Fixed-term vs month-to-month lease for landlords

Choosing the right lease type affects your flexibility, your cash flow predictability, and your legal obligations. Here's what landlords need to know about both options.

Fixed-Term Leases

A fixed-term lease runs for a set period, typically 12 months. The tenant agrees to stay for that duration and you agree to keep them at the stated rent. You cannot increase rent or ask the tenant to leave without legal grounds before the term ends.

Advantages for landlords:

• Predictable occupancy and income for the lease period
• Reduces turnover and vacancy risk
• Easier to plan maintenance and finances around a known tenancy end date

Disadvantages for landlords:

• Less flexibility if your circumstances change
• If the tenant stops paying or causes problems, you still need to follow the formal eviction process, which takes time regardless of how much of the term remains

Month-to-Month Tenancies

A month-to-month tenancy has no fixed end date. Either party can end the tenancy with proper written notice, the length of which varies by province.

Advantages for landlords:

• More flexibility to end the tenancy or make changes with proper notice
• Useful if you're uncertain about your long-term plans for the property

Disadvantages for landlords:

• Less certainty around occupancy and income
• Tenants can also leave with relatively short notice, which can create unexpected vacancies

What Happens at the End of a Fixed-Term Lease

This varies significantly by province. In British Columbia, a fixed-term lease automatically converts to a month-to-month tenancy at the end of the term unless both parties sign a new lease. In Ontario, Bill 60 (passed November 2025) removed the automatic conversion rule, giving landlords more flexibility to renegotiate terms or end the tenancy at the conclusion of the fixed term. Always check the rules in your province before the lease end date approaches.

Which Is Better for Landlords

For most landlords, a fixed-term lease offers a better balance of stability and protection. Month-to-month arrangements work well for transitional situations, such as renting to a tenant temporarily while you plan renovations or decide what to do with the property.