Subletting and Assignment in Ontario

These two terms are often used loosely, but under the Residential Tenancies Act, 2006 they mean different things.

Subletting means you temporarily hand over the unit to another person for part of the remaining term, but you intend to return before the tenancy ends and you remain the tenant of record -- ultimately responsible to the landlord.

Assignment means you transfer your entire interest in the tenancy to a new person for the rest of the term (or beyond, if it becomes periodic), and you do not intend to return. Once an assignment is properly completed, the new tenant takes over your obligations and you are no longer the tenant.

Both subletting and assignment require the landlord's consent. However, the landlord cannot simply refuse for no reason -- consent to an assignment cannot be unreasonably withheld. If a landlord unreasonably refuses to consent to an assignment, this can itself become a basis for the tenant to end the tenancy early.

A landlord may reasonably refuse consent for legitimate reasons, such as the prospective new tenant not meeting reasonable screening standards the landlord applies to all applicants. What is not reasonable is refusing consent purely to avoid losing the current tenant or to force a lease to simply lapse.

Put your request to sublet or assign in writing, and give your landlord a reasonable opportunity to review and respond, ideally including relevant information about the proposed new occupant (similar to what you provided when you applied). Keep a copy of your request and any response.

If your landlord does not respond within a reasonable time, or refuses without a legitimate reason, you can raise the matter with the Landlord and Tenant Board (LTB) using an A2 application, which addresses sublet and assignment disputes.

Because you remain the tenant of record during a sublet, you are still responsible for the rent and for ensuring the unit is properly cared for, even though someone else is living there temporarily. If the subtenant causes damage or fails to pay rent to you as agreed, the landlord's recourse is still against you, not the subtenant directly, since your name remains on the lease.

For this reason, many tenants choose a written sub-lease agreement with their subtenant setting out rent, duration, and expectations, even though the RTA does not mandate a specific form for this side agreement.