Lease Renewal Guide for Ontario Landlords

What happens when a lease ends in Ontario? Understanding renewal, continuation, and your rights and obligations.

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.

Devon Moore, Operations Lead Co-Founder & Operations Lead — D&D Property Management

Devon Moore is the co-founder and Operations Lead at D&D Property Management, managing rental properties across Kitchener-Waterloo, Cambridge, Guelph and Waterloo Region.