lease assignment in ontario

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Assign to a new tenant

Question & Answer

Another legal way to move out early is to assign your place to a new tenant.

Assigning means that the new tenant replaces you and takes over your rental agreement. The amount of rent and all other details of the agreement stay the same. You are not responsible if the new tenant causes damage or owes rent. But when you assign, you do not have the right to move back in later.

You must ask your landlord for permission to assign. It is best to ask in writing and keep a copy of your request. Your landlord must answer within 7 days.

If your landlord agrees to let you assign, they are allowed to charge you a fee. The fee can't be more than your landlord had to spend on things like a credit check, and advertising if the landlord found the new tenant.

Your landlord can refuse to let you assign to a particular person if there is a good reason. For example, if the person caused problems for a landlord in the past, such as damaging property or not paying rent.

Write a letter asking to assign

Use this tool to write a letter to your landlord asking if you can assign your unit.

If your landlord won’t let you assign to anyone

If your landlord won't let you assign at all or does not give you an answer within 7 days, you can move out with 30 days' notice .

To do this, give your landlord a Tenant’s Notice to End the Tenancy (Form N9) no later than 30 days after you asked for permission to assign.

In this situation, the usual rules about the timing of your notice do not apply. You can choose any termination date , as long as it is at least 30 days after the day you give your landlord the notice.

You can mail or fax the notice, or give it to your landlord in person. You can also give the notice to your landlord's agent. An agent can be someone who works for your landlord, for example, the superintendent or someone who works in the property manager's office.

NOTE: If you mail the notice you must do this 5 days before the day you need to give it to your landlord.

You might not have a right to assign if you live in

• subsidized housing
• a superintendent's unit
• housing provided by a school where you work or are a student

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Occupancy rules: Guests, roommates, subtenants and lease assignments – Ontario housing law basics 

August 23, 2023

The information on this page outlines rules, renters’ rights and landlords’ responsibilities as laid out in Ontario housing laws such as the Residential Tenancies Act, the Human Rights Code and the Housing Services Act.

Usually, a landlord cannot stop a tenant from hosting guests in their rental unit. In regular tenancies, a tenant has the right to welcome any guest that the tenant wants to visit them in their unit, and for any period of time. If a landlord tries to control which guests a tenant can invite into their home, this may be considered harassment or discrimination .   

However, there are some limits to hosting guests. For example, a tenant is responsible for damage that their guests cause to the rental property or if their guests interfere with the landlord’s or other tenants’ interests in or enjoyment of the rental property. A tenant may also be responsible if they allow anyone to commit any illegal acts at the rental building. In these cases, a landlord will sometimes give a tenant’s guest a trespass notice. Although the tenant is still allowed to have that guest visit them in their own unit (if they want to), that guest is not allowed to go anywhere else in the rental property.  

In subsidized or Rent-Geared-to-Income (RGI) housing, the guest policies vary but tenants are normally not allowed to have long-term guests and there is normally a limit on the number of days that a tenant can host a guest. For more information on guest policies in subsidized housing, a tenant should consult the policies set out by their landlord.  

Typically, a landlord cannot raise rent or charge extra fees when a tenant hosts a guest. Ontario’s Residential Tenancies Act (RTA) prohibits landlords from collecting any refundable or non-refundable fees, except for a previously agreed upon key deposit and/or last month’s rental deposit. However, if a guest damages property, the tenant who invited that guest may be responsible to pay for the damage.   

The rules for tenants in Rent-Geared-to-Income (RGI) housing are different. Each RGI housing provider must have a guest policy which allows guests, but the policy will have limitations on how long a guest may visit. Violating a guest policy in RGI housing could result in a rent increase. For more information on guest policies in RGI housing, a tenant should consult their housing provider’s policies.  

Roommates, occupants, and shared facilities 

A roommate or occupant is a person who has not signed a lease, but who lives in the rental unit with the permission of the tenant. Typically, a landlord cannot raise rent or charge extra fees when a tenant adds a roommate or occupant. Ontario’s Residential Tenancies Act (RTA) prohibits landlords from collecting any refundable or non-refundable fees, except for a previously agreed upon deposit for keys and/or one month’s rent. However, if a guest damages the rental property, the tenant who invited the guest may be responsible for the damage.   

The rules for tenants in Rent-Geared-to-Income (RGI) housing are different. A tenant must inform their RGI housing provider if they would like to have a person staying with them for longer than the housing provider’s policies allow. If the RGI housing provider agrees to allow the tenant to add a roommate, the tenant will likely be required to provide information about the roommate to the RGI housing provider, and their rent will likely increase. Violating these policies in RGI housing could result in a rent increase. Tenants should consult their RGI housing provider’s policies for more information about guest policies.   

Some municipalities set by-laws for the minimum amount of floor area required for each person living in one room. A landlord can apply to evict a tenant for overcrowding a unit if a rental unit has so many occupants that the unit is overcrowded. A tenant should consult their municipal by-laws for more information on what constitutes overcrowding.  

The protections for tenants under Ontario’s Residential Tenancies Act only apply to certain types of situations when the facilities of a unit are shared by multiple people.   

Generally, RTA protections apply to a tenant who rents a bedroom and shares all other facilities of a unit with other tenants who all have their own leases.   

RTA protections do not apply to a tenant who shares a kitchen or a bathroom with the person they rent from – which could include their landlord or another tenant who is the lease holder – or with an immediate family member of the landlord.  

In any situation where a tenant shares facilities with other people, they should seek legal advice to confirm whether the protections of the RTA apply to them. Tenants can also consult Community Legal Education Ontario’s (CLEO) resource for more information about their rights in specific housing situations.  

Tenants who rent a bedroom and share facilities – and who are protected by the RTA – should be aware that:  

• Shared amenities like kitchens, living rooms and bathrooms are considered common areas. If a landlord would like to access these areas, they do not need to provide the tenants with a written notice at least 24 hours before would like to enter the unit. However, the landlord would have to provide 24 hours written notice to enter the tenant’s bedroom.   
• If a landlord rents bedrooms within a unit to different tenants under separate leases, it is unlikely that the tenants will have input on who the landlord permits to live in the other bedrooms.   
• These living arrangements are often called rooming houses. Rooming houses are not permitted in many municipalities. If the municipality learns about a rooming house, for example because someone makes a maintenance complaint to the municipality’s by-law enforcement office, the municipality may order the property owner to stop operating the property as a rooming house. This can put the tenants at risk of eviction. The LTB does not consider whether a unit is permitted, and maintenance complaints can be made to the LTB even when a unit is not permitted in a municipality.  

Subletting 

In Ontario’s Residential Tenancies Act (RTA), subletting happens when a tenant transfers their entire rental unit to another person or group – known as a subtenant – for a specific period of time, and then the tenant later returns to resume living in their unit, and the subtenant moves out. The original lease agreement between the tenant and the landlord remains in effect. This means that the tenant remains responsible to the landlord for paying rent. Typically, a subtenant pays rent to the original tenant during the subtenancy. However, even if the subtenant pays the landlord directly, the tenant is still ultimately responsible for ensuring that the rent is paid to the landlord. The tenant is also responsible for any damage that the subtenant causes to the unit.  

There are some restrictions on subletting a unit. For example, a sublet agreement must specify the time period for the subtenancy. This means that a subtenancy cannot go month-to-month like a tenancy can. Furthermore, a tenant must leave the rental unit while allowing a subtenant to live in the unit. There is no sublet relationship if a tenant does not leave the rental unit while allowing another person to live in the unit. If the tenant lives in the unit at the same time as another person, then that other person is an occupant or a roommate. Read more about the differences between a sublet, an occupant, and a roommate .  

The Residential Tenancies Act (RTA) requires a tenant to get their landlord’s permission to sublet their unit. However, a landlord is not allowed to “arbitrarily” or “unreasonably” stop a tenant from subletting the unit. If a landlord refuses to allow their tenant to sublet their unit, the tenant can apply to the Landlord and Tenant Board (LTB) to determine whether the landlord arbitrarily or unreasonably refused to allow them to sublet.  

