Lease Renewal in Ontario: A Complete Landlord Guide

When a fixed-term lease ends in Ontario, a lot of landlords assume they need to sign a new one or ask the tenant to leave. Neither assumption is correct — and acting on either of them without understanding the rules can land you in front of the Landlord and Tenant Board.

The truth is that Ontario's lease renewal process is largely automatic, and the law strongly favours continuity of tenancy. That's not a bad thing once you understand how it works. Here's everything you need to know as an Ontario landlord.

What Actually Happens When a Lease Expires in Ontario

Under the Residential Tenancies Act (RTA), a fixed-term tenancy does not simply end when the lease term runs out. Instead, it automatically converts to a month-to-month tenancy on the same terms as the original lease.

That means if your tenant signed a one-year lease in June 2024, and that lease expires in June 2025 without either party doing anything, the tenancy continues month-to-month. The tenant keeps paying the same rent. The same rules apply. Nothing needs to be signed.

This is called a statutory periodic tenancy, and it's the default outcome for virtually every residential tenancy in Ontario. You cannot force a tenant to leave simply because their fixed-term lease has ended. Tenants have the right to stay indefinitely until they choose to leave or you have valid legal grounds to end the tenancy.

Your Three Options at Lease Renewal Time

When a fixed-term lease is approaching its end date, you have three realistic paths:

1. Do Nothing — Let It Convert to Month-to-Month

This is the most common outcome, and for many landlords, it's perfectly fine. The tenancy continues on the same terms. You can still apply a rent increase (following proper notice rules), and the tenant can still give 60 days' written notice to leave at any time.

The downside is flexibility. If you want to plan for renovations, sell the property, or prefer the certainty of a set term, month-to-month gives you less control over timing.

2. Offer a New Fixed-Term Lease

You can offer your tenant a new one-year (or other term) lease at renewal time. This gives both parties certainty — you know the tenant is committed for another year, and the tenant knows their home is secure.

A few important points here:

• The tenant does not have to sign a new lease. If they decline, the tenancy simply converts to month-to-month. You cannot evict a tenant or threaten non-renewal because they won't sign a new fixed-term agreement.
• You cannot use renewal as an opportunity to add new terms that restrict tenant rights. Any new lease must comply with the RTA. Clauses that waive tenant rights — no guests, no cooking smells, mandatory professional cleaning — are void even if the tenant signs.
• If you're increasing rent, the new lease amount must comply with rent increase rules. More on this below.

If you want to offer a new fixed-term lease, use the Ontario Standard Lease form. Our guide to the Ontario Standard Lease covers what every section means and what you can and can't customize.

3. End the Tenancy — But Only With Valid Legal Grounds

You cannot end a tenancy simply because the fixed term has run out. To end a tenancy in Ontario, you need grounds recognized under the RTA. Common grounds include:

• The tenant hasn't paid rent (N4 notice)
• You or a close family member need the unit for personal use (N12 notice)
• You're doing major renovations requiring vacant possession (N13 notice)
• The tenant has been persistently late with rent (N8 notice)

The lease end date does not, on its own, give you the right to evict. Landlords who serve notice to vacate at lease end without a valid legal reason are violating the RTA and can face penalties at the LTB.

If you need to end a tenancy, our guide on how long eviction takes in Ontario gives you a realistic picture of the timeline.

Rent Increases at Renewal

Many landlords think of lease renewal as the natural time to raise the rent. That's understandable, but the rules don't tie rent increases to lease renewals — they follow their own separate process.

Here's what you need to know:

You must give 90 days' written notice before a rent increase takes effect. The proper form is the N1 (Notice of Rent Increase), though a formal letter with the required information also works. The increase must be effective on the first day of a rental period.

Rent increases are capped by the annual rent increase guideline. For most tenancies, the amount you can raise rent is limited by Ontario's guideline, which is set each year based on the Ontario Consumer Price Index. For 2025, the guideline is 2.5%. For 2026, check the Ontario government's current guideline before issuing any notice.

Units first occupied for residential purposes on or after November 15, 2018, are exempt from rent increase caps. If your property qualifies as a newer unit under this rule, you can increase rent beyond the guideline — but you still need to give 90 days' notice.

You can only raise the rent once every 12 months, regardless of whether the tenancy is fixed-term or month-to-month.

