ONT- Buying a property with month to month tenants. New lease?

[Robert Burciul]

Hi friends, 

I’m having a lot of difficulty finding a solid answer on this....

I purchased a property with month to month tenants who have been living in the property for about 5 years. Over those five years they’ve had two landlords and I believe they’ve been on a month to month tenancy since approximately 2014. It’s safe to say that I’ll never see a copy of the original lease and the current property management company is giving me a hard time.. they refuse to give me the rental deposit and instead are insisting on returning it back to the tenants. 

Ideally I would like to have the tenants provide me with a deposit and sign a new lease at an increased rent but i am curious where my rights end and there’s begin. If they are on month to month do they have a right to refuse a new lease? Can I increase the rent more than the the legal minimum if not? And do they have a right to refuse to pay me a deposit on the unit? Since I have no copy of any lease I have nothing to go on. Ontario laws are typically in place to protect tenant rights but I’m having difficulty finding much legislation on this particular issue.