Tenant Sublet Without Permission in PEI

No. Under section 30 of the Residential Tenancy Act, a tenant may sublet or assign a rental unit, or part of it, only with the landlord's written consent. A verbal "sure, go ahead" is not what the section describes. If you agree, put it in writing and keep a copy.

The same section limits your side too. You may not withhold consent arbitrarily or unreasonably. The one reason the Act spells out is that the sublet or assignment would put an unreasonable number of people in the unit. The Act does not define "arbitrarily or unreasonably", so a refusal for any other reason should be one you can explain in plain terms if the Director ever asks.

This section is part of the terms deemed to be in every PEI tenancy agreement. A lease clause that is inconsistent with it has no effect, and a tenant cannot waive Act protections by signing. This guide covers private tenancies. For government or municipal subsidised units, the Act says its own subletting rules do not apply.

Two words matter here. A sublet means the tenant stays on the tenancy and lets someone else use the unit for a period. An assignment means the tenant hands the tenancy over. The Act treats the consequences of each differently, as the next sections show.

You may not charge a fee for giving consent that is more than the expenses you actually incurred. If a credit check or paperwork cost you money, that cost is the ceiling. A flat "sublet fee" above your real expenses is not allowed by the Act.

The Act also limits what the tenant can charge a subtenant. The tenant may not charge more rent than the tenant pays under the tenancy agreement. If the tenant and the subtenant both live in the unit, the subtenant's share is capped at the rent divided by the number of tenants, or whatever split they agree among themselves.

The Rental Office FAQ also says a landlord cannot charge more rent when a new roommate moves in. If you are thinking of raising rent because a second person has arrived, read the Rental Office FAQ first and see our PEI rent increase guide.

Liability differs depending on which one happened. The table below summarizes section 30.

Situation	What the Act says
Assignment	The tenancy agreement continues on the same terms. The new tenant is liable for breaches after the assignment. The former tenant stays liable for breaches that relate to the period before it.
Sublet	The original tenant stays entitled to the benefits of the tenancy and stays liable to you for breaches during the subtenancy. The subtenant is liable to the tenant, not to you.
Subtenant after the sublet ends	A subtenant has no right to stay once the subtenancy ends.

In practice this means that after a sublet your tenant is still the person you hold responsible for rent and damage. After an assignment, your relationship moves to the new tenant for the future.

The Act gives you two documented routes. The sources reviewed do not say whether you must pick one before the other or whether you can use both, so check with the Rental Office before you file.

1. Record what happened. Note the date you learned of it, who is in the unit, and what rent the tenant is collecting, if you know. The clock on the first route starts at the conduct itself.
2. Apply to the Director (Form 2(B), option (g)). You may apply for an order that the tenant sublet or assigned without written consent, or charged the subtenant too much rent. You must apply within 10 days of the alleged conduct, and the form repeats that limit. The applicant must serve a copy on the other party within five days of filing.
3. Or serve a notice for cause (Form 4(A), reason (j)). Purporting to assign or sublet without first getting your written consent is a ground for a notice for cause. The notice must be in writing, signed and dated, give the address, state the effective date and grounds, and be in the approved form. It ends the tenancy no earlier than one month after the tenant receives it, and on the day before rent is due.
4. Expect the 10-day dispute window. The tenant has 10 days to dispute the notice by filing a Form 2(A) application. If the tenant does not apply in that time, the tenant is deemed to accept that the tenancy ends on the effective date and must vacate.

Forms are listed on the Rental Office forms page. For the general eviction path, see our PEI notice to end tenancy guide.

Not every case is a clean sublet. A tenant may simply let a friend or partner move in. The Act has a separate ground for a notice for cause when there is an unreasonable number of occupants in the unit, and the same one-month timing applies. It also has a ground for breaching a material term of the tenancy that is not corrected within a reasonable time after written notice.

The official sources reviewed do not say what a landlord may do about an unauthorised occupant who is not a subtenant beyond those grounds. They also do not say whether you can raise the deposit or keep the subtenant's rent in that case. Do not assume either. Ask the Rental Office, and read can my tenant move someone in for the general picture.

If the tenancy is assigned or ends, the deposit clock starts. Within 15 days after the date the tenancy ends or is assigned, you must either return the deposit with interest or apply to the Director claiming against it. If you do neither, you cannot claim against the deposit and must pay the tenant double the deposit. See our PEI security deposit guide.

The Director of Residential Tenancy, through the Rental Office, decides applications first. The Island Regulatory and Appeals Commission (IRAC) hears appeals of the Director's orders only. It is not the first-level decision maker, so file your application with the Director, not IRAC.

This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.