If a tenant gives possession of the rental unit to another person without the landlord’s consent, the sublet agreement is not valid at the LTB and the person who has taken possession could be evicted by the landlord.   

Rent-Geared-to-Income (RGI) housing policies normally prevent a tenant from subletting their unit. If an RGI housing provider prohibits subletting, and a tenant sublets their unit anyway, the tenant could be evicted. Tenants who live in RGI housing should consult their housing provider’s policies for more information on subletting.  

A tenant who sublets their unit is still entitled to all the benefits of their tenancy agreement , and they also still hold all the responsibilities of that agreement with their landlord. The tenant is also responsible to ensure that their subtenant upholds all the responsibilities of the tenancy agreement with the landlord . For example, t his means that the tenant is responsible to ensure that the rent is paid to the landlord , and the tenant can apply to evict their subtenant if the subtenant fails to pay the rent.    

During the subtenancy, t he subten ant is entitled to the benefits ou tlined in the sublet agreement a s well as in the RTA . The subtenant is also accountable for any responsibilities described in their sublet agreement that do not conflict with the RTA . Typically, landlords do not have any responsibilities towards the subtenant. However, the landlord continues to have responsibilities towards the tenant when that tenant sublets the rental unit. For example, a landlord should continue to maintain the unit and make repairs during a subtenancy . A subtenant can inform the tenant or the landlord of repairs that are needed.  

Lease assignments

A tenant can “assign” their lease to another person. When a lease is assigned to another person, the original lease agreement ends and a new lease agreement begins. The new lease agreement is between the new tenant (or “assignee”) and the landlord.  

As a result, the original tenant (or “assignor”) will no longer have a right to occupy the unit. The original tenant will not owe any rent that is due after the date that the assignment begins. All of the rights to the unit and the obligations to the landlord become the responsibility of the new tenant. The details of the lease remain the same, including the type of lease (yearly, monthly, weekly, daily, or fixed-term), any included amenities or services, and the amount of rent owed.  

As noted above, if a tenant chooses to sublet their unit, the lease agreement between the original tenant and the landlord continues. The sublet agreement creates a relationship between the tenant and the subtenant. The tenant becomes the subtenant’s landlord. Often, the subtenant pays rent to the tenant and the tenant pays rent to the landlord. If the subtenant is late paying their rent, the tenant will still owe the landlord that rent.  

If a tenant chooses to assign their lease, the new tenant’s lease agreement replaces the original tenant’s lease agreement. The original tenant will owe the landlord rent up until the day before the start date of the assigned lease. At the start date of the assigned lease, the new tenant will owe the landlord rent, and the original tenant will not owe any more. Once the new tenant’s lease begins, the original tenant has no remaining rights to the unit. For example, the original tenant cannot move back into the unit at the end of the new tenant’s assigned lease.  

Section 95 of the RTA describes the rules about lease assignments.  

A tenant must ask for their landlord’s approval to assign their lease. Usually, the tenant is also responsible for finding a new tenant (the assignee) to take over the lease. However, there are some circumstances where the landlord may want to choose the assignee, for example from their building’s waiting list.  

It is up to the tenant to decide whether to ask for their landlord’s approval first and then try to find an assignee, or whether to find an assignee first and then ask for the landlord to approve the assignment and the potential assignee at the same time. Keep in mind that a landlord may refuse to allow the lease assignment and/or refuse to approve a particular assignee suggested by the tenant.  

If a landlord refuses to allow a tenant to assign their lease, the tenant may choose to continue living in the unit and keep their original lease agreement. However, if the tenant would still like to move out, they may end their tenancy by giving the landlord an N9 form called “Tenant’s Notice to End the Tenancy”. The tenant must provide this notice within 30 days of the landlord’s refusal, and they must provide the landlord with at least 30 days’ notice before they intend to move out.   

A landlord has seven days to respond to a tenant’s request to assign their lease. If the landlord has not replied within seven days, the tenant then has 30 days to give the landlord an N9 form to end their tenancy. The tenant must provide the landlord with at least 30 days’ notice before they intend to move out.  

If a landlord consents to a tenant’s request to assign their lease but does not approve the specific assignee chosen by the tenant, the tenant can apply to the Landlord and Tenant Board (LTB). The landlord is not allowed to “unreasonably” or “arbitrarily” refuse an assignee chosen by the tenant. However, if the landlord has a good reason to refuse the request, the tenant will have to find a different assignee.   

If the LTB agrees that the landlord “unreasonably” or “arbitrarily” refused to consent to a particular assignee, the LTB may order that the landlord agree to the assignee, that the landlord agree to a different assignment suggested by the tenant, or that the lease agreement between the tenant and landlord be terminated. If a tenant finds themselves in this situation, they should get legal advice about their options.  

If you need help in your housing, we may be able to assist you.

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Guide to Ontario’s standard lease

A guide, in multiple languages, to help landlords and tenants understand and complete the Standard Form of Lease (standard lease). It also contains information on rental rules, and rights and responsibilities of landlords and tenants under the Residential Tenancies Act .

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About the standard lease.

The standard lease is required for most residential tenancy agreements signed on or after April 30, 2018.

When complete, the standard lease creates a contract between the landlord and tenant. It is also called a residential tenancy agreement.

The standard lease does not apply to care homes, sites in mobile home parks and land lease communities, most social and supportive housing, certain other special tenancies and co-operative housing.

Under the Ontario Human Rights Code , everyone has the right to equal treatment in housing without discrimination or harassment.

A lease cannot take away a right or responsibility under the Residential Tenancies Act (the act)

If you have questions

The Landlord and Tenant Board provides information about landlords and tenants rights and responsibilities under the act (available in English or French). You can contact them Monday to Friday from 8:30 a.m. to 5:00 p.m. by calling:

• Toll-free: 1-888-332-3234
• Tel : 416-645-8080
• Toll-free TTY : 1-800-855-0511

What is in the standard lease

1. parties to the agreement.

This section has the names of the landlord(s) and tenant(s) who are agreeing to the tenancy.

2. Rental unit

This section describes the rental unit that is being rented and address.

The number of parking spaces if any and their location is also described in this section.

If the rental unit is in a condominium:

• it should be indicated in this section
• the tenant is also agreeing to follow the condominium declaration, bylaws, and rules that are provided by the landlord

3. Contact information

This section has the landlord’s address where notices must be sent. If a tenant needs to give a formal notice to the landlord, it should be delivered to this address.

This section also allows the landlord and tenant to agree to receive formal notices by e-mail, and includes a space for both the landlord and the tenant e-mail addresses. Formal notices can only be given by e-mail where allowed by the Landlord and Tenant Board’s rules. You can contact the Landlord and Tenant Board to find out which notices can be sent electronically.

This section also includes a place for the landlord to provide additional contact information for emergencies or day-to-day communication.

4. Term of tenancy agreement

This section has the date that the tenant will have the right to move into the rental unit and the length of time (term) of the tenancy.

The end of an agreement does not mean the tenant has to move out or sign a renewal or new agreement in order to stay. The rules of the agreement will still apply and the tenant still has the right to stay:

• as a monthly tenant, if the agreement was for a fixed term or monthly tenancy,
• as a weekly tenant, if the agreement was for a weekly tenancy, or
• as a daily tenant, if the agreement was for daily tenancy.

This section sets out the total rent (also called the lawful rent).

The total rent is the total of the amounts listed in sub-section 5(b) which includes:

• the base rent for the rental unit
• any separate charges for parking or other services, such as a storage locker or air conditioning, that the landlord provides to the tenant

Any future rent increase will be based on the total rent in sub-section 5(b).

This section also includes when rent must be paid, to whom it must be paid, what methods will be used for payment, and any administrative charges for cheques returned by a financial institution.

