Ontario Rental Agreement After One Year: Renew, Terminate or Modify?
Renting a property in Ontario can be a flexible and affordable option for both tenants and landlords. However, one-year rental agreements inevitably come to an end, and tenants and landlords alike need to make important decisions about the future of the tenancy.
In Ontario, a landlord must give a tenant notice of termination of the tenancy at least 60 days before the end of a fixed-term lease (such as a one-year rental agreement) or 28 days before the end of a month-to-month lease. The tenant, on the other hand, has the option to renew the tenancy, terminate it, or negotiate changes to the rental agreement.
Renewing the Tenancy
If the tenant wishes to stay in the property after the initial one-year rental agreement ends, they can ask the landlord to renew the tenancy. The landlord may agree to renew the tenancy under the same conditions, such as rent amount and lease term, or may propose changes to the rental agreement. If the landlord proposes changes, the tenant should review them carefully and negotiate terms if necessary. In Ontario, a landlord cannot unreasonably refuse to renew a tenancy.
Terminating the Tenancy
If the tenant wishes to move out of the property at the end of the one-year rental agreement, they should give the landlord notice of termination at least 60 days before the end of the lease. The tenant must ensure that the property is in good condition, clean, and free of damages before moving out. The landlord may inspect the property before returning the security deposit.
Negotiating Changes to the Rental Agreement
If the tenant wishes to renew the tenancy but wants to negotiate changes to the rental agreement, they should contact the landlord and propose changes. Some common changes that tenants may request include rent reductions, additional amenities such as parking or storage, or changes to lease terms such as the length of the lease or renewal notices.
If the landlord agrees to the changes, they should be added to the rental agreement in writing and signed by both parties. If the landlord refuses to make changes, the tenant can decide whether to renew the tenancy under the same terms or terminate it and look for another property.
Conclusion
Ontario rental agreements after one year require careful consideration and planning. Tenants and landlords must decide whether to renew the tenancy, terminate it, or negotiate changes to the rental agreement. Tenant rights are protected by law, and landlords must follow the proper procedures for terminating a tenancy. Ultimately, communication and negotiation are key to reaching a mutually beneficial agreement for both parties.