One common mistake: landlords who sign a new one-year lease at a higher rent without giving proper 90-day notice think the new lease "resets" everything. It doesn't. The rent increase rules still apply, and an improper increase can be challenged at the LTB. Our post on rent increase guidelines in Ontario walks through the full process.

The Renewal Notice Timeline: What to Do and When

If you want to offer a new fixed-term lease, here's a practical timeline to follow:

90+ days before lease end: Decide whether you want to offer a new fixed-term lease and at what rent. If you're increasing rent, prepare your N1 notice.

60–90 days before lease end: Serve the N1 notice if you're raising rent. Reach out to your tenant about whether they want to continue on a fixed-term basis.

30–60 days before lease end: If the tenant is interested in a new fixed-term lease, prepare the new agreement and give them time to review it. Don't pressure them to sign.

At lease end: If a new lease has been signed, the new term begins. If not, the tenancy continues month-to-month on existing terms (with any properly noticed rent increase applying on its effective date).

There is no legal requirement to send a formal notice about lease renewal. The conversion to month-to-month is automatic. Good landlords communicate proactively anyway — it reduces uncertainty for both sides.

What Tenants Must Do When Leaving at the End of a Fixed Term

If a tenant wants to leave at the end of their fixed-term lease (not continue month-to-month), they need to give proper written notice. Under the RTA:

• A tenant must give at least 60 days' written notice before the end of the lease term
• The notice must clearly state the date they intend to vacate
• The termination date must be the last day of a rental period (usually the last day of the month)

If a tenant just moves out without giving notice at the end of the fixed term, the tenancy may be considered ongoing, and the tenant could potentially be held responsible for continued rent.

Practically speaking, if a tenant moves out on the last day of their lease without giving 60 days' notice, many landlords simply accept the vacancy. But if the tenant is a month behind on notice (say, they told you with only 30 days to go), you may have grounds to claim one additional month of rent.

Month-to-Month: Is It Actually a Problem?

Some landlords are uneasy with month-to-month tenancies — they feel less secure than a signed lease. But in practice, month-to-month tenancies work fine for most situations:

• You can still apply rent increases with proper notice
• The tenant can still be evicted for valid reasons under the RTA
• The tenant can leave with 60 days' notice, which is the same as a fixed-term tenant who has reached the end of their term

What month-to-month doesn't give you is certainty about when the unit will become available. If you have specific plans for the property — selling, major renovations, moving in a family member — a fixed-term lease gives you more predictable timing.

If you're unsure which approach makes sense for your situation, that's a conversation worth having with your property manager before the lease end date sneaks up on you.

Common Mistakes Ontario Landlords Make at Renewal

Telling a tenant the lease "isn't being renewed" without legal grounds. The lease doesn't get renewed — it automatically continues. Telling a tenant they must leave at lease end when you have no valid legal grounds is a violation of the RTA.

Signing a new lease without proper rent increase notice. If the new lease includes a higher rent, you still need to follow the 90-day notice requirement. The new lease doesn't substitute for the N1 process.

Adding illegal clauses to a new lease. If you offer a new fixed-term lease, you cannot use it as an opportunity to add clauses that restrict tenant rights — no modifications to plumbing or utilities the tenant pays for, no blanket bans on pets (you can make requests, but enforcement is limited), no waiving maintenance responsibilities.

Assuming month-to-month means less protection for landlords. Month-to-month tenancies under the RTA carry essentially the same tenant protections as fixed-term tenancies. The legal framework doesn't change.

Key Takeaways

• Fixed-term leases in Ontario automatically convert to month-to-month at the end of the term — no action required from either party
• You can offer a new fixed-term lease, but the tenant is not required to sign one
• You cannot end a tenancy just because the fixed term has expired — you need valid legal grounds under the RTA
• Rent increases require 90 days' written notice and must follow the annual guideline — signing a new lease doesn't bypass this
• Month-to-month tenancies work well for most landlords and don't meaningfully reduce your rights

Lease renewals feel more complicated than they are once you understand that the RTA defaults to continuity. The system isn't designed to trip you up — it's designed to keep good tenants housed. Work with that, and lease-end transitions become routine.

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If you'd rather not track lease end dates, notice deadlines, and rent increase timing on your own, Prospera Properties handles all of it for landlords in London, St. Thomas, and Strathroy. Get in touch to learn how we manage lease renewals and tenant communications on your behalf.