If a long-term lease is not your cup of tea, opt for a short-term one. A month-to-month lease is a term used to describe this type of rental agreement. It is excellent for short-term rentals and other similar scenarios.

Month-to-month tenancy Ontario is also sometimes referred to as “tenancy at will”, although there are some notable differences between the two. Month-to-month leases are beneficial to tenants who know they’ll be purchasing a home soon. Note that residential leases in Ontario are automatically converted to month-to-month terms when the contract is not renewed.

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What is month-to-month tenancy in Ontario?

Agreements of this type are often for shorter periods, and hence the name “month-to-month“. On the other hand, tenancy-at-will is a monthly lease but does not require the signing of an agreement in writing to be valid.

There will be no end date to the tenancy agreement unless both the landlord and the tenant agree to it. Thus, the renter does not commit to any specific rental time, and the payment terms remain as previously agreed upon under a month-to-month leasing agreement. Term leases are frequently referred to as “estate at will” or “at-will agreements”, depending on the length of the contract.

Regardless of the name given to this arrangement, it must adhere to state legislation, which can differ. Since there’s no contractual lease arrangement, the tenant is free to leave whenever they want. Verbal agreements are common, although written arrangements might include the rent amount as long as the rental length isn’t predefined.

How does month to month tenancy Ontario work?

When a renter is allowed to stay in a house or apartment without having to sign a lease, it’s referred to as an “at-will agreement.” This agreement will be in effect as long as there isn’t a contract in place that specifies the length of time the tenant will be required to pay rent.

The following situations can also make this form of tenancy arrangement advantageous:

• There’s no written agreement between the landlord and the renter.

• They have not signed a new lease, even though their month-to-month agreement has expired.

• Month-to-month rent is agreed upon in writing.

The renter is allowed to carry out the lease conditions as they see fit once they have gained access to the property. Rental payments are made to the landlord, who’s expected to take their ownership rights back once a definite time has passed.

The pros and cons of a month-to-month tenancy Ontario

To some extent, the desire for adaptability and the ability to react swiftly to shifting circumstances determine whether a month-to-month lease is advantageous or unfavourable.


#1 The option to choose a final date

No long-term contract is required, and renters have the option to leave with little or no notice (a maximum of 30 days’ notice is required in most cases). Owners of rental properties have the option to terminate their leases with the same level of impunity, giving them greater control over their assets.

#2 Financial adequacy

Landlords have the option to adjust the rental rate every month if they so choose. Residents can take full advantage of a better deal elsewhere.

#3 A feeling of tranquillity

Rental property owners are not obligated to break a contract or find a subtenant if a tenant wants to relocate, which could occur if a tenant leaves before the term of a long-term lease finishes. Bad renters can be evicted far more quickly than they can with a long-term lease, which is advantageous to landlords.


#1 Short-notice eviction or eviction-related tenant replacement

Landlords may often find empty houses on short notice. Similarly, renters may be required to find new accommodations on short notice if their current accommodations are not available or if they’re evicted.

#2 Uncertainty

A month’s notice is not enough time for a renter to be certain of their tenancy; therefore, they must always have a contingency plan in place. Rental property owners cannot be certain that they will have a consistent supply of renters prepared to put up with the inconsistency of a monthly lease.

#3 Rents keep increasing, as income becomes less dependable

The likelihood of unexpected vacancies that cannot be quickly filled leads to renters paying higher rents than those who sign long-term leases. Plus, a short-term lease provides landlords with a less stable income than they would’ve otherwise received with an extended lease.

What is a month-to-month tenancy Ontario?

A month-to-month tenancy kicks off automatically in Ontario when a residential lease has expired, and no new lease has been signed. A tenant with a month-to-month tenancy is required to give 30 days notice before moving out of the property.

In contrast to this, tenants bound by long-term leases would be obligated to pay for the entire period of the lease even if they desired to vacate the premises earlier. However, it’s important you know that tenants have numerous rights under the Ontario Residential Tenancies Act and that leases often provide no additional protection for tenants.


Tenancy-at-will or month-to-month rental arrangements are not for everyone, although they can be advantageous to both tenants and landlords under certain circumstances. We hope you now have the answer to “What is Month-to-Month Tenancy Ontario?” Additionally, the renter is required to adhere to certain laws and regulations.

However, the absence of a formal lease agreement may result in both parties discovering that their situation has changed substantially and without much notice.