Ontario: Renewing condo lease agreement after 1 year.

Search this thread

Last Updated:
Oct 18th, 2019 10:25 am

Tags:

SCORE

Reply to ThreadReply

Search this thread

Oct 17th, 2019 7:53 pm

happypotato12 [OP]: Newbie; Oct 16, 2019; 1 posts

Oct 17th, 2019 7:53 pm

Ontario: Renewing condo lease agreement after 1 year.

So I have been living in this unit for about a year and I am renewing the lease with my landlord.

First off, my understanding is that the lease will be automatically rolled into monthly basis, so I don't think I really need to sign a new month-to-month lease.

My first question is if the landlord wants to increase monthly payment, shall they send a new lease which states the new payment to tenants or they could just give a notice to tenants?

Anyways, my landlord sent out a new month-to-month lease to me with fixed term for the next 12 month (It states it is fine to terminate the agreement earlier as long as I give a 60 days notice, so I think it is fine), I wonder if this is this same as my original 1 year lease agreement which will also be automatically continued after the next 12 month legally?

Last question is the agreement also mentioned a last month rent as deposit, is it valid? Shall I still give them one extra month as deposit?

Any help would be appreciated!

Thanks!

Last edited by happypotato12 on Oct 17th, 2019 9:38 pm, edited 1 time in total.

3 replies

Oct 17th, 2019 9:36 pm

JayLove06: Deal Guru; Feb 29, 2008; 14464 posts; 10711 upvotes

Oct 17th, 2019 9:36 pm

Are you in Ontario? After the 1st year the lease is month to month. You need to provide 60 days notice. Landlord should be notifying you 3 months in advance of a rent increase and should provide you with a notice of rent increase form.

As for a new lease, it's in your best interest to reject it and go month to month...as it's the law (in Ontario anyways...)

Oct 18th, 2019 10:09 am

_dc_: Sr. Member; Dec 4, 2004; 724 posts; 723 upvotes; GTA

Oct 18th, 2019 10:09 am

You don't have to sign anything. You automatically switch to a month-to-month lease with the same terms you originally signed to.

The landlord is allowed to increase your rent by the guideline amount (1.8% 2019, 2.2% 2020) as long as at least 12 months have passed since the last increase. To do so, the landlord must send you a "Notice of Rent Increase" (Form N1) at least 90 days before the commencement date of the increase. An updated lease agreement is not required to accomplish this.

You would have already paid a last month rent deposit. By law, the landlord must pay annual interest on the deposit equal to the year's guideline rent increase rate (see above). Hence, you DO NOT need to pay any more rent deposit (unless the rent increase is greater than the guideline).

For example, if your original rent was $1000/mo, you would have already paid a $1000 deposit. After 12 months, the landlord is required to pay you 1.8% (2019 guideline rate) interest on that $1000 ($18). He can also increase your rent by 1.8%. So your new rent would be $1018, and your rent deposit would have to be $1018 to cover last month rent. The landlord can then apply the $18 interest to the last month rent deposit you have already paid to automatically increase it to $1018. You don't have to pay any more out of pocket.

Oct 18th, 2019 10:25 am

rob444: Deal Addict; Jan 2, 2012; 4023 posts; 1929 upvotes; Toronto

Oct 18th, 2019 10:25 am

JayLove06 wrote: ↑
As for a new lease, it's in your best interest to reject it and go month to month...as it's the law (in Ontario anyways...)

Isn't it always in the best interest of the tenant to have a fixed lease? This would prevent anyone being able to evict the tenant during this time.

And we all know it's much easier for a tenant to break a lease mid-term vs a landlord trying it, so even if OP wanted to move out earlier they can probably come to some agreement with landlord.

Reply to Thread

Top