Month-to-Month vs Fixed-Term Lease in Canada: Key Differences and Tenant Rights
Whether you are signing your first lease or your fixed-term is about to expire, the difference between a fixed-term and a month-to-month tenancy matters — not just for flexibility, but for your legal rights. In Ontario and most Canadian provinces, your landlord cannot simply evict you when a fixed-term lease ends. Here is what you need to know.
What Is a Fixed-Term Lease?
A fixed-term lease has a defined start date and a defined end date — the most common example being a one-year lease running from July 1, 2026 to June 30, 2027. Both you and your landlord commit to the tenancy for that period. The landlord cannot raise your rent mid-term in Ontario, and you cannot leave without consequence before the end date (unless you assign or sublet the unit, or the landlord agrees to an early termination).
The critical question for most tenants is: what happens when the fixed term ends? The answer varies by province, but in Ontario it is clear — the tenancy does not end automatically.
Under s.38 of Ontario's Residential Tenancies Act, when a fixed-term lease expires and neither the landlord nor the tenant has taken steps to end the tenancy, it automatically converts to a monthly periodic tenancy on the same terms. Your rent stays the same. Your rights stay the same. You simply continue paying rent month to month as if you had a month-to-month agreement from the beginning.
In BC, the Residential Tenancy Act similarly provides that a tenancy continues after a fixed-term ends, unless a valid vacate clause has been included (more on this below). Alberta and Quebec take different approaches, covered in the province comparison table further down.
What Is a Month-to-Month Tenancy?
A month-to-month tenancy — also called a periodic tenancy — has no set end date. It renews automatically at the end of each rental period (usually each month) until either the tenant or the landlord gives proper notice to end it. Month-to-month tenancies are common when a fixed-term lease converts at the end of its term, but some tenants begin on a month-to-month basis from the start.
The notice required to end a month-to-month tenancy differs across Canada. Here is a summary for tenants who want to end their own tenancy:
| Province | Notice Required (Tenant Ending Tenancy) | Form / Method |
|---|---|---|
| Ontario | 60 days | Form N9 |
| British Columbia | 1 month | Written notice, last day of rental period |
| Alberta | 60 days (monthly tenancy) | Written notice |
| Quebec | 3 months minimum (1+ year lease) | Written notice of non-renewal |
In Ontario, the notice must expire on the last day of a rental period. So if your rent is due on the first of the month and you want to leave by September 30, you must serve the Form N9 no later than July 31 — giving a full 60 days expiring at the end of September.
The Key Myth: Lease Expiry Does NOT Mean You Have to Leave
This is one of the most misunderstood rules in Canadian rental law.
In Ontario, the expiry of a fixed-term lease is not a valid ground for eviction. Under RTA s.38, when your lease expires, you automatically become a month-to-month tenant on the same terms. Your landlord cannot serve an eviction notice simply because your lease end date has arrived.
The same principle applies in all Canadian provinces: lease expiry alone is never sufficient grounds to evict a tenant. A landlord who wants to end a tenancy must have a valid statutory reason — non-payment of rent, personal use, demolition, or another prescribed ground — and must go through the proper process with the relevant tribunal.
You may receive a letter from your landlord saying "your lease is up on June 30 — please vacate by then." In Ontario, this is not a valid eviction notice. Receiving it does not mean you have to leave. Only a proper LTB process can terminate your tenancy against your will — and the LTB will not issue an eviction order simply because a fixed-term has ended.
If you are in Ontario and your landlord is pressuring you to leave at the end of your lease with no valid grounds, you can file a T2 application (Tenant's Rights) with the LTB for interference with your reasonable enjoyment.
Province-by-Province Comparison
While the core principle is consistent across Canada, the specific rules at expiry differ by province:
| Province | Fixed-Term Auto-Converts? | Min Notice to Leave (Tenant) | Landlord Can End at Expiry? |
|---|---|---|---|
| Ontario | Yes — automatically monthly (RTA s.38) | 60 days (Form N9) | No |
| British Columbia | Yes, unless valid vacate clause (requires prior RTB approval, sublease, or landlord/family occupancy) | 1 month | Only with a valid vacate clause (RTB approval required) |
| Alberta | No automatic conversion (RTAA s.11); tenancy ends unless renewed | 60 days | Yes, if no renewal agreement — but proper notice is still required |
| Quebec | Tenant has right to renew (Civil Code art.1941); landlord must give notice of non-renewal | 3 months (1+ year lease) | Only for specific permitted reasons; notice of non-renewal (3–6 months) required |
A note on Alberta:While Alberta's RTAA s.11 does not provide automatic conversion, this does not mean a landlord can simply send a text saying "leave by June 30." Proper written notice is still required, and landlords must comply with all RTAA procedural requirements. If a tenant continues to occupy the unit after the fixed term expires and the landlord accepts rent, a month-to-month tenancy may arise by conduct.
A note on BC vacate clauses:A clause in a BC fixed-term lease requiring you to leave at the end of the term is only enforceable if the landlord has received prior approval from the Residential Tenancy Branch, the tenancy is a sublease, or the landlord or their close family member will occupy the unit. A bare "you must vacate at end of term" clause without any of these conditions is unenforceable, and you can remain.
Early Termination: What Are Your Options?
Breaking a fixed-term lease before the end date is possible, but it comes with consequences in most provinces. Here is what your options look like:
Assignment and Subletting (Ontario)
Under RTA s.97, Ontario tenants have the right to assign or sublet their unit — but both require the landlord's consent. Critically, the landlord cannot unreasonably withhold consent. If they refuse without a valid reason, you can apply to the LTB and may be released from your lease obligations.
- Subletting: You temporarily hand over the unit to another person (the subtenant) while you retain the right to return. You remain responsible to the landlord for rent and any damage caused by the subtenant.
- Assignment: You permanently transfer your lease — and all rights and obligations — to a new tenant. Once the assignment is complete, you are no longer the tenant. The assignee takes on your exact lease terms, including your rent amount.
Duty to Mitigate
If you simply walk away from a fixed-term lease without assigning or subletting, you are potentially liable for the remaining rent. However, in every province the landlord has a duty to mitigate — they must make reasonable efforts to find a new tenant and cannot simply sit on an empty unit collecting rent from you. If they fail to mitigate, your liability is reduced accordingly.
Special Circumstances
Some provinces allow early termination without penalty for specific reasons: domestic violence or abuse (Ontario, BC, Alberta), the landlord's failure to maintain the unit, or medical necessity requiring a move to long-term care. If any of these apply to your situation, consult a tenant duty counsel or legal aid clinic for advice on the process.
Which Is Better for You?
There is no universal right answer — it depends on your plans, the rental market, and the province you are in. Here is a direct comparison:
Fixed-Term Lease
Pros
- +Rent stability — landlord cannot raise rent mid-term in Ontario
- +Certainty for both parties for the lease period
- +May be preferred by landlords in competitive markets
Cons
- −Early termination carries potential financial exposure
- −Less flexibility if your plans change
Month-to-Month Tenancy
Pros
- +More flexibility — leave with 60 days notice in Ontario
- +No penalty for ending the tenancy with proper notice
- +Same core protections as a fixed-term tenancy in Ontario
Cons
- −In provinces without rent control on new units, rent could be raised on renewal with proper notice
- −Less certainty about how long you can stay
In Ontario specifically, where the RTA provides strong protections regardless of tenancy type, the security difference between fixed-term and month-to-month is less significant than many tenants assume. A month-to-month Ontario tenant cannot be evicted without cause any more easily than a fixed-term tenant.