Lease Renewal in Ontario: What Happens When a Fixed-Term Ends

On the day after a fixed-term lease expires, if the tenant remains in possession of the unit, the following happens automatically under the RTA:

This is the point most new landlords misunderstand. A tenant who declines to sign a new fixed-term lease is not doing anything wrong. They are not in breach. They are exercising a legal right under the RTA.

If you try to make signing a new lease a condition of continued occupancy, you have attempted to interfere with the tenant's right to remain. This can expose you to a T2 application (harassment, interference with quiet enjoyment).

You can offer a new fixed-term lease and the tenant can agree to sign one — it just has to be genuinely voluntary. If a tenant agrees to a new fixed-term, you get more certainty about the rental period. If they prefer month-to-month, the tenancy continues on those terms.

What if the tenant just stays past the lease end date?

A tenant who does not move out on the lease end date is not trespassing. They are legally a holdover tenant — which the RTA automatically converts to a month-to-month tenancy. You cannot call the police to remove them. You cannot change the locks. The tenancy continues until properly terminated through the LTB process.

A month-to-month tenancy is not a weaker tenancy from the landlord's perspective in terms of legal protections. You still have:

What you cannot do with a month-to-month tenant

• ✗End the tenancy just because you prefer a new tenant
• ✗Refuse to renew to create a vacancy (this is the same as illegal eviction)
• ✗Increase rent without the proper N1 notice process
• ✗Change lease terms without the tenant's written agreement
• ✗Remove services included in the original lease without consent

To increase rent on a month-to-month tenant, you serve an N1 notice at least 90 days before the effective date of the increase. The effective date must be on the first day of a rental period (typically the first of the month).

Rent-exempt units (post-November 2018)

Units first occupied for residential purposes after November 15, 2018 are exempt from Ontario's rent increase guideline. This includes new builds, newly converted spaces, and units with no prior residential use. For these units, you can increase rent to any amount with 90 days' written notice — there is no percentage cap.

This is a major distinction. If you own a newer building, your rent increase rights are significantly broader. If you are unsure whether your unit qualifies, check the building's first occupancy date.

N1 timing strategy

You can only raise rent once every 12 months. To maximize income on a rent-controlled unit, time your N1 carefully: serve it 90 days before the 12-month anniversary of the last increase (or move-in, if no previous increase). If you miss the window, the clock resets and you lose that year's increase opportunity — you cannot stack two increases or backdate them.

If both you and the tenant agree to end the tenancy, use an N11 (Agreement to End the Tenancy). Both parties sign. The N11 sets a specific termination date. Once signed, the tenant is committed to vacating by that date, and you are committed to not proceeding with any eviction applications.

The N11 is the cleanest path when both sides are ready to part ways. It avoids the LTB process, gives certainty on both sides, and creates a clear record.

There is no universally correct answer — it depends on your situation.

In practice, many Ontario landlords let tenancies convert to month-to-month after the initial term — the overhead of managing renewal dates and renegotiating terms is not worth the marginal benefit of a fixed term, especially for reliable tenants.