A Canadian Month-to-Month Rental Agreement is a periodic tenancy contract between a landlord and tenant that automatically renews at the beginning of each month until either party provides the required written notice of termination. Unlike a fixed-term lease that locks both parties into a set period (typically 6 or 12 months), a month-to-month arrangement provides flexibility for both sides, though provincial tenancy legislation heavily regulates how and when the tenancy can be ended.

Month-to-month tenancies in Canada arise in two ways. First, the parties can expressly agree to a month-to-month tenancy from the outset. Second, and more commonly, a fixed-term lease automatically converts to a month-to-month tenancy when it expires. In Ontario, this conversion is codified in section 38 of the Residential Tenancies Act, 2006 (S.O. 2006, c. 17), which provides that a tenancy continues on a month-to-month basis after the fixed term ends unless the tenant gives proper notice. The landlord cannot require the tenant to sign a new lease or vacate simply because the original term has expired.

Critically, month-to-month tenants in Canada enjoy the same statutory protections as fixed-term lease tenants. In Ontario, the RTA applies equally to both types, meaning rent control, maintenance standards, eviction protections, and deposit limits all remain in effect. The same is true under BC's Residential Tenancy Act (R.S.B.C. 2002, c. 78) and Alberta's Residential Tenancies Act (S.A. 2004, c. R-17.1). This is a significant difference from many U.S. states, where month-to-month tenants may have fewer protections than those with fixed-term leases.

The termination notice requirements for month-to-month tenancies vary considerably across provinces. In Ontario, tenants must provide 60 days' notice ending on the last day of a rental period, while landlords can only terminate for specific statutory grounds. In BC, tenants need one full month's notice, while landlords need two months for personal use (with compensation of one month's rent). Alberta requires one month from the tenant and three months from the landlord for periodic tenancies.

When a tenant is moving to a new city for work or school and needs housing flexibility while determining whether the location is a long-term fit. A month-to-month agreement avoids the commitment of a year-long lease while providing full tenancy protections under provincial law.

When a fixed-term lease has expired and both parties want to continue the rental relationship without signing a new fixed-term agreement. In most provinces, the tenancy converts to month-to-month automatically, but having a written agreement that specifically addresses the month-to-month terms avoids ambiguity about rent payment details, rules, and responsibilities.

When a landlord is planning to sell the property, move in a family member, or undertake major renovations in the near future but needs rental income in the interim. A month-to-month arrangement allows the landlord to provide the required statutory notice when the time comes, without being locked into a long-term lease.

When renting to seasonal workers, contract employees, or anyone whose housing needs are inherently uncertain or temporary. Students studying for a single semester, workers on short-term assignments, and individuals between permanent housing all benefit from the flexibility of a periodic tenancy.

When a tenant wants the ability to relocate on relatively short notice for career opportunities, family reasons, or personal preference, without the financial penalties associated with breaking a fixed-term lease. Under provincial law, the tenant simply needs to provide the required notice period and the tenancy ends cleanly.

Operating without a written month-to-month agreement leaves both parties relying solely on provincial statutory defaults. While these defaults provide basic protections, a written agreement can address practical details such as payment methods, utility responsibilities, parking arrangements, and guest policies that statutes do not cover.

Tenancy Type and Commencement -- Clearly state that the agreement creates a month-to-month periodic tenancy (not a fixed-term lease) and specify the start date. If the tenancy arose from the expiry of a fixed-term lease, reference the original lease and its end date. This establishes the nature of the tenancy and triggers the applicable statutory provisions for periodic tenancies.

Rent and Payment Terms -- The monthly rent amount in Canadian dollars, the due date, the payment method (Interac e-Transfer, cheque, pre-authorized debit, cash, or bank draft), and who rent is payable to. Ontario landlords cannot require post-dated cheques or automatic payments (RTA s. 108). Include a statement that rent increases are governed by provincial guidelines.

Termination Notice -- The required notice periods for both parties, which must meet or exceed provincial statutory minimums. This is the most critical element of a month-to-month agreement because it defines how either party can end the tenancy. The notice must expire on the last day of a rental period in most provinces.

Security Deposit -- The deposit amount and type, complying with provincial maximums. Ontario: last month's rent only. BC: maximum half a month's rent. Alberta: maximum one month's rent. Quebec: no deposit. Include the statutory deadlines for returning the deposit after the tenancy ends.

Landlord Termination Grounds -- A month-to-month tenancy does not give the landlord unlimited ability to terminate. In Ontario, landlords can only evict for grounds specified in the RTA. In BC, landlords must compensate the tenant with one month's rent for personal use termination. The agreement should clearly state these limitations.

Maintenance Obligations -- Provincial law requires landlords to maintain the premises in habitable condition. The agreement should allocate specific responsibilities and require tenants to promptly report repair needs. These obligations continue throughout a month-to-month tenancy just as they would during a fixed-term lease.

Governing Province -- The specific province or territory whose residential tenancy legislation applies, determining deposit limits, rent increase rules, notice periods, and the applicable dispute resolution tribunal.