6. Services and utilities

This section sets out what services are included or not included in the total rent (lawful rent). This includes both services that are included in the base rent in sub-section 5(a), and services for which the landlord has set out a separate charge in sub-section 5(b) of the standard lease.

In some cases, a landlord and tenant can later agree to add other services in exchange for a rent increase. For example, a landlord and tenant may agree to a seasonal rent increase for additional services of air conditioning or a block heater plug-in, so the tenant can heat up their car engine on cold winter days.

In this section, the landlord and tenant also agree on who is responsible for utilities (electricity, heat, water) at the rental unit.

7. Rent discounts

This section allows a landlord to offer a rent discount.

After the rent discount ends, the tenant must pay the total rent (lawful rent) agreed to in section 5, plus any lawful increases.

8. Rent deposit

In this section, the landlord and tenant agree whether a rent deposit is required, and the amount. The law limits the amount  and how it is to be treated. A rent deposit cannot be used as a damage deposit.

9. Key deposit

In this section, the landlord and tenant agree whether a key deposit is required, and the amount. The law limits the amount and how it is to be treated.

10. Smoking

Under provincial law, smoking is not allowed in any indoor common areas of the building outside of the rental unit. In this section, a landlord and tenant can agree to rules about smoking in the rental unit.

11. Tenants insurance

In this section, a landlord and tenant can agree whether the tenant must have liability insurance. If the landlord asks for proof of coverage, the tenant must provide it.

It is up to the tenant to get contents insurance if they want it.

12. Changes to the rental unit

This section explains that the tenant can install decorative items, such as pictures or window coverings, but that they must have the landlord’s permission to make other changes to the rental unit.

This section cannot be changed. If the landlord and tenant wish to agree to additional details, these can be written out as additional terms in section 15.

13. Maintenance and repairs

This section explains that the landlord must maintain the rental unit and property, but the tenant must repair or pay for any undue damage caused by the tenant or their guests.

The tenant is responsible for keeping the unit clean, unless the landlord agreed to do so.

14. Assignment and subletting

This section explains that the tenant needs the landlord’s permission to assign or sublet the unit to someone else, and that the landlord cannot arbitrarily or unreasonably withhold consent.

15. Additional terms

The landlord and tenant can agree to additional terms that are specific to the tenancy. If agreed to, these additional rules or terms must be attached to the lease agreement.

These additional terms should be written in plain language and clearly set out what the landlord or tenant must or must not do to comply with the term. If typed, the additional terms should be in a font size that is at least 10 points.

Additional terms may set out rules that are very specific to the rental unit or property, such as rules about the use of common spaces or amenities.

Any extra term which attempts to take away a right or responsibility under the act is void (not valid or legally binding) and cannot be enforced. Some examples of void and unenforceable terms include those that:

• do not allow pets (however, the landlord can require the tenant to comply with condominium rules, which may prohibit certain pets)
• do not allow guests, roommates, any additional occupants
• require the tenant to pay deposits, fees or penalties that are not permitted under the act ( e.g. , damage or pet deposits, interest on rent arrears)
• require the tenant to pay for all or part of the repairs that are the responsibility of the landlord

The landlord and tenant may want to get legal advice before agreeing to any additional terms.

16. Changes to this agreement

This section explains that any changes to the agreement must be agreed to in writing.

17. Signatures

In this section, the landlord and the tenant indicate that they agree to follow the terms of the agreement. If there is more than one tenant, each tenant is responsible for all tenant obligations, including the full amount of rent.

All landlords and tenants listed in section one (parties to the agreement) must sign this section. The landlord(s) or tenant(s) can sign the lease electronically if they both agree. The landlord must give a copy of the agreement to the tenant within 21 days after the tenant signs it.

Landlord and tenant rights and responsibilities

Some additional information about your rights and responsibilities (such as maintenance and repairs) are included in the multilingual guides and in the appendix of the standard lease .

Guide to the standard lease in other languages

• عربي (Arabic PDF )
• 中文 (简体) (Chinese (Simplified) PDF )
• 中文 (繁體) (Chinese (Traditional) PDF )
• فارسی (Farsi PDF )
• Deutsch (German PDF )
• ελληνικά (Greek PDF )
• ગુજરાતી (Gujarati PDF )
• हिन्दी (Hindi PDF )
• Italiano (Italian PDF )
• 한국어 (Korean PDF )
• Polski (Polish PDF )
• Português (Portuguese PDF )
• ਪੰਜਾਬੀ (Punjabi PDF )
• Română (Romanian PDF )
• русский (Russian PDF )
• Español (Spanish PDF )
• Tagalog (Filipino PDF )
• தமிழ (Tamil PDF )
• Українська (Ukrainian PDF )
• اردو (Urdu PDF )
• Tiếng Việt (Vietnamese PDF )

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Home Legal Answers Landlord and Tenant Residential Landlords and Tenants Subletting or assigning a lease

A tenant with a lease is responsible for paying the rent up-to the end of the lease. Tenants who want to move out before the end of the lease, normally have the option to sublet or assign their unit, which means the new tenant will be responsible to pay rent for the remaining months of the lease. If you are having trouble with your tenant or your landlord and would like help, call a lawyer now.

Subletting rules

If the tenant only wants to move out temporarily they can arrange to sublet their unit. Subletting occurs when a tenant rents out their unit to another person, called a subtenant, for a period that is less than the length of the lease. If a tenant rents on a month-to-month basis, they can only sublet the unit for less than one month and not for any longer period, or the tenant and the subtenant may lose their rights to the unit. With a sublet, the original tenant is responsible for all the terms under the lease and must collect the rent from the subtenant, and ensure it is paid to the landlord.

If a tenant wants to sublet their unit, they require the landlord’s written approval. Landlords are not allowed to unreasonably refuse a request for a sublet. This means that if a landlord decides to refuse a subtenant, he or she must have a good reason for doing so. Further, if the landlord refuses to allow the tenant to sublet the unit, or does not reply to the request within seven days, the tenant can apply to the Landlord and Tenant Board to determine if the sublease should be allowed.

Assigning a lease: transferring it to someone new

If a tenant wants to move out before the lease expires and does not plan to return, he or she can assign the lease to another person, who will then become the tenant. Assigning a lease transfers all the tenant’s rights and obligations to another person. The new tenant, called the assignee, will be required to pay the same rent that the original tenant was paying, and the terms of the original lease will apply.

If a tenant wants to assign a lease, he or she is first required to make a written request for the landlord’s approval. As with a sublet, the landlord cannot unreasonably refuse consent to an assignment. If the landlord refuses or does not reply within seven days of the tenant’s request, the tenant has two choices: end the lease or apply to the Board to approve the assignment. If the tenants want to end the lease, they have 30 days from the day the assignment request was made to give notice to the landlord. The notice must be 30 days before the tenant will move, which is normally the last day of the month.

Subletting or assigning a lease without the landlord’s permission

If a tenant sublets or assigns their unit without first getting consent from the landlord, it is considered an unauthorized assignment or sublet. When this happens, a landlord can file an application with the Board to evict both the tenant and the unauthorized occupant. However, if the landlord fails to file the application within 60 days of discovering the unauthorized occupant, the unauthorized occupant will become a tenant.

To apply to the Board to have a sublet or assignment approved, tenants must submit the appropriate form together with a small application fee. A copy of these forms must then be delivered to the landlord. To obtain forms or for additional information on sublets and assignments, visit the Landlord and Tenant Board  website.

Help for Tenants

A criminal record  will affect your ability to be approved for a residential lease. To erase your criminal record, learn more at Pardon Partners. It’s easier than you think.

If you are a Tenant , you can add your monthly rent payment to your credit report using FrontLobby. This can:

• Contribute to improving your credit score (Renters have reported 33pts to 84pts jumps)
• Help establish a positive credit history with a new rent tradeline
• Improve your access to credit related rewards (better bank loans, credit cards, mortgage rates)

Help for Landlords & Property Managers

For legal advice and assistance with a residential tenancy and applications to the Landlord and Tenant Board, contact our preferred Landlord and Tenant experts Nicola (Nick) Giannantonio Legal Services .

