end of August, you must give notice to your landlord on or before June 30th. Giving notice in the middle of a month is not sufficient.

The correct form for this notice is the N9, “Tenant’s Notice to End the Tenancy.” While a simple letter can be legally acceptable, using the official form ensures all necessary information is included. Failing to provide the full 60 days of notice can have financial consequences. A tenant could remain responsible for paying rent for the notice period, even after they have moved out. Before giving notice, tenants should consider their options. If they need to leave early, they could ask the landlord for permission to assign the lease to a new tenant. This process transfers the tenancy and all its responsibilities to someone else.

Landlord’s Process for Termination

Unlike a tenant, a landlord cannot end a month-to-month tenancy for just any reason. They must have a valid legal cause as defined by the law. Simply wanting the tenant to leave or wishing to rent the unit for a higher price are not legal reasons for termination. The process requires the landlord to serve the tenant with an official notice form from the Landlord and Tenant Board, clearly stating the reason for ending the tenancy. The required notice period varies depending on the reason provided.

Common reasons a landlord may end a tenancy include:

• Landlord’s Own Use

  If the landlord, an immediate family member, or a caregiver needs to move into the unit, they can give a 60-day notice using Form N12. In this case, the landlord must pay the tenant compensation equal to one month’s rent.

• Purchaser’s Own Use

  If the property has been sold and the new buyer wants to move in, the landlord can also issue an N12 notice on the purchaser’s behalf. The same 60-day notice and one-month compensation rules apply.

• Major Renovations or Demolition

  For extensive repairs, renovations, or demolition that require the unit to be vacant, a landlord must provide 120 days’ notice using Form N13. Compensation is also required.

Other reasons, such as consistent late rent payments or illegal activities, have different notice forms and shorter notice periods. Regardless of the reason, if a tenant does not move out after receiving a notice, the landlord must apply to the Landlord and Tenant Board for an eviction order. A landlord can never change the locks or physically remove a tenant on their own.

Your Ongoing Rights and Duties

Transitioning to a month-to-month tenancy does not change the fundamental rights and responsibilities of either the landlord or the tenant. All the terms from the original lease agreement continue to be in effect. The landlord’s duty to maintain the property remains the same. This includes performing necessary repairs to vital services like plumbing, heating, and electricity. If something breaks, the tenant should inform the landlord in writing. The landlord must then address the issue in a reasonable timeframe.

Similarly, the tenant’s responsibilities do not diminish. The tenant must continue to pay their rent in full and on time. They are also responsible for keeping their unit reasonably clean and must not cause any undue damage to the property. The rules regarding landlord entry also stay the same. A landlord must provide 24 hours’ written notice before entering a tenant’s unit, unless there is an emergency. This notice must state the reason for entry and specify a time between 8 a.m. and 8 p.m. This balance of duties ensures the property is well-kept and both parties’ privacy and security are respected throughout the tenancy.

Conclusion

A month-to-month lease offers valuable flexibility, but its success hinges on a clear understanding of the rules. Both tenants and landlords benefit when they know their rights and obligations. From the automatic creation of the tenancy to the specific procedures for rent increases and termination, these guidelines create a predictable framework. Tenants can enjoy their homes with the security of knowing they cannot be asked to leave without a valid reason and proper process. Landlords can manage their properties effectively while respecting tenant rights.

Remember that communication is key. Putting important requests and notices in writing creates a clear record and helps prevent misunderstandings. Using the official Landlord and Tenant Board forms is always the best practice. This ensures all legal requirements are met. Whether you are a tenant enjoying the freedom of a monthly lease or a landlord managing a rental property, knowing these rules is your best tool.