Month-to-Month vs Fixed Leases: What’s Best for You?
At LSK Property Management, we often field questions about the differences between month-to-month and fixed-term leases. Understanding these two types of rental agreements is crucial for both landlords and tenants in Ontario. Let’s break down the key aspects of each.
Fixed-Term Leases
A fixed-term lease, typically lasting one year, offers certain advantages and disadvantages:Pros:
- Provides stability for both parties
- Guarantees rent amount for the lease duration
- Offers tenants security against eviction (except for specific legal reasons)
Cons:
- Less flexibility for tenants who may need to move
- Landlords can’t easily adjust rent or terms during the lease period
Month-to-Month Agreements
Month-to-month tenancies offer more flexibility but come with their own set of considerations:Pros:
- Flexibility for tenants to move with 60 days’ notice
- Landlords can more easily make changes or end the tenancy (with proper notice)
Cons:
- Less stability for both parties
- Potential for more frequent tenant turnover
Important Points to Remember
- Automatic Conversion: In Ontario, fixed-term leases automatically convert to month-to-month at the end of the term unless a new agreement is signed.
- Notice Requirements: Landlords must provide 90 days’ notice for rent increases on month-to-month tenancies.
- Eviction Rules: The Residential Tenancies Act protects tenants from unfair eviction in both types of leases.
Choosing the Right Option
- For Landlords: Consider your long-term plans for the property and desired tenant stability.
- For Tenants: Think about your future plans and need for flexibility.
Conclusion
Both month-to-month and fixed-term leases have their place in the rental market. The best choice depends on individual circumstances and preferences.At LSK Property Management, we can help you navigate these decisions and manage your leases effectively. For more information on our lease management services, visit our lease management page or contact us directly.