If you are a Landlord or Property Manager , you can report rent payments to Credit Bureaus and screen Tenants using FrontLobby. This can:

• Attract financially responsible applicants interested in building credit with their rent
• Decrease rent delinquencies (Landlords have reported 92% reductions) and recover unpaid rent
• Reduce Tenant turnover and improve monthly cash flow

Get legal help

If you are having trouble with your tenant or your landlord and would like help, call a lawyer now.

ASK an Expert

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Residential Tenancies Act Part VI

Assignment, subletting and unauthorized occupancy, assignment of tenancy.

95. (1) Subject to subsections (2), (3) and (6), and with the consent of the landlord, a tenant may assign a rental unit to another person. 2006, c. 17, s. 95 (1).

Landlord's options, general request

(2) If a tenant asks a landlord to consent to an assignment of a rental unit, the landlord may,

(a) consent to the assignment of the rental unit; or

(b) refuse consent to the assignment of the rental unit.

2006, c. 17, s. 95 (2).

Landlord's options, specific request

(3) If a tenant asks a landlord to consent to the assignment of the rental unit to a potential assignee, the landlord may,

(a) consent to the assignment of the rental unit to the potential assignee;

(b) refuse consent to the assignment of the rental unit to the potential assignee; or

(c) refuse consent to the assignment of the rental unit.

2006, c. 17, s. 95 (3).

Refusal or non-response

(4) A tenant may give the landlord a notice of termination under section 96 within 30 days after the date a request is made if,

(a) the tenant asks the landlord to consent to an assignment of the rental unit and the landlord refuses consent;

(b) the tenant asks the landlord to consent to an assignment of the rental unit and the landlord does not respond within seven days after the request is made;

(c) the tenant asks the landlord to consent to an assignment of the rental unit to a potential assignee and the landlord refuses consent to the assignment under clause (3) (c); or

(d) the tenant asks the landlord to consent to an assignment of the rental unit to a potential assignee and the landlord does not respond within seven days after the request is made.

2006, c. 17, s. 95 (4).

(5) A landlord shall not arbitrarily or unreasonably refuse consent to an assignment of a rental unit to a potential assignee under clause (3) (b). 2006, c. 17, s.95 (5).

(6) Subject to subsection (5), a landlord who has given consent to an assignment of a rental unit under clause (2) (a) may subsequently refuse consent to an assignment of the rental unit to a potential assignee under clause (3) (b). 2006, c. 17, s. 95 (6).

(7) A landlord may charge a tenant only for the landlord's reasonable out-of-pocket expenses incurred in giving consent to an assignment to a potential assignee. 2006, c. 17, s. 95 (7).

Consequences of assignment

(8) If a tenant has assigned a rental unit to another person, the tenancy agreement continues to apply on the same terms and conditions and,

(a) the assignee is liable to the landlord for any breach of the tenant�s obligations and may enforce against the landlord any of the landlord�s obligations under the tenancy agreement or this Act, if the breach or obligation relates to the period after the assignment, whether or not the breach or obligation also related to a period before the assignment;

(b) the former tenant is liable to the landlord for any breach of the tenant�s obligations and may enforce against the landlord any of the landlord�s obligations under the tenancy agreement or this Act, if the breach or obligation relates to the period before the assignment;

(c) if the former tenant has started a proceeding under this Act before the assignment and the benefits or obligations of the new tenant may be affected, the new tenant may join in or continue the proceeding.

2006, c. 17, s. 95 (8).

Application of section

(9) This section applies with respect to all tenants, regardless of whether their tenancies are periodic, fixed, contractual or statutory, but does not apply with respect to a tenant of superintendent's premises.� 2006, c. 17, s. 95 (9).

Tenant's notice to terminate, refusal of assignment

96. (1) A tenant may give notice of termination of a tenancy if the circumstances set out in subsection 95 (4) apply. 2006, c. 17, s. 96 (1).

(2) The date for termination specified in the notice shall be at least a number of days after the date of the notice that is the lesser of the notice period otherwise required under this Act and 30 days. 2006, c. 17, s.96 (2).

Subletting rental unit

97. (1) A tenant may sublet a rental unit to another person with the consent of the landlord. 2006, c. 17, s. 97 (1).

(2) A landlord shall not arbitrarily or unreasonably withhold consent to the sublet of a rental unit to a potential subtenant. 2006, c. 17, s. 97 (2).

(3) A landlord may charge a tenant only for the landlord's reasonable out-of-pocket expenses incurred in giving consent to a subletting. 2006, c. 17, s. 97 (3).

Consequences of subletting

(4) If a tenant has sublet a rental unit to another person,

(a) the tenant remains entitled to the benefits, and is liable to the landlord for the breaches, of the tenant's obligations under the tenancy agreement or this Act during the subtenancy; and

(b) the subtenant is entitled to the benefits, and is liable to the tenant for the breaches, of the subtenant's obligations under the subletting agreement or this Act during the subtenancy.

2006, c. 17, s. 97 (4).

Overholding subtenant

(5) A subtenant has no right to occupy the rental unit after the end of the subtenancy. 2006, c. 17, s. 97 (5).

(6) This section applies with respect to all tenants, regardless of whether their tenancies are periodic, fixed, contractual or statutory, but does not apply with respect to a tenant of superintendent's premises. 2006, c. 17, s. 97 (6).

Tenant application

98. (1) A tenant or former tenant of a rental unit may apply to the Board for an order determining that the landlord has arbitrarily or unreasonably withheld consent to the assignment or sublet of a rental unit to a potential assignee or subtenant. 2006, c. 17, s. 98 (1).

Time limitation

(2) No application may be made under subsection (1) more than one year after the day the alleged conduct giving rise to the application occurred. 2006, c. 17, s. 98 (2).

Order re assignment, sublet

(3) If the Board determines that a landlord has unlawfully withheld consent to an assignment or sublet in an application under subsection (1), the Board may do one or more of the following:

1. Order that the assignment or sublet is authorized.

2. Where appropriate, by order authorize another assignment or sublet proposed by the tenant.

3. Order that the tenancy be terminated.

4. Order an abatement of the tenant�s or former tenant�s rent.

2006, c. 17, s. 98 (3).

(4) The Board may establish terms and conditions of the assignment or sublet. 2006, c. 17, s. 98 (4).

(5) If an order is made under paragraph 1 or 2 of subsection (3), the assignment or sublet shall have the same legal effect as if the landlord had consented to it. 2006, c. 17, s. 98 (5).

Eviction with termination order

(6) If an order is made terminating a tenancy under paragraph 3 of subsection (3), the Board may order that the tenant be evicted, effective not earlier than the termination date specified in the order. 2006, c. 17, s.98 (6).

Tenant's notice, application re subtenant

99. The following provisions apply, with necessary modifications, with respect to a tenant who has sublet a rental unit, as if the tenant were the landlord and the subtenant were the tenant:

1. Sections 59 to 69, 87, 89 and 148.

2. The provisions of this Act that relate to applications to the Board under sections 69, 87, 89 and 148.

2006, c. 17, s. 99.

Unauthorized occupancy

100. (1) If a tenant transfers the occupancy of a rental unit to a person in a manner other than by an assignment authorized under section 95 or a subletting authorized under section 97, the landlord may apply to the Board for an order terminating the tenancy and evicting the tenant and the person to whom occupancy of the rental unit was transferred. 2006, c. 17, s. 100 (1).

(2) An application under subsection (1) must be made no later than 60 days after the landlord discovers the unauthorized occupancy. 2006, c. 17, s. 100 (2).

Compensation

(3) A landlord who makes an application under subsection (1) may also apply to the Board for an order for the payment of compensation by the unauthorized occupant for the use and occupation of the rental unit, if the unauthorized occupant is in possession of the rental unit at the time the application is made. 2006, c. 17, s. 100 (3).

