Residential Tenancies: Ending a Tenancy

The Residential Tenancies Act governs the relationship between residential landlords and tenants. The ability for a landlord or tenant to terminate a tenancy is confined to those outlined in the Act

Fixed Term Tenancy Agreement

A landlord and tenant have the option to enter into a fixed term (i.e. 1-year), monthly, weekly or daily tenancy agreement.

It is a common misconception that a fixed term tenancy terminates on the last day of the term and a tenant must vacate unless the parties renew the term. A lease automatically renews on a month-to-month basis following the end of term. As such, a landlord or tenant may terminate a tenancy only in accordance with the Act

Tenants’ Written Notice

A tenant may end a tenancy by providing a landlord with at least 60 days’ written notice. For a fixed term tenancy, the notice cannot be effective before the last day of the fixed term. For example, if the lease provides for a 1-year fixed term, a tenant’s notice must not have an earlier termination date than the last day of the 1-year fixed term.

A tenant does not require a reason to terminate a tenancy but must comply with the proper notice requirements.

Fault vs. No Fault Evictions

The circumstances under which a landlord may provide a notice to terminate a tenancy fall under two categories: fault and no-fault evictions. For fault evictions, a landlord may give notice for non-payment of rent, damage to the rental unit or building and/or substantial interference with the rights or enjoyment of other tenants or the landlord.

For no-fault evictions, a landlord may give notice because they require the unit for themselves, a family member or a purchaser, or they intend to demolish or extensively repair the rental unit. A no-fault eviction notice has strict requirements, such as good faith and payment of compensation. A landlord also cannot provide a termination date earlier than the last day of a fixed term.

If a tenant does not vacate a rental unit in accordance with a notice to end a tenancy, a landlord will be required to apply to the Landlord and Tenant Board to obtain an eviction order.

With any notice provided by a landlord, the notice must be on the applicable Landlord and Tenant Board form, completed properly and served in accordance with the Landlord and

Tenant Board’s Rules. If not, a landlord’s notice may be deemed void and a new notice will be required.

Agreement to End the Tenancy

Since COVID-19, the Landlord and Tenant Board has experienced significant backlog which has caused many to negotiate agreements to end a tenancy instead of waiting for eviction hearings.

The landlord and tenant can agree to end a tenancy at any time, including during a fixed term, by signing an Agreement to End the Tenancy form. The parties may negotiate additional terms, such as a payment in exchange for vacant possession, commonly referred to as ‘cash for keys.’

If you have questions about your rights and obligations under the Residential Tenancies Act, the lawyers at Waterous Holden Amey Hitchon LLP can assist.