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Reviewing Legal Agreement

Your Fixed Term Lease Isn't an All Mighty Document that Commands the Tenant to Leave at the expiry!

It may, or may not be surprising, but your Fixed Term Lease is not an almighty document that commands the tenant to leave after the lease expires. Shocking to a lot of Landlords is that your Fixed Term Lease automatically applies month to month after the lease term ends:

38 (1) If a tenancy agreement for a fixed term ends and has not been renewed or terminated, the landlord and tenant shall be deemed to have renewed it as a monthly tenancy agreement containing the same terms and conditions that are in the expired tenancy agreement and subject to any increases in rent charged in accordance with this Act. 2006, c. 17, s. 38 (1).

Now as a Landlord what if you choose not to renew the lease? Many Landlords become horrified when they find out, that after their all-encompassing lease comes to and end, the tenant has the lawful right to remain in the unit.

A lease ending or the landlord’s refusal to renew the lease is not a ground to terminate the tenancy. In fact, the tenant has the right to Security of Tenure which means the tenant can remain in the unit, and only the board has the power to terminate the tenancy in accordance with the Residential Tenancy Act:

Termination only in accordance with Act

37 (1) A tenancy may be terminated only in accordance with this Act. 2006, c. 17, s. 37 (1)

So how does a landlord get rid of a tenant? There are a few applications, but ultimately, the reasons to terminate the tenancy must be in accordance with the Act or by agreement.

No Fault Evictions are generally deemed to be an N12 and an N13 which are two applications that landlords can use to evict the tenant. An N12 is because the landlord wants to use the residence for personal use, or the purchaser wants to use the unit for personal use. An N13 is for demolition of the residential unit (for repairs, the Tenant has the right to come back at the same rent). As you can see, evicting a tenant for no fault for a very specified reason, and the rules must be strictly adhered to. Not renewing the lease is not a reason the board will evict the tenant!

So how does the Landlord Evict when the lease is over? You need a ground in accordance with the act to evict, and an expired lease isn't a lawful ground!

The only other way a landlord can evict a tenant is for tenant behaviors like an N4, N5, N6, N7, or N8 these are specific applications due to a tenant’s behaviour for which if proven, can lead to the termination of the tenancy.

Therefore, just because the lease ends, does not mean that you as the landlord have the right to evict the tenant for simple reasons that you won’t renew the lease.

If you want to end a problematic tenancy, contact me at my offices, and we can talk about some potential solutions.

Jordan Nieuwhof- Paralegal


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