Lease Agreements & Renewals in Ontario: A Guide for Rental Property Owners

If you own a rental property in Ontario, lease agreements and renewals can influence rent, vacancy risk, tenant stability, and the amount of follow-up you, as the owner, need to manage. 

This guide breaks down how Del handles new leases, renewal options, rent increases, and owner approvals, along with the Ontario rules that govern the process.

At a Glance: The Main Owner Decisions

Ontario’s standard lease rules and month-to-month continuation rules come from the province and the Landlord and Tenant Board. The owner-approval and document-handling steps come from Del’s process.

How Del Handles New Lease Agreements

The process starts with screening. 

Before a new lease is signed, Del screens the tenant through credit checks, employment verification, references, and rental history. For an owner, that is the first filter. It helps mitigate financial risks and protect your property and the surrounding neighbors. 

Once a suitable tenant is identified, Del confirms the proposed rent directly with the owner. This gives the owner the chance to approve the number based on market conditions, rental goals, or legal limits before anything is sent out.

After that, the lease is prepared and sent digitally through DocuSign. Owners can review the document in the Del Rentals Owner Portal, where lease documents, rent statements, reports, and updates are stored. 

If an owner is new to the platform, Del provides registration steps so access is in place early.

If revisions are needed, Del’s Client Experience Specialist reviews those changes with the owner before the final version goes to the tenant.

What Happens When the First Lease Term Ends

In Ontario, the end of a one-year lease does not usually mean the tenant has to move out. If no new fixed-term agreement is signed, the tenancy typically continues on a month-to-month basis, and the existing lease terms still apply.

From there, the owner generally has two options.

Option 1: Renew for another fixed term

A new one-year term can make sense when the owner wants more stability and less turnover. It can also reduce the chances of having to re-list the unit, coordinate showings, and absorb vacancy or leasing costs again too soon.

Option 2: Let the tenancy continue month to month

A month-to-month lease arrangement gives the owner more flexibility. That can be useful if a sale is being considered, major changes are on the horizon, or the owner simply wants more room to adjust plans without locking into another full term.

Ontario lease renewal options at a glance

If the tenant requests another fixed-term lease, Del checks with the owner first before proceeding.

Rent Increases in Ontario

For many Ontario rental units, annual rent increases are limited by the provincial guideline. For increases taking effect in 2026, that guideline is 2.1%. The province says the guideline applies to most private residential rental units covered by rent control.

Units first occupied for residential use after November 15, 2018, are generally exempt from the annual guideline cap, provided landlords still comply with the legal notice and timing rules.

The province and LTB materials also make clear that a landlord can generally increase rent only once every 12 months and must usually give at least 90 days’ written notice using the proper form.

Rent increase process at Del

• Owner review: Del shares the proposed increase with the owner first.
• Owner approval: Nothing moves forward until the owner confirms the number and approach.
• Tenant notice: Del communicates the increase to the tenant using the proper notice timeline.
• Updated documentation: Once confirmed, the updated agreement and related records are handled digitally through Del’s process.

What the Owner Approves vs. What Del Handles

Conclusion

Ontario lease renewals and agreements are at the heart of rental operations, and by keeping the owner involved in decisions and maintaining organized documents, Del Rentals helps make the process easier for owners. 

Important Note: This is general information based on Ontario’s Residential Tenancies Act (RTA) as of 2026. Rent rules, guidelines, and forms (such as N1 for rent increases) can be updated by the province. For advice specific to your property, we recommend consulting the Landlord and Tenant Board, a licensed paralegal, or a lawyer.