It is not unlawful for the tenants to permit more people to occupy the unit regardless of how many people are named on the lease. However, this number is subject to the occupancy standards set out by municipal bylaws. If the number of people occupying the rental unit on a continuing basis contravenes health, safety or housing standards required by law, you may serve an N5 notice of termination. The tenants can avoid termination if they reduce the number of persons occupying the rental unit to comply with health, safety and housing standards within 7 days according to the N5.