Your tenant’s one-year lease ends next month. You haven’t sent a renewal, they haven’t mentioned moving, and you’re wondering: do they need to sign something new? Can you ask them to leave? Can you raise the rent?
These are some of the most common questions we hear from landlords across Hamilton and Niagara. The short answer is that a month to month lease in Ontario starts automatically, and it changes less than most owners expect.
In this guide, we explain what actually happens when a fixed term ends, what stays the same, how rent increases and notices work in 2026, and how to manage month-to-month tenancies without costly mistakes. This article is general information, not legal advice.
The Short Answer: The Tenancy Simply Continues
Under Ontario’s Residential Tenancies Act, 2006 (RTA), a tenancy doesn’t end just because the lease term does. If you and your tenant don’t sign a new agreement and nobody gives proper notice, the tenancy automatically renews on a monthly basis.
In other words, the tenant doesn’t need to sign anything, and you don’t need to do anything. The relationship carries on.
Did Bill 60 Change This?
No. When Ontario introduced Bill 60 (the Fighting Delays, Building Faster Act, 2025), the province floated the idea of ending automatic month-to-month renewals. However, the government dropped that proposal in October 2025.
So in 2026, the rule remains: a fixed-term lease still rolls into a monthly tenancy. Bill 60 did change other areas of landlord-tenant law, which we cover below.
What Stays the Same When a Lease Goes Month-to-Month
Many landlords assume the old lease “expires” with the term. In practice, nearly all of it carries forward:
- The rent amount stays the same until you serve a lawful increase.
- The rent due date stays the same.
- Lease terms and rules (pets, smoking, utilities, parking, insurance) continue to apply, as long as they comply with the RTA.
- Your tenant’s protections under the RTA stay fully in place.
- Your obligations for repairs, maintenance, and 24 hours’ written notice before entry don’t change.
The only thing that really changes is the length of the commitment. Instead of a fixed end date, the tenancy now runs one month at a time.
What Actually Changes for Landlords and Tenants
| During the Fixed Term | After It Goes Month-to-Month | |
|---|---|---|
| Tenant leaving | Can’t end the tenancy before the term’s end date (unless you agree or they assign) | Can leave with 60 days’ written notice, ending on the last day of a rental period |
| Landlord ending the tenancy | Only for reasons allowed under the RTA | Still only for reasons allowed under the RTA |
| Rent increases | Once every 12 months, 90 days’ written notice | Exactly the same |
| New lease required? | No | No |
The biggest practical shift is on the tenant’s side. A month-to-month tenant has more flexibility to move, so turnover can come with less warning than a fixed-term renewal cycle would give you.
Can You End a Month-to-Month Tenancy?
Yes, but only for a reason the RTA allows. You can’t end a tenancy simply because the lease term is over, or because you’d like a higher-paying tenant.
Common lawful routes include:
- N4: Non-payment of rent. Since September 21, 2026, the termination date on an N4 for monthly tenancies can be just 7 days after the notice, down from 14.
- N5 / N6 / N7: Damage, interference, illegal acts, or serious issues.
- N8: Persistent late payment of rent.
- N12: You, a close family member, or a qualifying buyer needs the unit for residential use.
- N13: Demolition, conversion, or repairs so extensive the unit must be vacant.
- N11: A mutual agreement with the tenant to end the tenancy.
The 2026 N12 Change Every Owner Should Know
Bill 60 introduced a new option for landlord’s own-use notices. Traditionally, an N12 required at least 60 days’ notice plus one month’s rent in compensation.
Now, if you give at least 120 days’ notice and the termination date falls on the last day of a rental period, you generally no longer owe that one month of compensation. You still need a genuine, good-faith intention to use the unit, and the LTB still scrutinizes these notices closely.
Rent Increases on a Month-to-Month Tenancy
Going month-to-month doesn’t reset the rent or open the door to a market-rate increase. The usual rules apply:
- You can raise rent once every 12 months.
- You must give at least 90 days’ written notice, typically using Form N1.
- For most rent-controlled units, the increase can’t exceed the provincial guideline: 2.1% for 2026 and 1.9% for 2027.
