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Ontario Lease Renewal

gsicilia

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Is a LL obliged to renew a one year lease on a month to month once the one year expires or can the LL not renew at the end of the term and seek a new tenant?
 

housingrental

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In residential rentals you have no chance
All leases continue on in perpetuity until written notice to end tenancy has been provided by the landlord or tenant
The tenant has to provide 60 days notice and end on the end of the month
There are very limited reasons why a landlord can end tenancy like owner occupancy, change of use.
 

Flyingrocks

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I realize this is an old thread but a related question I have is. ..

From the perspective of each party, are there advantages or disadvantages to signing a new lease? In a renewal, can a new lease contain new clauses or otherwise be changed (baring increases to the rent payments above the guideline)?

If a new lease with amended clauses is refused by tenant, the tenant can then insist on a month to month tenancy?

From the Act:

Deemed renewal where no notice
38. (1) If a tenancy agreement for a fixed term ends and has not been renewed or terminated, the landlord and tenant shall be deemed to have renewed it as a monthly tenancy agreement containing the same terms and conditions that are in the expired tenancy agreement and subject to any increases in rent charged in accordance with this Act. 2006, c. 17, s. 38 (1).

Same
(2) If the period of a daily, weekly or monthly tenancy ends and the tenancy has not been renewed or terminated, the landlord and tenant shall be deemed to have renewed it for another day, week or month, as the case may be, with the same terms and conditions that are in the expired tenancy agreement and subject to any increases in rent charged in accordance with this Act. 2006, c. 17, s. 38 (2).

Same
(3) If the period of a periodic tenancy ends, the tenancy has not been renewed or terminated and subsection (2) does not apply, the landlord and tenant shall be deemed to have renewed it as a monthly tenancy, with the same terms and conditions that are in the expired tenancy agreement and subject to any increases in rent charged in accordance with this Act. 2006, c. 17, s. 38 (3

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Thomas Beyer

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Yes you can try to negotiate a brand new lease, by for example, offering tenant to fix the old crappy bathroom in exchange for a $150/month rent increase. Ok if both parties agree. You cannot force it though.
 

Flyingrocks

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Thanks Thomas! I guess a tenant could also attempt to negotiate a new clause or price. No agreement defaults to month-to-month.

I wasn't able to find a clause in the act about the 60 days notice specific to a lease term.

Q. In Ontario a residential tenant can end any lease with 60 days notice whether a one year term or month-to-month?



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Thomas Beyer

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Yes 2 months notice if month to month. If fixed term, say one year, then also two month before the end of the year. A one year lease cannot be unilaterally cancelled. Any contract can always be amended with mutual agreement, incl. leases.
 

Flyingrocks

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Ok, so just to be clear, renewing a one year term at the expiration of the first year lease is an advantage to the landlord as this one year contract holds the tenant responsible for the entire term.

The tenant CAN however refuse to sign a one year term renewal and the law allows that tenant to default to month-to-month.

Is that correct?

(I had understood the Ontario tenant laws basically made no difference between a 1 year term lease and month-to-month. I.E. both could be cancelled with 60 days given on the 1st of the month)

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Thomas Beyer

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Yes AT THE END of the term the one year term and the month to month are the same, but not the first 10 month. An agreement, incl. a lease, needs to have benefits for BOTH sides. A one year extension is beneficial mainly for the landlord, but also tenant as he can't be booted out say for personal use, renovations (or referred to as renovictions) or sale of property.
 
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