sublet vs assignment ontario

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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)
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• 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

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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

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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

Steps to Justice Partners

• Understanding Discrimination Laws in Ontario Rental Properties
• Finding the Perfect Rental Property in Ontario: The Role of a Real Estate Agent
• The Ultimate Guide to Buying a Rental Property in Ontario
• Understanding the Process of Evicting a Tenant for Non-Payment of Rent in Ontario
• The Ultimate Guide to Subletting a Rental Property in Ontario

What is Subletting?

Obtaining permission from the landlord, subletting agreement, responsibilities of the original tenant, responsibilities of the subtenant, ending a subletting agreement, consequences of illegal subletting, in conclusion.

However, it is crucial to follow all the rules and regulations set by the Residential Tenancies Act and obtain written consent from the landlord before subletting. Both the original tenant and subtenant must also have a written agreement to protect their rights and responsibilities. Failure to follow these rules can result in legal consequences and financial losses.

Stella Bélanger

Certified tvaholic. Extreme food fanatic. Amateur beer evangelist. Certified bacon evangelist. Passionate bacon nerd.

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The Ultimate Guide to subletting in Canada for renters & landlords

Creative Content Writer at liv.rent

Subletting is a great option for renters seeking a little flexibility in their rental arrangement, but who don’t want to give up the stability of having a place to rent. For landlords, it’s an excellent way to keep qualified tenants while eliminating the time-consuming process of filling vacancies yourself. In order to make a sublet arrangement work though, both parties need to be aware of their rights & responsibilities, and have a clear idea of how the process works. Here, liv.rent will provide an overview of subletting in Canada – broken down for renters & landlords in B.C. , Alberta , and Ontario .

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What is a sublet?

Subletting is the process of renting out all or part of a property that you are currently leasing from a landlord to another person, referred to as the subtenant or subletter. In a subletting arrangement, the original tenant becomes the “sublessor” or “sublandlord,” while the person who subleases the property becomes the “sublessee” or “subtenant.”

The key aspect of subletting is that the original tenant retains the primary lease agreement with the landlord, and they essentially become a middleman between the landlord and the subtenant. The subtenant pays rent to the original tenant, who in turn continues to pay rent to the landlord as per the terms of the original lease.

Subletting is often used to temporarily lease a property when the original tenant needs to be away for a period, such as for travel, work, or study abroad. It can also provide flexibility for renters who may need to move out before their lease term ends. However, it’s important to note that subletting typically requires the landlord’s consent and adherence to local laws and regulations.

Is subletting legal in Canada?

Yes, subletting is legal in Canada, but it is subject to specific rules and regulations that vary by province and territory. While subletting is generally permitted, tenants must obtain proper consent from their landlords before subletting their rental units. Landlords have the right to approve or reject a subletting arrangement based on valid reasons.

It’s important for both tenants who wish to sublet and potential subtenants to be aware of their rights and responsibilities under local rental laws. These laws can differ across provinces and territories, so it’s recommended to consult the residential tenancy agency or authority in your specific region to understand the exact requirements and regulations related to subletting.

Subletting in different provinces

Rental laws can vary greatly by province/territory in Canada. Each region comes with its own set of rules, regulations, and best practices when it comes to subletting. Whether you’re a tenant considering subletting your space, a landlord looking into subletting, or a prospective subtenant looking for a short-term arrangement , understanding the specific guidelines in your province is essential to ensure a smooth and straightforward subletting experience.

Is subletting legal in BC?

In B.C., tenants have the right to sublet their rental units with the landlord’s consent. However, the landlord cannot unreasonably withhold consent. If a tenant wishes to sublet, they are required to provide the landlord with a written request that includes specific information about the proposed subletting arrangement, such as the subtenant’s name and contact information, the term of the sublet, and reasons for subletting.

The landlord has 14 days to respond to the tenant’s subletting request. If the landlord does not respond within this timeframe, the tenant can assume that consent has been given. If the landlord refuses to give consent, they must provide valid reasons for the refusal.

It’s important for both tenants and subtenants in B.C. to follow these procedures and ensure proper documentation to maintain transparency and comply with the law.