- Units first occupied for residential purposes after November 15, 2018 are generally exempt from the guideline, but the 12-month and 90-day rules still apply.
If you want to raise rent above the guideline (for major capital work, for example), you’ll need to apply to the Landlord and Tenant Board for an above-guideline increase.
Should You Offer a New Fixed-Term Lease?
You can always offer one, but your tenant has no obligation to sign it. Before you push for renewal, weigh the trade-offs:
A new fixed term can make sense when:
- You want more predictable turnover timing.
- You have a long-term hold strategy for the property.
- The tenant wants stability and is a strong fit.
Staying month-to-month can make sense when:
- The tenant is reliable and happy to stay.
- You may sell or move a family member in later (though RTA rules still apply).
- You prefer to avoid annual paperwork that doesn’t change your rights.
Either way, a new lease doesn’t let you increase rent beyond what the guideline and 12-month rule allow for an existing tenant.
How Golfi Property Management Handles a Lease Moving to Month-to-Month
Here’s an illustrative scenario. An out-of-town owner has a two-bedroom in Stoney Creek with a 12-month lease ending in January. The tenant pays on time and wants to stay.
About three months before the term ends, our team reviews the tenant’s payment history, the current rent against today’s market, and the owner’s plans for the property. Next, we flag whether a guideline increase is available and, if so, prepare and serve the N1 on time.
If the owner wants a new fixed term, we present it to the tenant. If not, we confirm the tenancy continues monthly, update the owner’s records, and keep inspections and maintenance on schedule. The owner gets a clear summary and makes the decision, without having to track notice deadlines or tenant messages.
That’s the value of full-service property management: consistent timelines, documented decisions, and local market insight across Hamilton, Niagara, and Halton.
Common Mistakes to Avoid
- Assuming the lease “expired” and telling the tenant they have to leave.
- Charging a renewal fee or new deposit to continue a tenancy.
- Missing the 90-day N1 window, which can push an increase back by months.
- Using the wrong notice form, which can get your application dismissed at the LTB.
- Forgetting last month’s rent interest. If you hold a last month’s rent deposit, you must pay the tenant interest on it annually at the guideline rate (or apply it toward the rent increase).
Frequently Asked Questions
Does a lease automatically go month-to-month in Ontario?
Yes. If a fixed-term lease ends and you haven’t signed a new agreement, and neither side has given valid notice, the tenancy automatically continues on a monthly basis under the same terms.
How much notice does a month-to-month tenant need to give?
A tenant must give at least 60 days’ written notice, and the termination date must fall on the last day of a rental period. Tenants commonly use Form N9 for this.
Can a landlord evict a tenant when the lease ends?
No. In Ontario, the end of a lease term isn’t a legal reason to end a tenancy. You need a reason allowed by the RTA, the correct notice, and in most cases an order from the Landlord and Tenant Board.
Can I raise the rent when a lease becomes month-to-month?
Only under the normal rules: once every 12 months, with 90 days’ written notice, and within the guideline for rent-controlled units (2.1% in 2026, 1.9% in 2027).
Do I need my tenant to sign a new lease?
No. The original lease terms continue automatically. You can offer a new fixed-term lease, but the tenant can decline it and still keep their tenancy.
Conclusion: Month-to-Month Is Normal, Not a Problem
A month to month lease in Ontario isn’t a loophole or a risk in itself. It’s the default way most long-term tenancies continue, and it keeps nearly all of the original terms in place.
What matters is staying on top of the details: rent increase timing, the right notice forms, 2026 changes like the 120-day N12 option, and a clear plan for each property. That’s where many self-managing landlords lose time, money, or LTB cases.
At Golfi Property Management, we manage these timelines for owners across Hamilton, Niagara, and Halton every day. Backed by more than 20 years of industry experience and the legacy of The Golfi Team, we bring tenant screening, annual rent reviews, lease renewals, monthly financial reporting, and 24/7 emergency response to every property we manage.
Want help reviewing a lease that’s about to roll over? Request a free consultation with our team, meet our property management team, or see current rental properties we manage. Hamilton owners can also explore our Hamilton property management services.