Guide to Subletting in Ontario for Renters and Landlords

Subletting can be a win–win in Ontario when life plans shift, a job takes you out of town, or you need help covering rent while you’re away. Done correctly, it keeps a tenancy stable and lawful. Done poorly, it can create headaches, unexpected costs, and even eviction proceedings. This guide walks both renters and housing providers through what “subletting” actually is in Ontario, how it differs from an assignment, when consent is required, what fees and rents are legal, and how to resolve disputes, so everyone understands their rights and responsibilities from the start.

Sublet vs. Assignment: Two very different tools

In Ontario, a sublet occurs when the original tenant temporarily moves out and allows another person (the subtenant) to occupy the unit for a set period, with the original tenant returning at the end of that period. The original tenant stays on the hook to the landlord during the subtenancy. An assignment transfers the tenant’s interest to a new person permanently; the assignee takes the tenant’s place going forward. Understanding this difference matters, because the rules and remedies are not identical.

Landlords should note that a sublet must specify an end date within the existing term or rental period, and a tenant who sublets remains liable to the landlord for rent and any breaches during the subtenancy. By contrast, after a proper assignment, the new person steps into the tenant’s shoes under the same lease.

Consent: When it’s needed, and how it must be handled

Tenants need the landlord’s consent to sublet or assign. While owners and property managers can consider reasonable factors—creditworthiness, troubling past conduct, or incomplete applications—they cannot withhold consent arbitrarily or unreasonably. If a landlord refuses without good reason, or simply fails to respond within the statutory timeline for assignments, the law provides remedies. Keep your requests, responses, and supporting information in writing.

If the dispute can’t be resolved informally, either party may file Form A2: Application about a Sublet or an Assignment with the Landlord and Tenant Board (LTB). The Board can authorize a proposed sublet, authorize an alternative, terminate the tenancy in some circumstances, or grant a rent abatement. Where the tenant has sublet without consent, the landlord may also apply to end the tenancy (there are strict timelines for doing so).

What happens if consent is withheld for an assignment?

For assignments specifically, if the landlord unreasonably refuses, or does not respond within the required period after a request, the tenant may give a notice to terminate the tenancy on 30 days’ notice. This is a narrow, assignment-only remedy designed to prevent tenants from being trapped when the landlord will not cooperate.

Money matters: What can be charged, and what cannot

Ontario’s Residential Tenancies Act (RTA) sets clear limits on rent and fees:

• A tenant cannot sublet a unit for more than the lawful rent the landlord charges the tenant. Subtenants can recover overpayments at the LTB.
  
  

• Landlords cannot tack on extra “fees” or premiums beyond lawful rent under section 134 of the RTA. The Act tightly restricts non-rent charges.
  
  

• Landlords may recover reasonable out-of-pocket expenses related to processing a sublet or assignment request (for example, credit checks), but “consent fees” or arbitrary surcharges are risky and can be challenged. When in doubt, document the actual cost basis.
  
  

Rent control and increase rules continue to apply; an assignee steps into the same rent and terms, and any increase must follow the guideline and notice requirements. Subtenancies do not create a new lawful rent above what the tenant pays.

Responsibilities during a subtenancy

During a lawful sublet, the original tenant remains responsible to the landlord for rent, damage, and complying with the lease and the RTA; the subtenant is responsible to the original tenant. Practically, that means the landlord enforces against the tenant, and the tenant enforces against the subtenant. The LTB will treat the tenant as if they were the landlord in certain applications against the subtenant (for arrears, damage, illegal acts, interference with enjoyment, and more).

Because liability flows back to the original tenant, careful screening matters. Use written agreements, verify ID and references, confirm insurance, and set clear house rules that mirror the lease. If the subtenant overstays after the sublet end date, the tenant can apply to the LTB to evict them—do not self-help or change locks.

The Takeaway: Subletting can work—if you follow the rules

When renters and landlords in Ontario treat subletting as a legal process, not just a handshake arrangement, it protects everyone. Define whether you need a sublet or an assignment, document consent in writing, keep rents and fees within the law, and use the LTB’s A2 process if a dispute arises.