Keep in mind that rental laws and regulations can change over time, so it’s a good idea to consult the Residential Tenancy Branch of British Columbia or a legal professional for the most up-to-date information regarding subletting in the province.

Is it legal to sublet in Ontario?

Yes, subletting is generally legal in Ontario . However, there are specific rules and regulations that both tenants and landlords must follow.

In Ontario, a tenant has the right to sublet their rental unit, but they must obtain written consent from their landlord before doing so. Landlords cannot unreasonably withhold consent for subletting. When requesting to sublet, tenants must provide their landlord with a formal written notice that includes the following details:

• The subtenant’s name and contact information
• The term of the sublet (start and end dates)
• A copy of the proposed sublet agreement
• The reason for subletting

The landlord has the right to request additional information about the proposed subtenant, but they must respond to the tenant’s request within a specific timeframe (usually 7 to 30 days, depending on the situation).

If the landlord refuses consent, they must provide valid reasons for the refusal. If the landlord does not respond within the specified timeframe, the tenant can assume that consent has been given.

It’s important for both tenants and potential subtenants to follow these procedures and adhere to the law in order to engage in a legal subletting arrangement in Ontario.

As rental laws and regulations may change, it’s recommended to consult the Landlord and Tenant Board of Ontario or seek legal advice for the most current and accurate information on subletting in the province.

Is subletting legal in Alberta?

Subletting is generally legal in Alberta , but tenants must obtain written consent from their landlord before proceeding. Landlords have the right to approve or reject a subletting arrangement based on valid reasons, and they cannot unreasonably withhold consent.

Once consent is granted, both the original tenant and the subtenant should establish a sublet agreement that outlines the terms and responsibilities. While the subtenant pays rent to the original tenant, the latter remains responsible for fulfilling obligations under the original lease agreement, including paying rent to the landlord. Adhering to legal requirements and open communication between all parties is essential for a successful subletting experience in Alberta.

How to sublet your unit: for renters

Here’s a quick breakdown of what the subletting process will look like for renters, as well as some recommended extra steps to ensure you’re doing your due diligence and protecting yourself legally.

• Review the lease agreement : Before you start trying to sublet your unit, read through your tenancy agreement and make sure you pay attention to any lease terms regarding subletting to make sure it’s permitted under the contract.
• Get the landlord’s approval : Once you’ve ensured that subletting is permissible within the terms of your lease, you should make sure to obtain written consent from your landlord to avoid disputes later on.
• Find a subletter : Once your subletting request has been approved by your landlord, start advertising your space, interview potential subletters, and select the right fit. You can post your room for rent on liv.rent to find a subletter safely, quickly, and easily.
• Negotiate the rental terms : Set a rent price for your sublease, decide on a sublet period, and clarify the terms and rules of the rental arrangement with your subletter.
• Document everything : Be sure to keep a written record of all communications throughout the process. Draft a sublet agreement that lays out all the terms and conditions of the subletting arrangement.
• Help facilitate the transition : Introduce your subletter to the property and landlord, and be sure to walk them through their ongoing responsibilities.
• Maintain communication : Keep an open line of communication for any issues or questions, as well as connect them to the landlord.

How to sublet your unit: for landlords

Landlords won’t have as much to do during the subletting process, as the onus is typically primarily on the original tenants to find subtenants. Still, there are a few recommended steps for landlords to take before putting pen to paper on a subletting agreement in order to ensure that they and their rental property are protected.

• Add a subletting clause : Before renting out your unit in the first place, it’s a great idea to add a Subletting Addendum to the lease agreement. It’s not uncommon for tenants to sublet their units, so making clear the exact requirements and expectations from the outset is essential for protecting yourself.
• Screen subletters : Be sure to evaluate potential subletters through interviews, reference checks, and credit & background checks. You can make this process easier and more effective by taking advantage of tools such as the Trust Score .
• Draft a sublet agreement : Either have the original tenant create a sublet agreement, or create one yourself and ensure it is signed by all parties involved.
• Work out the finances : Determine the amount of rent, deposits, and payment methods that the subtenant will use.
• Maintain communication : Stay in touch with both the original tenant and the subletter to address and get ahead of any potential issues.

