Month to Month Vs. Annual Renewal
In Ontario, when a residential lease expires and there is no new lease, the tenancy automatically becomes a month-to-month tenancy. So, do you renew the lease or simply stick with the monthly rollover?
MONTH TO MONTH
PRO : freedom and flexibility if the tenant decides to move. A tenant under a month-to-month tenancy must give only 60 days’ notice before moving out. If you live a more transient lifestyle then this may be the one for you.
CON : potential for eviction. The landlord can evict the tenant with as little as 60 days’ notice, depending on the situation (the situation being if the landlord or their direct relative is moving in). If you love your home, this is certainly a risk.
CON : higher rent. Oftentimes, it’s easier to negotiate keeping the rent the same or lower if you commit to signing a new lease.
ANNUAL Renewal
PRO : Security of calling a place home for extended period of time.
PRO : Security of rent control. No rent increase until the end of the lease.
CON : Tenants under leases would be responsible to pay for the full term of the lease even if they wanted to move out sooner.