Subletting and assigning a lease전대(서블렛)와 임대 계약 양도

What are they?

These are the two ways to leave a lease before it ends. They are set out in Part VI (sections 95 to 104) of Ontario’s Residential Tenancies Act, 2006 (the RTA).

A sublet means the tenant lets another person (the subtenant) live in the unit for a set period and moves back in before the tenancy ends. The lease with the landlord does not change: the subtenant pays rent to the tenant, and the tenant pays the landlord.

An assignment means the tenant hands the whole lease to a new person (the assignee) and leaves for good. The new tenant takes over the same lease, the same rent and the same terms (parking, included utilities and so on).

Sublet vs. assignment

Landlord consent: how far can a refusal go?

• Both need the landlord’s consent (sections 95 (1) and 97 (1)). Section 14 of the standard lease says the same. Get the consent in writing.
• Sublet: the landlord cannot "arbitrarily or unreasonably" refuse a specific subtenant (section 97 (2)).
• Assignment, general request: if you ask "may I assign?", the landlord may refuse assignment altogether (section 95 (2)). You can then end the lease as explained below.
• Assignment, specific person: if the landlord agrees to assignment but refuses the person you bring, the refusal cannot be arbitrary or unreasonable (section 95 (5)). Reasonable screening such as a credit check or references is allowed.
• The landlord may charge only the actual out-of-pocket cost of giving consent, such as a credit check fee (sections 95 (7) and 97 (3)). An "assignment fee" is not allowed.
• Exceptions: these rules do not apply to a superintendent’s unit (section 95 (9)), and LTB guidance says tenants in public, subsidized or non-profit housing and in school-provided housing have no right to assign.

If assignment is refused or ignored: 30 days’ notice

1. Ask the landlord in writing for consent to assign. Use email or text so the date is on record, and keep a copy.
2. If the landlord refuses assignment outright, or does not answer within 7 days of the request (section 95 (4)), you may give a notice to end the tenancy (Form N9). You must give it within 30 days of your request.
3. The termination date can be as little as 30 days after the notice, because the law uses the shorter of the normal notice period (60 days) and 30 days (section 96 (2)). For a daily or weekly tenancy it is 28 days.
4. This works even in the middle of a one-year lease, and the date does not have to be the last day of a rental period. It is one of the surest legal ways to leave a fixed-term lease early.

If the landlord agrees to assignment and only refuses a specific person, this 30-day notice is not available. Then you find another person or apply to the LTB on Form A2.

If the refusal was unreasonable: LTB Form A2

If you think the landlord refused a specific subtenant or assignee arbitrarily, you can file Form A2 (Application about a Sublet or an Assignment) with the LTB (section 98 (1)). The deadline is one year after the refusal (section 98 (2)).

If the LTB finds the refusal unlawful, it can authorize the sublet or assignment, authorize another person you propose, end the tenancy, or order a rent abatement (section 98 (3)). An LTB authorization has the same effect as the landlord’s consent (section 98 (5)).

Rules for the tenant who sublets

• You cannot charge the subtenant more than the rent the landlord lawfully charges (section 134 (3) (a)). Subletting a $2,400 unit for $2,800 is illegal.
• You cannot collect a subletting fee, a "deposit", a furniture charge or any other extra money (section 134 (3) (b) and (c)). The subtenant can apply to the LTB to get it back (section 135 (3)).
• If the subtenant damages the unit or does not pay, you are responsible to the landlord (section 97 (4)). Choose carefully and sign a written sublet agreement.
• When the sublet period ends, the subtenant has no right to stay (section 97 (5)). Put your return date in the agreement.
• Letting someone live there without the landlord’s consent is an "unauthorized occupancy". The landlord can apply to the LTB within 60 days of finding out and have both you and that person evicted (section 100).

Examples

Easy to confuse: assignment sales

In real estate, "assignment" also means selling a pre-construction condo purchase contract to someone else before the building is finished (an assignment sale). That is a completely different transaction from assigning a lease, with developer consent and tax issues. See the "Assignment sale" entry.

When you sublet or assign a condo, the condo corporation’s declaration and rules may require tenant registration or limit short-term rentals. Check with the landlord and the property manager first.