Ontario Lease Renewal Agreement Template + Legal Guide
Ontario Lease Renewal Agreement is a simple document used to extend an existing rental lease without creating a brand-new contract. It helps both landlords and tenants continue the tenancy smoothly while staying compliant with Ontario laws.
In most rental situations in Ontario, a lease does not need to be rewritten from scratch. A renewal agreement saves time, keeps things clear, and avoids legal confusion. Under Ontario law, rules from the Residential Tenancies Act (RTA) still apply during renewal, especially for rent increases and tenant rights.
Free Ontario Lease Renewal Agreement Template
Below is a clean, ready-to-use template. You can copy and edit it based on your situation.
What Is a Lease Renewal Agreement in Ontario?
A lease renewal agreement is a short document that extends an existing lease for another fixed term (for example, 6 or 12 months).
Renewal vs Extension vs New Lease
| Type | Meaning | When Used |
| Renewal | New fixed term with same lease | Most common |
| Extension | Short continuation, often informal | Rare |
| New Lease | Completely new contract | Major changes |
Real Example
A tenant signs a 1-year lease from January to December.
In November, both parties agree to continue for another 12 months with a small rent increase.
Instead of creating a new lease, they sign a renewal agreement.
Is Lease Renewal Legal Under Ontario Law?
Yes. Under Ontario law, lease renewal is fully allowed—but it is not required.
Here’s how the law works:
- When a fixed-term lease ends, it automatically becomes month-to-month
- No renewal is needed for the tenant to stay
- Renewal is optional and based on mutual agreement
Important Legal Rules
- Rent increases must follow Ontario guidelines
- Proper notice (usually 90 days) is required
- Landlords cannot force tenants to renew
In simple terms:
- Tenants can stay without renewing
- Renewal just gives more structure and stability
When Should You Use a Lease Renewal Agreement?
A lease renewal makes sense in many practical situations.
Common Use Cases
- Fixed-term lease is about to end
- Tenant wants to stay long-term
- Landlord wants stable income
- Both want to avoid month-to-month uncertainty
Real Scenario
A landlord has a reliable tenant paying rent on time.
Instead of switching to month-to-month, both agree on:
- 12-month renewal
- Slight legal rent increase
- Same rules as before
This reduces turnover risk and keeps things predictable.
To extend a tenancy legally, this lease renewal agreement should reference the original lease contract. You must also comply with Ontario tenancy laws and understand rent increase rules. Supporting documents such as a rent receipt and month-to-month lease may apply.
Key Elements of a Valid Lease Renewal Agreement
To be legally clear and enforceable, include these details:
Tenant and Landlord Details
- Names must match the original lease
- Avoid spelling errors
Property Information
- Full address of the rental unit
- Include unit number if applicable
Renewal Term
- Fixed duration (e.g., 6 or 12 months)
- Start and end dates clearly written
Updated Rent Details
- New rent amount (if increased legally)
- Payment due date
Changes to Existing Terms
- Utilities (included or not)
- Parking rules
- Pet policies
Signatures
- Both landlord and tenant must sign
- Without signatures, enforcement becomes difficult
Lease Renewal vs Month-to-Month Tenancy (Important)
Many tenants don’t realize they don’t need to renew to stay.
How Month-to-Month Works
After the lease ends:
- Tenant stays automatically
- Same terms continue
- Rent stays the same unless legally increased
Comparison
| Factor | Lease Renewal | Month-to-Month |
| Stability | High | Medium |
| Flexibility | Low | High |
| Commitment | Fixed term | Ongoing |
| Risk of leaving | Low | Higher |
When to Avoid Renewal
Tenants may avoid renewal if:
- They plan to move soon
- They want flexibility
- They are unsure about future plans
Ontario Rent Increase Rules During Renewal
Rent cannot be increased freely—even during renewal.
Legal Requirements
Under Ontario law:
- Must follow annual rent increase guideline
- Must give 90 days written notice
- Increase allowed only once every 12 months
Exceptions
Some units are exempt, such as:
- New buildings first occupied after Nov 15, 2018
Important:
Even if signing a renewal, illegal rent increases can be challenged at the Landlord and Tenant Board (LTB).
How to Fill Out the Lease Renewal Agreement (Step-by-Step)
Follow this simple process:
Step 1: Copy Original Lease Details
- Names
- Address
- Original lease date
Step 2: Decide Renewal Term
- Common: 6 or 12 months
Step 3: Add Updated Rent
- Only if legally allowed
Step 4: Include Any Changes
- Utilities
- Parking
- Rules
Step 5: Sign and Keep Copies
- Each party should keep a signed copy
Common Mistakes to Avoid
Many disputes happen because of simple errors.
Avoid these:
- Increasing rent without proper notice
- Changing major terms illegally
- Forgetting signatures
- Confusing renewal with a new lease
- Not documenting changes clearly
Practical Tip:
Always keep communication in writing (email or signed document).
Can a Landlord Refuse Lease Renewal in Ontario?
Yes—but there are strict limits.
What Landlords Can Do
- Refuse to renew a fixed-term lease
- Allow tenancy to become month-to-month
What Landlords Cannot Do
- Evict just to avoid renewal
- Force a tenant to leave without legal reason
Under Ontario law, eviction must follow proper legal grounds and notice procedures.
Legal Risks of Improper Lease Renewal
Doing it incorrectly can cause serious issues.
Possible Problems
- Invalid rent increase (tenant can challenge it)
- Disputes at the Landlord and Tenant Board
- Confusion from verbal agreements
- Loss of legal protection
Real Risk Example:
A landlord increases rent without notice during renewal.
The tenant files a complaint—and the increase is reversed.
FAQs
Is lease renewal mandatory in Ontario?
No, lease renewal is not mandatory in Ontario. After the fixed-term lease ends, the agreement usually continues automatically on a month-to-month basis under the same terms. This means tenants can stay without signing a new lease.
Can rent be increased during renewal?
Yes, rent can be increased during renewal, but only within the legal limits set by Landlord and Tenant Board. The landlord must also give proper written notice before increasing the rent, following provincial rules.
Do I need a new lease instead of renewal?
A new lease is only required if there are major changes to the agreement, such as rent, duration, or conditions. If everything stays the same, a simple renewal or continuation is usually enough.
Is a written renewal required?
A written renewal is not legally required in Ontario, but it is strongly recommended. Having it in writing helps avoid confusion and provides proof of the agreed terms for both parties.
Can tenants refuse renewal?
Yes, tenants can refuse to renew the lease if they prefer not to commit to another fixed term. In such cases, they can continue living in the property on a month-to-month basis under existing conditions.
