Fixed-Term vs Month-to-Month in Ontario: What Happens When the Lease Ends
Many new Ontario landlords sign a one-year lease thinking it gives them a clean exit after 12 months. It doesn't. In Ontario the choice between a fixed term and month-to-month matters much less than people expect.
The lease ends, the tenancy doesn't
"The end of a lease does not mean a tenant has to move out." If you don't agree on a new lease, the tenant can stay as a monthly or weekly tenant, depending on how rent was paid. (Source)
The tenant doesn't need to sign a renewal, and the rules in the original agreement still apply. (Source) Nothing has to happen at all: the fixed-term tenancy "will automatically convert" to a monthly, weekly or daily tenancy. (Source)
You can't end it because the term is over
A landlord can only end a tenancy for a reason the Residential Tenancies Act allows. The first step is usually a written notice on the right LTB form. If the tenant stays, you apply to the LTB, which decides after a hearing. (Source) Only the LTB can order an eviction. (Source)
"My lease ran out" is not, by itself, one of those reasons.
What the tenant has to do to leave
The tenant gives notice on form N9:
- Fixed term: at least 60 days before the end of the lease, and the termination date can't be before the last day of the term.
- Month-to-month: at least 60 days, and the termination date must be the last day of a rental month.
(Source) That brochure dates from 2018, so check it against the LTB's current forms.
Rent increases work the same either way
Most rents can go up once every 12 months, with at least 90 days' written notice, and by no more than the yearly guideline. That's 2.1% for 2026 and 1.9% for 2027. (Source) Rolling over to month-to-month doesn't give you an extra increase: the same agreement carries on, and the 12 months still count from the last increase or the start of the tenancy. See our guide to Ontario rent increases.
So which should you choose?
- A fixed term gives you a commitment from the tenant: they can't leave before the term ends with an N9 alone. (Source)
- Month-to-month lets the tenant leave with 60 days' notice, any month.
- For you, the landlord, the two are close to the same. In both cases you need a reason the Act allows to end the tenancy.
Either way, most new leases must be on Ontario's standard lease.
In Rentingwell, a unit that rolls over to month-to-month keeps its original start date, so its rent increase dates stay correct.