Application of s. 87 (5)

(4) Subsection 87 (5) applies, with necessary modifications, to an application under subsection (3). 2006, c. 17, s. 100 (4).

101. (1) If a subtenant continues to occupy a rental unit after the end of the subtenancy, the landlord or the tenant may apply to the Board for an order evicting the subtenant. 2006, c. 17, s.101 (1).

(2) An application under this section must be made within 60 days after the end of the subtenancy. 2006, c. 17, s. 101 (2).

Compensation, overholding subtenant

102. A tenant may apply to the Board for an order for compensation for use and occupation by an overholding subtenant after the end of the subtenancy if the overholding subtenant is in possession of the rental unit at the time of the application. 2006, c. 17, s. 102.

Compensation, unauthorized occupant

103. (1) A landlord is entitled to compensation for the use and occupation of a rental unit by an unauthorized occupant of the unit. 2006, c. 17, s. 103 (1).

Effect of payment

(2) A landlord does not create a tenancy with an unauthorized occupant of a rental unit by accepting compensation for the use and occupation of the rental unit, unless the landlord and unauthorized occupant agree otherwise. 2006, c. 17, s. 103 (2).

Miscellaneous new tenancy agreements

Assignment without consent.

104. (1) If a person occupies a rental unit as a result of an assignment of the unit without the consent of the landlord, the landlord may negotiate a new tenancy agreement with the person. 2006, c. 17, s. 104 (1).

(2) If a subtenant continues to occupy a rental unit after the end of the subtenancy and the tenant has abandoned the rental unit, the landlord may negotiate a new tenancy agreement with the subtenant. 2006, c. 17, s. 104 (2).

Lawful rent

(3) Sections 113 and 114 apply to tenancy agreements entered into under subsection (1) or (2) if they are entered into no later than 60 days after the landlord discovers the unauthorized occupancy. 2006, c. 17, s. 104 (3).

Deemed assignment

(4) A person's occupation of a rental unit shall be deemed to be an assignment of the rental unit with the consent of the landlord as of the date the unauthorized occupancy began if,

(a) a tenancy agreement is not entered into under subsection (1) or (2) within the period set out in subsection (3);

(b) the landlord does not apply to the Board under section 100 for an order evicting the person within 60 days of the landlord discovering the unauthorized occupancy; and

(c) neither the landlord nor the tenant applies to the Board under section 101 within 60 days after the end of the subtenancy for an order evicting the subtenant.

2006, c. 17, s. 104 (4).

Back to the Ontario Residential Tenancies Act index page

Lease Assignment Agreement Ontario: Everything You Need to Know

• November 2, 2022

The Ins and Outs of Lease Assignment Agreement in Ontario

Lease assignment Ontario complex confusing individuals businesses. Understanding knowledge, navigating intricacies lease assignments easier. Blog post, explore aspects lease assignment Ontario valuable insights landlords tenants.

Understanding Lease Assignment Agreement

Lease assignment occurs tenant transfers lease agreement party, assignee. Transfer effectively assignee responsible fulfilling terms conditions lease. In Ontario, lease assignments are governed by the Residential Tenancies Act and the Commercial Tenancies Act, which outline the rights and obligations of both landlords and tenants in the assignment process.

Key Elements of Lease Assignment Agreements

When entering into a lease assignment agreement in Ontario, it`s crucial to consider the following key elements:

Benefits and Considerations for Landlords and Tenants

Both landlords and tenants can benefit from lease assignment agreements, but it`s essential to weigh the advantages and potential considerations:

Case Studies and Legal Precedents

Several legal cases in Ontario have set important precedents for lease assignment agreements, shaping the rights and obligations of landlords and tenants. Example, case Smith Jones (2017) , Ontario Court Appeal ruled landlord unreasonably withhold consent lease assignment.

Consulting Legal Professionals

Given the complexities of lease assignment agreements in Ontario, it`s highly advisable for landlords and tenants to seek legal counsel before entering into such arrangements. Legal professionals can provide valuable guidance and ensure that all parties` rights are protected throughout the assignment process.

Lease assignment agreements in Ontario demand careful consideration and adherence to legal requirements. By understanding the key elements, benefits, and considerations involved, landlords and tenants can navigate the assignment process with confidence and clarity.

Lease Assignment Agreement Ontario

This Lease Assignment Agreement (the “Agreement”) is made and entered into as of [Date], by and between [Assignor Name] (the “Assignor”) and [Assignee Name] (the “Assignee”).

WHEREAS, Assignor is the current tenant of the premises located at [Address], pursuant to a lease agreement dated [Date] with [Landlord Name] (the “Landlord”); and

WHEREAS, Assignee desires to assume all of the Assignor`s rights and obligations under the lease, and Assignor desires to assign such rights and obligations to Assignee;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

[Assignor Name]

_____________________________

[Assignee Name]

Unraveling the Intricacies of Lease Assignment Agreement Ontario

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Assignment of Lease Agreement Ontario: Legal Process & Requirements

The ins and outs of assignment of lease agreement in ontario.

As a law enthusiast, there`s something fascinating about the intricacies of lease agreements. Assignment of Lease Agreement Ontario, particular, topic piqued interest quite time. Delve details explore complexities subject.

Understanding Assignment of Lease Agreement

In the realm of real estate, a lease agreement plays a crucial role in determining the rights and responsibilities of both landlords and tenants. In the context of Ontario, the assignment of lease agreement refers to the transfer of a tenant`s rights and obligations under the lease to a new tenant.

When it comes to assigning a lease agreement in Ontario, there are specific legal requirements and considerations that must be taken into account. Take closer look key points:

Case Studies and Statistics

To gain deeper understanding topic, examine real-life Case Studies and Statistics related assignment lease agreements Ontario:

According to a study conducted by the Ontario Landlord and Tenant Board, approximately 20% of lease assignments result in disputes between the original and new tenants.

In a notable case in Ontario, a landlord refused to consent to an assignment of lease, leading to a legal battle that lasted over a year and resulted in significant financial implications for all parties involved.

Expert Insights

I had the opportunity to speak with a seasoned real estate lawyer who provided valuable insights into the assignment of lease agreements in Ontario. According to the expert, the key to a successful lease assignment lies in thorough due diligence and clear communication between all parties.

“From a legal standpoint, it`s crucial for tenants to fully understand their rights and obligations before seeking to assign a lease,” the lawyer emphasized. “Likewise, landlords must approach lease assignments with caution and ensure that the process complies with the legal framework.”

Final Thoughts

Exploring nuances Assignment of Lease Agreement Ontario truly enriching experience. From navigating legal requirements to understanding real-world implications, it`s evident that this topic carries significant weight in the realm of real estate law.

As I continue my journey in the field of law, I look forward to delving deeper into complex topics such as this, gaining a deeper understanding of the legal intricacies that shape our society.

Top 10 Legal Questions about Assignment of Lease Agreement in Ontario

Assignment of lease agreement ontario.

This Assignment of Lease Agreement (“Agreement”) is entered into on this [Date] by and between the Assignor and the Assignee, collectively referred to as the “Parties.”

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Step 3: Signing a lease

What is a lease? 

A lease is a binding contract granting use or occupation of property during a specified period in exchange for a specified rent. Typically, a lease is one year in length.

Starting April 30, 2018, landlords of most private residential rental units – from individual landlords to property management companies – must use the standard lease template for all new leases. 

Landlord and tenant rights and responsibilities remain the same under the Residential Tenancies Act, 2006 (RTA). 

Download a  copy of the standardized lease agreement .

For more information, visit the  Government of Ontario, Ministry of Municipal affairs and housing . The Region of Waterloo Tip Sheet also explains what to look for in a lease or rental agreement. 

Purpose of the standard lease

The standard lease uses easy-to-understand language to help: 

• landlords and renters understand their rights and responsibilities
• reduce illegal terms in leases and misunderstandings caused by verbal tenancy agreements
• reduce the need for Landlord and Tenant Board hearings to resolve disputes

Who signs the lease? 