>> Recommended Reading: Understanding Lease Addendums Part 1: What Is A Lease Addendum?

FAQ: Subletting in Canada

What is subletting and how does it work.

Subletting is a rental arrangement in which a tenant (the original tenant) leases all or part of their rented property to another person (the subtenant or sublessee). In a subletting scenario, the original tenant essentially becomes a middleman between the landlord and the subtenant.

What are the rules for subletting in BC?

In British Columbia, subletting is permitted, but tenants must first obtain written consent from their landlord. The landlord has 14 days to respond to the request, and if consent is given, the original tenant remains responsible for rent and property upkeep. Both parties should enter a subletting agreement outlining terms, and the original tenant must ensure the property is returned in its original condition at the end of the sublet period.

For complete rules and regulations regarding subletting in B.C., it’s best to consult this official resource .

How long can a tenant sublet in Ontario?

In Ontario, there is no specific time limit defined by law for how long tenants can sublet their rental units. The duration of a subletting arrangement is typically determined by mutual agreement between the original tenant (sublessor) and the subtenant (person subletting the unit). The sublet period can range from a few months to the remaining duration of the original lease, depending on the needs and agreements of the parties involved.

Can a landlord prevent you from subletting in Ontario?

In Ontario, landlords cannot unreasonably withhold consent for subletting. This means that while a landlord has the right to approve or reject a subletting request, they must have valid and reasonable grounds for refusing consent. The Residential Tenancies Act (RTA) outlines the rules related to subletting in Ontario.

Can you make profit from subletting?

Yes, renters can potentially profit from subletting, but it’s important to approach the process carefully and ethically, considering both legal and practical aspects. As the original tenant, you have the flexibility to set the rent for the subtenant. You can choose to charge the same rent you pay to the landlord or adjust it based on factors like market rates , utilities, furnishings , and other amenities. Any amount you charge beyond your own rental costs could potentially lead to a profit.

Can I charge more for a sublet?

Yes, renters are within their rights to charge subtenants more than the original cost of rent. If you’re subletting your rental unit with furniture, or if it’s a particularly busy time of year or average rent prices have increased substantially since you signed the original lease, it’s quite likely that you’ll be able to charge more than you’d normally be paying.

Is subletting a risk?

For both landlords and renters, subletting isn’t without risks – however, these risks can be almost entirely eliminated by understanding local rental laws, and doing your due diligence when it comes to screening subtenants.

For landlords, it’s important to put the same care into tenant screening as you would for any new tenant, making sure to look into both their financial situation and rental history. To be sure you’re making the right choice, it’s recommended to use a tenant screening tool like the Trust Score which gives a complete summary of applicants’ suitability and trustworthiness through credit information, a detailed risk assessment, income & employment verification documents, and more.

There are more risks to the original tenant in a subletting scenario, as they will typically be liable for any damage, disturbances, or missed rent payments by the subletter. Though landlords should still screen subtenants carefully, it’s largely up to the renter to ensure that their replacement is trustworthy and won’t cause any problems.

What are the disadvantages of subletting?

For landlords, one potential disadvantage of allowing subletting is that you may not be as familiar with the subletter as you were with the original tenant, which can make communication harder. If you’re not careful to screen the new tenant as well, there’s a chance that they could cause damage or disturbances as well, but this can be avoided with a thorough tenant screening process.

For the original tenant in a subletting scenario, the main disadvantage is that you will still be liable for rent and damages caused to the unit. Even if you aren’t living in the rental property, it’s typical for the subletter to send rent to the original tenant, who will then pass it off to the landlord. If the subtenant doesn’t pay rent, the original tenant will still be on the hook for the full amount in most cases.

What reasons can you refuse subletting?

In most Canadian provinces, landlords can refuse a subletting arrangement for valid reasons such as financial instability, unsuitable rental history, property capacity limits, legal compliance, property damage, or insurance considerations. However, they must provide reasonable justifications and cannot unreasonably withhold consent. Both tenants and landlords should be aware of local rental laws and rights related to subletting.

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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 )

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

What is Assignment of Lease and How It Differs from Subletting

The assignment of lease (and rent) is a foggy topic that is often confused with subletting. Let's clear the air once and all right now. Learn the differences between a lease assignment and sublease so you can make the right choice.

