Month-to-month vs fixed-term lease: what renters should know
Understand fixed-term and month-to-month leases with tips on rent stability, flexibility, security, notice periods, provincial differences, and renter rights.
When you rent in Canada, you'll typically be offered one of two lease types: a fixed-term lease or a month-to-month arrangement. Understanding the difference helps you choose the option that fits your situation and know your rights under each.
What Is a Fixed-Term Lease?
A fixed-term lease runs for a set period, most commonly 12 months. Your rent is locked in for that period and your landlord cannot ask you to leave without legal grounds before the term ends. In most provinces, if neither party gives notice at the end of the term, the lease automatically converts to a month-to-month tenancy.
Note: In Ontario, Bill 60 (passed November 2025) changed this rule. Fixed-term leases in Ontario no longer automatically convert to month-to-month at the end of the term, giving landlords more flexibility to renegotiate or end the tenancy.
What Is a Month-to-Month Tenancy?
A month-to-month tenancy has no fixed end date. Either party can end the tenancy by giving proper written notice, the length of which varies by province. Rent can only be increased once every 12 months with proper notice, subject to provincial rent increase caps where they apply.
Key Differences at a Glance
Fixed-TermMonth-to-Month
Rent stability
Locked in for the term
Can increase with proper notice
Flexibility
Lower — harder to leave early
Higher — easier to end with notice
Security
Higher — landlord can't end tenancy without cause during term
Lower — landlord can end with proper notice
Best for
Renters who want stability
Renters who need flexibility
Which Is Better for Renters?
Fixed-term leases offer more predictability. You know what you're paying and where you're living for the duration of the term. Month-to-month tenancies suit renters who aren't sure how long they'll stay in a city, are between longer-term plans, or want the option to move with relatively short notice.
Provincial Differences Matter
Lease rules vary significantly by province. Notice periods, automatic conversion rules, and tenant protections differ between British Columbia, Ontario, Alberta, Quebec, and Manitoba. Before signing either type of lease, check the rules in your province so you understand what you're agreeing to.