• Carefully consider other tenants included in the lease.
• Any tenant who signs the lease may be jointly or solely responsible for the entire rent of the unit. Most landlords will allow you to sign separate leases for a single room within a unit, thus if other tenants miss their rental payments, you are not responsible for covering their missed payments.
• When you sign a lease, you are making yourself liable for rent each month until the lease ends, regardless of whether you live in the unit for the full lease period. If you plan to leave your housing unit for a period of time, you should sublet or negotiate with the landlord for a shorter term.
• When leaving, you must give 60 days written notice to your landlord. Subletting entails having someone else live in your unit for part of your lease term. You must ask permission from your landlord to sublet. Your landlord cannot reasonably refuse your sublet request; otherwise you can have your lease terminated.

Negotiating the lease

A contract is an agreement between two or more people to do something and a statement of their respective responsibilities and rights in doing it. 

Most landlords use lengthy written leases containing clauses designed to protect and benefit themselves, but if you are careful, respectful, assertive, and prepared, you can sometimes get a better deal for yourself. 

• Take time to read the lease carefully before you sign it.
• Ask about any clauses you do not understand. Be sure you understand the explanation completely. You will not be excused from honouring the lease simply because you did not understand what the terms meant.
• Standard leases are typically 1-year in length.
• If you and the landlord agree to change or add to the lease, make sure both of you initial each change on the lease, or that your new agreement is written down and signed by both of you. Not only will the validity of any changes to the lease be in question if they are not put into writing and signed by both parties, but it may be very difficult to prove that those changes were ever made.
• Make sure when negotiating you understand if you need to move-out at the end of your lease or have the option/are required to renew. 
• Once you have signed the lease, be sure to get a copy for yourself.

The Region of Waterloo provides a comprehensive sheet to navigating missed rent payments and negotiating with your landlord.

Terminating your lease

Terminating partway through the lease term 

Terminating a lease is not a simple process. Once you and your landlord sign a lease, it is a legally binding contract and both parties have to agree to terminate the lease for that to take effect. It is usually only in exceptional circumstances that it becomes easier to break a lease, and even then it is usually after much deliberation and communication with your landlord that you both mutually choose to terminate a lease prior to the end of the tenancy. 

If you would like to terminate your agreement early, the best course of action is to notify your landlord and see if they are willing to let you do so. They don’t have to agree to break the lease.  

Please note that you have signed a legally binding document, in which you have agreed to live there for a specified period. As such, you will be responsible for any penalties that come with early termination. The last month’s rent should be applied toward your last month living in the unit, but it is up to the landlord’s discretion whether you will be responsible for paying for the remaining months (even if you don’t live there). 

If you are not going to live in your leased space for the full duration of the lease, you have the option is to sublet your unit.  

If you want to legally terminate the lease without the risk of any repercussions (ie. court), and your landlord is not willing to do so, the  Landlord and Tenant Board  has a few different forms that you could submit that result in a hearing that could end with the tenancy terminated.

For a printable resource download the " terminating your lease partway through your lease term " information tip sheet. 

Terminating a lease at the end of your tenancy 

If you wish to terminate your tenancy, the first step is to be informed and have a read through your lease agreement. Any information on termination is usually written in the lease. 

Unless otherwise stated, the tenant must give the landlord a minimum of 60 days’ notice prior to the end of the tenancy period to terminate their lease. The end of your tenancy period must be on the last day of the lease. Although not required, it is becoming more common that landlords will request more than 60 days' notice to terminate a tenancy (sometimes even 7 or 8 months!).  

Be mindful of leases that are one year may automatically renew for a second year if you don’t give the proper notice of termination. If you missed the early termination date, talk with your landlord in how you may be able to end your lease or find a sublet for your place. 

A fixed term tenancy is one where both landlord and tenant agree that the tenancy will last for a specific period of time. Most student leases in Waterloo are for fixed term tenancies. 

Lastly, when terminating, it is important to complete the necessary paperwork. Your landlord should provide you with a termination form. It is best that both parties sign something formal. If your landlord does not provide you with a Notice to Terminate Tenancy form, you can find one on the  Landlord and Tenant Board website (Form N9) .

Check out this "What You Need to Know About Notice Periods" tip sheet from the Region of Waterloo to understand the information that you need to know about notice periods and moving out of your rental housing. 

For a printable resource download the " terminating your lease towards the end of your tenancy " information tip sheet. 

Questions to ask before signing a lease

To ensure you make an informed decision about your rental housing, it’s essential to ask landlords important questions. Here’s a comprehensive list to guide your discussion: 

Questions to ask your landlord

Lease terms.

• What is the duration of the lease?
• How does the lease renewal process work?

Security deposit

What is the amount of the security deposit?

• How and when will it be returned? 

Emergency contact

• What are the emergency contacts?
• How are maintenance and repair requests handled?

Communication

• What is your preferred method of communication?
• How can tenants reach the landlords for non-emergency matters?
• Is subleasing allowed?
• What are the procedures?
• What furnishings are included in the rental?
• Are there shared amenities, like laundry or parking?

Rent and utilities

• What is the monthly rent?
• What amenities are included in the rent? (e.g. electricity, water, internet, etc.) 

Guest policies

• What are the rules to have guests over?
• Are there any restrictions on overnight guests?

Neighbourhood safety

• What measures are taken to ensure the safety of residents in the neighbourhood?

Lease termination policy

• What is the notice period to terminate the lease?
• What are the penalties for breaking the lease?

TIP: Refer to this guide about talking to landlords effectively (in-person or on telephone) 

Note: A landlord may ask you to sign a lease for a longer duration, but you don’t have to. In Ontario, the Residential Tenancies Act (RTA), 2006 sets out rules and responsibilities about what a landlord can and cannot require of a renter in private market rental housing. 

TIP: The Region of Waterloo Worksheet makes reviewing and summarizing your lease easier. 

Here are some additional resources that outline your tenant rights and responsibilities: 

Residential Tenancies Act  

Subletting:  Due to the co-op work terms outside of the region, subletting is common for Waterloo students. You should be aware of the legal issues with subletting that are part of the Residential Tenancies Act . Students should be aware that as the tenant, you are able to sublet your accommodation with the consent of the landlord.  The landlord should be reasonable when offering consent. If you choose to sublet your space, you remain responsible for the lease. This can put students in difficult situations if the subtenant does not follow the obligations of the lease. When signing a lease, consider your plans for your work term whenever possible.

Note: If you are living with your landlord or their immediate family member, you are in a boarding agreement. You are not protected under the Residential Tenancies Act. 

Landlord and Tenant Board

Rental scams 

Verify the property on google and consider asking your landlord for proof of ownership 

Don’t provide any payment before signing your lease  

TIP: In Ontario landlords may only ask for an advance deposit of one month's rent to be applied as last month's rent and a refundable key deposit (this is the amount it would cost to replace the key). It is not legal to ask for cleaning fees, application fees, security deposits, damage deposits, holding fees. This is for all agreements covered under RTA. 

Do your research on neighborhoods and what the average cost in the area is. Keep your guard up and use common sense.  

Check the place out even if it’s a virtual live viewing 

See this infographic from Advocacy Centre for Tenants Ontario outlining scams to learn how to spot the most common scams 

If you are concerned that a listing may be a scam, this "how to spot a rental scam" resource has tips to help you identify if it is safe. 

The difference between Subtenancy and a Lease Assignment

Lease Assignment

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As an Ontario landlord, you have rights and responsibilities when it comes to subletting and assignments of leases by your tenants. Understanding how to manage these situations is crucial to maintaining control over your property and ensuring that the lease terms are followed. In this article, we’ll explore the key considerations and steps for handling unauthorized subletting and assignments in Ontario.

Understanding Subletting and Assignments

Subletting occurs when a tenant rents out part or all of their rental unit to another party, known as a subtenant, while they are still bound by the original lease agreement with the landlord. In this arrangement, the original tenant essentially becomes a landlord to the subtenant.

Lease Agreement Terms

Lease agreements in Ontario should include specific clauses related to subletting and assignments. These clauses outline the conditions under which a tenant can seek your consent for subletting or assigning the lease. Be sure to include provisions that clearly state your expectations and the tenant’s obligations in such situations.

Tenant Obligations

In Ontario, tenants are responsible for adhering to the terms of their lease agreements, including those pertaining to subletting and assignments. Tenants should seek your written consent and follow the procedures outlined in the lease agreement when considering subletting or assigning their lease.

The Role of Landlord Consent

It’s important to understand that in Ontario, landlords are legally obligated to provide written consent for subletting or assigning a lease. The Residential Tenancies Act (RTA) specifies that you cannot unreasonably withhold consent. This means that while you have the right to assess potential subtenants or assignees, you must have a valid reason for refusing consent.

The Consent Process

Tenants seeking to sublet or assign their lease must follow a specific process. They should provide a written request to you, the landlord, which includes details about the proposed subtenant or assignee, such as their rental history, references, and any other information you require according to the lease agreement.

Assessing Subtenants and Assignees

When assessing potential subtenants or assignees, landlords should conduct due diligence to determine their suitability. This includes reviewing their rental history, financial stability, and references. It’s essential to ensure that the proposed subtenant or assignee is capable of meeting their financial obligations and respecting the terms of the lease.

Reasons for Refusal

While you cannot unreasonably withhold consent, there are valid reasons for refusing consent. These may include concerns about the proposed subtenant’s ability to pay rent, their rental history, or their suitability for the property based on the lease agreement’s terms and conditions.

Legal Process for Disputes

In situations where disputes arise regarding subletting or assignments, either the tenant or the landlord can seek resolution through the Landlord and Tenant Board (LTB) in Ontario. The LTB provides a formal process for addressing disputes and ensuring that both parties’ rights are protected.

Consequences of Unauthorized Subletting

Tenants who sublet or assign their lease without proper consent may face serious consequences, including eviction. It’s crucial for tenants to understand that unauthorized subletting or assignments can lead to the termination of their tenancy and legal repercussions.

Preventing Unauthorized Subletting and Assignments

Open and clear communication between landlords and tenants is key to preventing unauthorized subletting and assignments. Encourage tenants to discuss their intentions with you before taking any action to ensure they understand the process and legal requirements.

Lease Enforcement

Landlords can enforce lease terms related to subletting and assignments to maintain control over their properties. This may include taking legal action against tenants who violate the terms of the lease by subletting or assigning without consent.

Seeking Legal Counsel

In complex subletting or assignment situations, it’s advisable for both landlords and tenants to seek legal counsel. Legal professionals can provide guidance on navigating the legal framework and ensuring that their rights are protected throughout the process.

Handling unauthorized subletting and assignments in Ontario requires a thorough understanding of the laws and regulations governing these matters. As a landlord, you have rights and responsibilities, and by following the proper procedures and maintaining effective communication with your tenants, you can manage these situations effectively and protect your property investment.

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Sublease or Assignment: ONCA Interprets Section 3 of the Ontario Commercial Tenancies Act in V Hazelton Limited v. Perfect Smile Dental Inc.

Practical law canada legal update w-021-2454  (approx. 7 pages), factual context, relief sought by head tenant: head lease was properly renewed, head landlord's defence: head lease had expired.

• The sublease to Chaves was actually an assignment because V Hazelton leased the premises to Chaves for the entire balance of the head lease term (or did not reserve the last day for itself). As of the assignment, V Hazelton did not have a landlord-tenant relationship with Perfect Smile which could be renewed.
• The renewal clause in the head lease was void for uncertainty and unenforceable because it did not set out a specific renewal rental rate and didn't give an arbitrator sufficient guidance to determine the rate.
• V Hazelton did not satisfy the precondition in the head lease for exercising the option to renew. The option could only be exercised if the tenant was not in default, and V Hazelton was in default at the time because it had previously removed a bathroom from the leased premises without the landlord's consent, contrary to the terms of the lease.

Legal Background: Assignments and Subleases; Section 3 of the Ontario Commercial Tenancies Act

The relation of landlord and tenant does not depend on tenure, and a reversion in the lessor is not necessary in order to create the relation of landlord and tenant, or to make applicable the incidents by law belonging to that relation; nor is it necessary, in order to give a landlord the right of distress, that there is an agreement for that purpose between the parties.

Ontario Superior Court of Justice Decision: No Damages Suffered for Breach of Contract

Ontario court of appeal decision: the sublease for the entire unexpired term was not an assignment by application of section 3 of the cta; head lease was properly renewed, practical implications.

• Section 3 of the CTA only applies in Ontario, so this case may only have implications in Ontario.
• It is a change from the common law that, by statute, a transfer by a tenant of all of its unexpired term in a head lease may not be an assignment and may be a sublease in Ontario. However, the court stated that it did not remove entirely the distinguishing feature of subleases from assignments that a sublease is a lease for part of the unexpired term and an assignment is a transfer of all of the unexpired term ( V Hazelton Limited , paragraph 69). By the court's interpretation, section 3 of the CTA only applies if the sublandlord did not reserve part of the term and the parties did not intend an assignment (or, put another way by the court, the parties intended to maintain a landlord and tenant relationship between the head landlord and head tenant), as shown by the sublease agreement.
• The court's interpretation of section 3 of the CTA makes the parties' intentions relevant in finding a sublease or assignment in Ontario, while under the common law the parties' intentions are generally irrelevant. Under the common law, the important factor is whether the sub-landlord reserved part of the term (sublease) or not (assignment).
• The Ontario Court of Appeal anticipated that its decision would not have "far-ranging" impact because it expects most people will still reserve the last day of the term of the head lease in a sublease ( V Hazelton Limited , paragraph 70).
• The court seemed to expect that section 3 of the CTA may only apply in "limited cases" where a sublandlord/head tenant did not reserve the last day of the term in a sublease for some reason but wants to maintain real property rights in the leased premises that it had under the head lease ( V Hazelton Limited , paragraph 70).
• Even with this new interpretation of section 3 CTA from this case, the preferred way to create a sublease in Ontario may continue to be to reserve the last day (or some other duration) of the original term of the head lease in the sublease agreement, to avoid creating an assignment.

Practical Law Resources

• Practice Note, Assignment and Subleasing: Leasing Fundamentals .
• Standard Document, Assignment and Assumption of Leasehold Interest (with Landlord Consent and Estoppel, Long Form) .
• Standard Document, Landlord Consent to Assignment of Lease .
• Standard Document, Landlord Consent to Sublease .
• Standard Document, Sublease (Part of Premises) .
• Standard Document, Sublease (Part of Premises, Part of Term) .
• Standard Document, Sublease (Whole of Premises, Part of Term) .
• Commercial Leasing

• Assigning and Subletting Commercial Leases

ASSIGNMENT AND SUBLETTING OF COMMERCIAL LEASES IN ONTARIO

Some commercial lease agreements may permit the commercial tenant to either sublet or assign the lease to a third party. When the commercial tenant assigns the lease to a third party, they are transferring their entire interest in the lease with the landlord to a third party. The original lease agreement may stipulate that irrespective of an assignment or subletting of the lease, the original tenant shall continue to be liable for the performance of the obligations of the tenant set out under the original lease agreement. A clause permitting the tenant to assign or sublet the lease usually requires the consent of the landlord who may want additional information about the third-party assignee. The tenant should consider inserting a clause into the original lease agreement to the effect that the landlord shall not “unreasonably” withhold consent regarding the assignment or subletting of the lease to a third party. If the commercial tenant chooses to sublet their lease to a third party, they retain the original lease with the landlord and create a new sublease with the third party. Like an assignment, the landlord’s consent is usually required before the tenant can proceed to sublet the property to a third party.