What is Assignment of Lease? - The Important Basics

Let's begin by introducing the 3 players in a lease assignment - The landlord, the original tenant (assignor) and the new tenant (assignee). The original tenant has an unexpired lease agreement with the landlord and he wants out. Since the original tenant can't just break the agreement and walk off, what he does is to get a new tenant to swap places... and take over all his rights and obligations for the remainder of the lease period. So if the original tenant signs a 1 year commercial lease and the business goes bust after 8 months, the new tenant will be assigned a 4-month commercial lease (with the same terms and conditions as the original agreement). Now here's the big catch: Even though the original tenant has handed over all his duties and obligations to the new tenant, he is not off the hook... unless the landlord agrees to release him from all liabilities. If the new tenant stirs up trouble, our dear original tenant will find himself in hot soup as well. Of course, whether the original tenant is allowed to pull this assignment trick out of his hat is a whole new matter. Knowing for sure is actually simpler than most people think: First, examine your local landlord tenant laws for any lease assignment rules. Most of the time, landlords are given the right to allow or disallow assignments but once in a while, the local law let tenants have the final say instead. If there's no mention of lease assignments in your law text, then your rental lease agreement shall dictate the terms.

Difference Between Lease Assignment and Subletting

When it comes to subletting vs assignment of lease, there's often a massive mix-up. Sometimes even real estate professional get it wrong by assuming them to be one and same thing. However if you dig deeper, you will find that the differences are not just numerous, but important as well. Let's begin by dragging the landlord into the picture. An assignment of lease launches the new tenant into a direct relationship with the landlord - The landlord collects rent straight from the new tenant and deals with the new tenant directly on all lease issues. So in this case, the original tenant gets to take back seat and doesn't have to manage the new tenant actively. On the other hand, there's no direct relationship between the landlord and new tenant (subtenant) in a sublease. Instead the original tenant plays mother goose and is responsible for collecting rent from the subtenant and making sure that he's following the lease rules. When you compare the two, a sublease is a lot more hands-on for the original tenant. No matter which path you take, you will still want a good new tenant who pays the rent on time and follows the lease rules to the agreement. For the golden rules on screening tenants and running credit checks, Click here for our guide to running tenant credit checks. When you have a lease assignment, the terms and conditions of the lease remains largely unchanged - It's almost like taking the original lease agreement and swapping the tenant's name with another. With a sublease, there's more breathing space - The original tenant can decide how much rent to charge, how long the subtenant is going to stay or even collect security deposit... as long as it stays within the boundaries drawn by the original lease agreement between the landlord and original tenant.

Should You Choose Assignment of Lease or Sublease?

You are the Landlord - A lease assignment is recommended in most cases. You will have more control over your new tenant (instead of leaving matters in the original tenant's hands and hoping that he would do a good job)... plus you still have the original tenant to cover your back in case anything goes wrong. You are the Original Tenant - Now this is a tricky one. If you want to someone to take over the entire lease and property for its remaining duration (e.g. your business goes belly-up and you no longer need the office), then help yourself to a lease assignment. If the landlord's consent is required for assignment (and he doesn't give the nod), you can always try offering him a lease assignment fee as a deal sweetener. However, if you are looking for someone to share the place (and rent)... or perhaps you need someone to cover the rent while you are overseas for a few short months, then a sublease would be ideal. You are the New Tenant - An assignment of lease works better for you most of the time. You won't be at the mercy of the original tenant (for example if he screws up and the landlord terminates the original lease agreement, your sublease might also go up in flames). But if you only want to rent part of the property... or don't want to tie yourself down for the remaining lease duration, then you are better off sticking to a sublease. Now that we have covered the topic of assignment vs sublease, go ahead and take your pick - Click here for an assignment of lease form or Click here for a sublet agreement instead.

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• 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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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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Can my landlord refuse to let me sublet or assign?

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

Your landlord can also decide not to let you assign at all , and they do not need to give a reason. This does not apply to subletting.

Landlords often do not allow any assigning because if they make a new agreement with a new tenant instead, they can charge a higher rent.