Lease and Rental Management
Lease renewal in Ontario operates differently than most landlords expect. The Residential Tenancies Act creates a framework that gives tenants significant protections at lease end — understanding how this works is essential for every Ontario landlord.
When a fixed-term lease ends and neither party takes action, the tenancy automatically converts to a month-to-month tenancy under the same terms. The tenant doesn't have to sign a new lease to keep renting. This is standard in Ontario and provides continuity for both parties without requiring renegotiation.
Ontario Tenancy Law
You can offer a new fixed-term lease at renewal time — but the tenant is not required to sign it. They can decline and continue month-to-month without penalty. Many landlords prefer month-to-month as it provides more flexibility, while others prefer the commitment of a new fixed term.
Rent increases at renewal must still comply with the annual guideline and require a 90-day N1 notice regardless of the lease type. The fact that a new lease is being signed does not allow you to set a new rent outside the guideline process for existing tenants.
Protecting Landlord Rights
The only time you can set a different rent outside the guideline is when the unit was vacant and a new tenant is entering — this is called a vacancy increase and there is no cap under current Ontario rules. For tenants continuing their tenancy, the guideline applies.
D&D Property Management manages lease renewals and rent increase processes for all managed properties, ensuring full RTA compliance and protecting client interests at every lease transition point.