Our business law team has the necessary knowledge and skills to represent both tenants and landlords in the negotiation, review, and drafting of commercial leases. Contact us today to book an initial consultation regarding your commercial lease.

Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us .

About the Author:

Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here .

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• Navigating Lease Takeovers for Toronto Apartments
• Lease Takeovers Explained for Toronto Dwellings

Lease takeovers, or assignments of lease, are common in Toronto’s fluid rental market. In 2021, about 30% of rental transactions in the Greater Toronto Area involved some form of lease transfer. Lease takeovers occur when a current tenant wishes to vacate their rental unit before their lease expires and finds someone to assume the remaining lease terms.

Essential Steps to Secure a Rental Unit in Toronto

Legal considerations in toronto lease assignments, what are the risks of taking over a lease, navigating rent-controlled unit transfers gracefully, can you renegotiate terms during a takeover.

Property managers should familiarize themselves with Ontario’s Residential Tenancies Act, as it outlines the rules for executing a lease takeover. For instance, a written agreement is required for a lawful lease assignment in Toronto. While lease takeovers can offer cost savings compared to starting fresh lease agreements, they require rigorous tenant screening to prevent future complications.

Optimizing Tenant Screening for Successful Lease Assignments

Effective screening during a lease takeover is paramount for maintaining the quality of tenancy in Toronto’s dense rental landscape. A tenant’s rental history, credit report, and references should be reviewed meticulously as part of the landlord or property manager’s due diligence. More advanced property management software for rentals, such as Leasey.AI, streamlines this process and ensures compatible tenant matches for Toronto apartments.

Securing rental units through a lease transfer necessitates a thorough knowledge of the Toronto housing market. In 2022, the vacancy rate for apartments for rent in Toronto, ON stabilized at around 3.8%. Landlords must be adept at navigating these conditions, ensuring rental agreements align with market demands and legal requirements.

For tenants seeking to rent condominiums in popular Toronto neighbourhoods like King West or the Financial District, a lease takeover can be more rapid than the traditional leasing route. The process typically includes completing a lease assignment form, getting the property manager’s approval, and setting up a meeting for the incoming tenant to view the dwelling.

Smart Tools for Streamlining Lease Transfers in Rental Properties

Embracing technology can greatly assist in managing lease assignments effectively and efficiently. As the rental process requires attention to detail, utilizing digital tools can expedite background checks and legal documentation. Thus, integrating a reliable platform that specializes in rental management can be a game-changer for those at the helm of Toronto’s competitive rental industry .

• Start by researching online listings.
• Contact current Toronto tenants looking for lease takeovers.
• Inspect the unit before committing.
• Review the terms of the apartment agreement in Toronto carefully.
• Confirm the takeover with the landlord.
• Prepare necessary documents for approval.
• Seal the deal and plan your move in 2023.

Detailed Comparison of Lease Takeover Considerations for Toronto Apartments

Understanding legal considerations in Toronto lease assignments is crucial for property managers and landlords. According to Ontario’s Residential Tenancies Act (RTA), tenants have the right to request a lease assignment, subject to the landlord’s approval. In 2023, Toronto’s rental market features a variety of properties, from furnished apartments in North York to luxury condos in Toronto downtown, all governed by this legislation.

Before approving a lease assignment, landlords must consider the potential tenant’s qualifications, as they would with any new tenant. Toronto’s RTA specifies that consent for lease assignments must not be unreasonably withheld, underlining the importance of a fair screening process. For detailed information about lease assignments under the RTA, landlords can visit Ontario’s Residential Tenancies Act webpage.

Optimizing Lease Transfer Processes in Toronto’s Rental Market

Optimizing lease transfer processes can significantly reduce vacancies and streamline management. By incorporating current data, managers can expedite lease takeover procedures, ensuring a seamless transition for tenants seeking apartments, from a 4 bedroom in Scarborough to studio suites near Yonge and Eglinton. Quick processing aligns with the dynamic pace of the Toronto rentals market.

When considering as a landlord taking over a lease, it’s essential to assess the potential risks involved. A key concern is the possibility of inheriting a tenant who may not fulfill their obligations, affecting investments from rent Scarborough properties to those in Etobicoke. Recent statistics show that tenant defaults in Canada can lead to costly eviction processes.

Another risk associated with lease takeovers is the short-term nature of the remaining lease period. This can potentially lead to higher turnover rates, particularly in sought-after areas such as Thorncliffe Park or Toronto’s North York region. A comprehensive understanding of lease takeover risks can be further expanded by visiting Canada Mortgage and Housing Corporation’s insights on the Toronto housing market.

Strategic Management of Toronto Bedroom Apartment Rentals

Strategically managing bedroom apartment rentals requires a thorough grasp of local market dynamics. It is beneficial for landlords to keep tabs on trends, as this offers insights into the preferences of renters seeking different types of living spaces, from 4 bedroom houses in Don Mills to bachelor units in West Toronto. Astute rental strategies in 2023 can help mitigate risks and bolster rental yield.

• Check for any hidden costs or fees.
• Ensure apartment maintenance in Toronto is up to date.
• Ask about the history of rent increases.
• Investigate the Toronto neighborhood and local amenities.
• Test all appliances and fixtures during your visit.
• Discuss with current tenant about transitioning utilities.
• Data on public transportation availability helps if no car.

• Furnishing Apartments for Short-Term Rentals in Toronto
• Attracting Tenants to Full Houses with Basements in Toronto North York Area
• Managing One-Bedroom Basement Rentals in Scarborough Area of Toronto
• Strategies for Renting 4-Bedroom Houses in Etobicoke Area of Toronto
• Finding the Best Toronto Apartment Rental Sites for Landlords
• Effective Advertising for Month-to-Month Furnished Rentals In Toronto

Navigating rent-controlled unit transfers in Toronto involves understanding local housing regulations. The Residential Tenancies Act in Ontario, last amended in 2020, dictates the terms for unit transfers. Landlords in neighbourhoods like Scarborough or North York need to stay informed about these legislative frameworks to manage transfers smoothly.

Rent-controlled unit transfers can occur when a tenant wishes to assign or sublet their apartment. Illustrious as the cosmopolitan home of over 2.7 million residents, Toronto had 4.5% rental vacancy rates in 2020, according to the CMHC. This piece of data highlights the potential frequency of navigating rent-controlled unit transfers, warranting special attention from property managers.

Important Considerations for Rent-Controlled Lease Assignments

Before consenting to a lease assignment in a rent-controlled unit, landlords must assess tenant eligibility. Careful screening of the new tenant’s background can prevent future disputes. The success of such transfers relies on effective communication between property managers and potential tenants , ensuring a clear understanding of rent-control stipulations.

During apartment lease takeovers, many landlords often wonder if renegotiating terms is an option. The original lease terms usually remain in effect throughout the takeover unless all parties agree to amendments. For landlords in areas like Etobicoke or Vaughan, lease renegotiation may help align new tenancy agreements with current market values.

In Toronto’s dynamic rental landscape, 3.5% of leases were renegotiated in 2021. This statistic reveals how some property managers approach lease takeovers as an opportunity to update rental terms. Landlords must ensure any changes are documented and that they adhere to the Ontario Rental Fairness Act, 2017, to maintain legal compliance.

Updates to Lease Agreements During Transition of Tenancy

Amending a lease during a takeover can include updates such as pet policies or parking rules. In Toronto’s competitive rental market, where the average rent for a two-bedroom in Liberty Village surged to over $2,500 in 2023, amending terms can reflect current trends. It’s imperative that property managers handle these updates conscientiously to retain tenant goodwill and legal integrity.

Leasey.AI makes leasing easy. But don’t just take our word for it; our users enjoy measurable results:

• A 70% reduction in manual work
• 3X more qualified leads
• 20 hours saved per listing

If you want to learn more, book a call with us today.

• Apartments for rent in Toronto ON

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