Mutual release lease agreement ontario

The Residential Tenancies Act (the Act) has rules for how a landlord can end a residential tenancy and evict a tenant. This brochure provides some information about these rules.

It is not a complete summary of the law and it is not legal advice. If you need more information, please see Contact the Landlord and Tenant Board at the end of this brochure.

There are special rules for ending a tenancy in a care home that are not explained in this brochure. For information about the rules relating to cares homes, see the LTB ’s brochure: Rules for Care Homes.

Table of Contents

Tenancy Agreements

When a landlord rents a unit to someone, they enter into a tenancy agreement - a contract in which the tenant agrees to pay rent for the right to live in the rental unit. A written tenancy agreement is often called a lease. A standard lease must be used for most new tenancies. A tenancy agreement may also be oral or implied.

Fixed term tenancy

If the landlord and tenant agree that the tenancy will last for a specific period of time, this is called a fixed term tenancy. This is because both the start and end date are set out in the tenancy agreement. Most leases are for a fixed term; usually for a year.

Renewing a lease

The end of a fixed term tenancy or lease does not mean that the tenant has to move out or sign a renewal or a new lease in order to stay.

The lease is renewed automatically on a month-to-month basis (if the rent is paid monthly) or week-to-week basis (if rent is paid weekly). This means the landlord and tenant do not have to sign a new fixed-term lease when the term of the lease runs out. All the rules of the former lease will still apply to the landlord and tenant.

The landlord and tenant can also agree to renew the tenancy agreement for another fixed term, or enter into a new lease. If the landlord and tenant agree to enter into a new lease, the terms of the lease can only be changed in accordance with the Act. For example, if the landlord wants to increase the rent in the new lease, the Act’s rules about rent increases must be followed.

Security of tenancy

Tenants have security of tenancy. This means that a tenant can continue to occupy the rental unit until: