Leases can be confusing. Although there are strict rules to what forms you use, and what information you can include in them, not everyone follows them.

In most scenarios, you will have a 'fixed-term' lease normally lasting for one year.

For example

• Your lease starts on March 1, 2025.

• Your lease ends on April 30, 2026.

• Your lease includes a clause saying that it will be a fixed-term for one year.

This is standard for most leases in Ontario. But what happens when the lease term is over?

For Residential Tenancies covered under the Residential Tenancies Act, what happens with your lease when it expires is very simple. 

We look at S.38 of the Residential Tenancies Act for this information

• S.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). 

This means that after your lease expires, if both parties are silent, the lease will automatically renew itself with the same terms (Except for any increases in rent), as a 'month-to-month' tenancy, rather than another year-long fixed term tenancy.

If your tenancy is a fixed term tenancy for a day, week, or monthly tenancy, it gets renewed for the same terms as well

• This means that your daily tenancy will be renewed for another daily tenancy, week for weekly, and month for monthly.

What if my landlord wants me to sign a new lease for the year?

Normally when a landlord wants you to sign a new lease, they will increase the rent above the guideline amount for rent-controlled units. This is illegal and does not count as a proper rent increase. 

If you wish to continue living in the unit, you do not have to sign a new lease. You can continue living in the unit as normal.

If you have any questions, please consider seeking free legal advice.

Tenant Duty Counsel is another good option for legal advice, or representation: https://www.acto.ca/for-tenants/tenant-duty-counsel/ 

If you are in need of assistance, please consider contact an organization such as Georgina Tenants' Association for a free legal consultation.