Deciding whether to sign a lease renewal or a new lease can affect your rent, responsibilities and legal protections as a tenant in Ontario. This guide helps renters understand the practical differences — how rent increases are handled, what changes to terms and deposits are allowed, how notice periods and habitability obligations work, and what happens if you decline a renewal. It explains simple steps to document condition, negotiate with a landlord, and use the Landlord and Tenant Board or official forms when needed. If you are preparing to renew or sign again, these clear, tenant-focused explanations aim to help you protect your rights and avoid surprises.
What changes when you renew versus sign a new lease in Ontario
When a fixed-term lease ends you and your landlord have options: you can sign a new fixed-term lease, agree to a month-to-month tenancy, or leave. A renewal often means continuing under the same or similar terms; a new lease is a new contract and can include different rent, length or rules. In Ontario, most rental units are governed by the Residential Tenancies Act, 2006, which sets rules about notices, rent increases and tenant protections [2].
Rent increases and timing
Rent increases are tightly regulated for most units in Ontario. A landlord must follow the annual rent increase guideline unless the unit is exempt, and provide proper written notice before any increase. If you sign a new lease at a higher rent, that new term becomes the agreed amount for the fixed term; if you remain on a month-to-month basis, rent increases still require proper notice and usually must follow the guideline unless exempt. Always check the Residential Tenancies Act, 2006 and official guidance before agreeing to new rent [2].
Deposits and payments
Ontario allows a rent deposit (commonly the last month's rent) but does not permit separate security deposits for damage in most residential tenancies. If your landlord asks for additional upfront money as a condition of renewal or signing a new lease, ask for a clear written explanation and for receipts. For more on deposits and what is permitted, see Understanding Rental Deposits: What Tenants Need to Know.
Changes to rules, pets, and other terms
A new lease can lawfully change many terms if both parties agree, including pet rules, subletting permission, or parking. But changes cannot require you to waive core legal protections under the Residential Tenancies Act, 2006. If you are unsure about proposed changes, request them in writing and keep copies for your records [2].
Repairs, habitability and ongoing obligations
Your landlord must maintain the unit in a good state of repair and meet health and safety standards whether you renew or sign a new lease. A new lease should not reduce those maintenance responsibilities. If repairs are neglected after signing any agreement, document the problem and use official complaint or application routes if necessary.
Documentation, notices and official forms
Always get notices and any new lease in writing. If a dispute arises you may need official forms or to apply to the Landlord and Tenant Board. The Board publishes official forms and instructions; review the forms page before filing so you use the correct document and follow deadlines [1]. Examples include application forms to raise or dispute issues at the Board and official notices related to tenancy changes.
Frequently Asked Questions
- Can my landlord raise the rent when my lease term ends?
- Yes, a landlord can propose a higher rent for a new lease, but increases must follow Ontario rules and proper notice under the Residential Tenancies Act, 2006 [2].
- Do I have to sign a new lease when my fixed term ends?
- No. If you do not sign a new lease you typically continue as a month-to-month tenant under most of the same terms, unless you and your landlord agree otherwise [3].
- What if my landlord changes important terms in a new lease I don’t want?
- You can negotiate, refuse the new terms, or give proper notice to end the tenancy. If negotiations fail, you can apply to the Landlord and Tenant Board for help using the Board's official forms [1].
How-To
- Review your current lease, check any written notice for timing, and confirm whether an increase follows the legal guideline.
- Document the unit condition and save all messages, lease drafts and receipts before discussing changes with your landlord.
- Negotiate in writing: ask for clarifications, propose compromises, and get any agreed changes in a signed document.
- If you cannot resolve the issue, file the correct form with the Landlord and Tenant Board or get legal advice to protect your rights.
Key Takeaways
- Signing a new lease can change rent and terms, while a renewal often continues existing terms unless both parties agree otherwise.
- Keep written records, photos and receipts to protect your position in any dispute.
- Use official forms and the Landlord and Tenant Board when informal negotiation does not solve the problem.
Help and Support / Resources
- Contact the Landlord and Tenant Board for hearings and forms
- Ontario.ca: Renting, tenant rights and responsibilities
- Residential Tenancies Act, 2006 (official legislation)
