How the RTA Treats Month-to-Month Tenancies Differently From Fixed Terms

What actually happens when a fixed term ends

Many Ontario tenancies begin with a fixed term — a one-year lease is the most common example — and tenants are sometimes surprised to learn what generally happens when that term simply runs out without anyone doing anything. Under the Residential Tenancies Act, 2006 (RTA), a fixed-term tenancy does not generally end on its own just because the term has expired. Instead, in most cases, the tenancy automatically continues on a month-to-month basis, on exactly the same terms as the original lease, unless the landlord and tenant have agreed to something different, such as signing a new fixed-term lease or the tenant giving proper notice to move out.

This default rule surprises both new landlords and new tenants. A landlord cannot generally require a tenant to leave simply because a one-year term has ended, and a tenant generally cannot assume the lease has "expired" in the way a gym membership might. The RTA treats continued occupancy after a fixed term as the start of a new phase of the same tenancy, not a gap that needs to be filled with a new agreement.

The protections that stay exactly the same

It's worth emphasizing what does not change when a tenancy shifts from a fixed term to a month-to-month basis, because the differences are often smaller than people assume. The rent amount, the unit's condition obligations, the landlord's repair duties, the tenant's right to reasonable enjoyment of the unit, and the rules around entry and privacy all generally continue unchanged. A month-to-month tenant is not a "lesser" tenant under the RTA — security of tenure, meaning the general protection against being required to move out without a valid legal reason and proper notice, applies in essentially the same way regardless of whether the tenancy is in a fixed term or has become month-to-month.

This matters because a persistent misconception holds that a landlord has more freedom to end a month-to-month tenancy than a fixed-term one, or vice versa. In reality, the grounds a landlord can rely on to end a tenancy — such as non-payment of rent, the landlord's own use of the unit, or sale of the property to a purchaser who intends to occupy it — generally apply to both fixed-term and month-to-month tenancies in largely the same way, subject to some differences in timing discussed below.

How notice to end a tenancy differs

Where real differences do appear is in the timing and type of notice involved. A tenant on a fixed-term lease who wants to end the tenancy at the end of that term generally needs to give notice timed to the end of the term itself — commonly at least 60 days before the term's final day, delivered in the correct form. A month-to-month tenant, by contrast, is not tied to a specific term-end date and instead generally needs to give at least 60 days' notice ending on the last day of a rental period (typically a month), which offers somewhat more flexibility in picking the departure date, though it still requires proper advance notice.

On the landlord's side, certain notices — such as a landlord's notice of termination for the landlord's own use, or for sale to a purchaser who intends to occupy the unit — have timing rules that can interact differently with a fixed term still running versus a month-to-month tenancy. A landlord generally cannot use some of these notices to force an early end to a fixed term, but may be able to use them to end a month-to-month tenancy at the appropriate notice date. These distinctions are technical enough that reviewing the overview of evictions in Ontario alongside the specific notice form involved is usually worthwhile before relying on any particular timeline.

Rent increases on a month-to-month tenancy

Rent increase rules generally apply the same way whether a tenancy is in a fixed term or month-to-month: a landlord generally needs to wait at least 12 months since the last increase (or since the start of the tenancy) and must give proper written notice, typically at least 90 days in advance, using the correct form. Moving to month-to-month status doesn't, by itself, reset this clock or create a new opportunity to raise rent outside the usual rules. Our guide on rent increases in Ontario covers the standard timing and guideline rules in more depth, and they apply in essentially the same way once a tenancy has become month-to-month.

Why landlords sometimes offer a new fixed term instead

Because a tenancy will generally continue month-to-month by default, some landlords prefer to offer tenants a new fixed-term lease when the old one ends, rather than letting the tenancy lapse into month-to-month status. There's nothing wrong with this approach, and a tenant is generally free to accept or decline a new fixed-term offer — declining it does not generally put the tenancy at risk, since the month-to-month default simply takes over instead. A landlord also generally cannot require a tenant to sign a new fixed term as a condition of continuing to live in the unit; if the tenant doesn't sign, the existing tenancy typically just continues on a month-to-month basis under the same terms.

Common misconceptions about "automatic renewal"

It helps to be precise about terminology here, because "automatic renewal" is sometimes used loosely to describe two different things. The RTA's default rule is better described as automatic continuation on a month-to-month basis, not automatic renewal of the same fixed term. A lease that explicitly states it "automatically renews" for another full year, without any tenant action, may itself be an unusual clause worth checking carefully — the RTA's own default is month-to-month continuation, and a lease term that tries to lock a tenant into a brand-new fixed term without their agreement each time may not operate the way its wording suggests. Comparing a specific lease's renewal language against the RTA vs. your lease framework is a useful way to check which terms are actually enforceable.

Giving notice to move out as a tenant

A month-to-month tenant who wants to move out generally needs to give the landlord written notice using the correct form, timed to end on the last day of a rental period, with at least 60 days' notice. Getting the date wrong is a common and avoidable problem — notice that doesn't align with the rental period or falls short of the minimum notice period may not be valid, which can leave a tenant responsible for rent longer than they expected. Reviewing the moving-out checklist before giving notice can help confirm the timing is correct.

Practical considerations for both sides

For landlords, a month-to-month tenancy is generally just as protected and just as governed by the RTA as a fixed-term one — it isn't a looser or more flexible arrangement, and ending it still requires a valid legal reason and proper notice in essentially every case. For tenants, understanding that a lease "ending" doesn't mean the tenancy ends is often reassuring, but it's equally important to understand the notice obligations that come with wanting to leave. In both cases, the safest approach is to treat a month-to-month tenancy as carrying essentially the same rights and responsibilities as the fixed term that preceded it, with the main practical differences limited to notice timing rather than the underlying protections themselves.

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Reviewed by Ryan J. Manilla, BA, JD

Legal Reviewer · Landlord Tenant Ontario