Subletting and Lease Assignment in Ontario: The Rules

This article is general information, not legal advice. Verify against the Residential Tenancies Act and the Landlord and Tenant Board's guidance, or consult qualified counsel.

Two words get confused constantly in Ontario renting, and the confusion matters because they carry different rights: subletting and assignment. The other common myth, that a landlord can simply refuse either one, is also wrong. Here is how both actually work.

Sublet vs assignment: the core difference

A sublet is temporary. You move out for a while and you have the right to move back in before your lease term ends. A subtenant lives there in the meantime, but you remain the tenant of record, and you stay responsible to the landlord.
An assignment is permanent. You transfer your tenancy to a new tenant, who steps into your exact lease and becomes the tenant. You move out for good, and your relationship with the landlord ends.

If you are leaving for the summer and coming back, that is a sublet. If you are leaving for good and handing the unit to someone else, that is an assignment.

The consent rule (and where "you can't unreasonably refuse" applies)

Both require the landlord's consent, but the standard differs, and this is the part worth getting right:

For a sublet, the landlord cannot arbitrarily or unreasonably withhold consent.
For an assignment, it depends on how you ask. If you make a general request ("may I assign?"), the landlord can refuse for any reason. But if you propose a specific person to take over, the landlord cannot arbitrarily or unreasonably refuse that person. So the stronger move as a tenant is to bring a qualified, ready replacement, not just ask in the abstract.

The escape hatch: the 7-day rule

Here is a right many tenants do not know they have. If you ask to assign your tenancy and the landlord refuses, or does not respond within 7 days, you can end your tenancy on shortened notice: 30 days instead of the usual 60 (or 28 days for a weekly or daily tenancy). You have to give that notice (Form N9) within 30 days of making your request.

In plain terms: asking to assign, even if the landlord says no, can unlock an early exit on much shorter notice. It is a genuinely useful tool if you need out of a lease.

Fees: out-of-pocket only

A landlord who consents may charge only their reasonable out-of-pocket expenses, for example the cost of a credit check on the incoming person. A flat "sublet fee," a premium, key money, or any charge untethered to real costs is an illegal charge under the Act. If you are asked for a lump-sum fee to sublet or assign, that is not permitted.

The catch on subletting: you stay on the hook

This is the part tenants underestimate. During a sublet, you remain responsible to the landlord for the rent and for any damage the subtenant causes. If the subtenant stops paying or trashes the place, that lands on you, not directly on the landlord. So choose a subtenant as carefully as a landlord would choose a tenant, because for those months you effectively are the landlord.

Do not skip consent

An unauthorized sublet or assignment, done without the landlord's consent, makes the occupant an "unauthorized occupant," and the landlord can apply to the Landlord and Tenant Board to evict them (generally within 60 days of discovering it). Get the consent in writing before anyone moves in. It protects everyone.

For landlords

The mirror image of the rules above:

You cannot unreasonably refuse a sublet, or a specific, qualified person proposed for an assignment.
You can charge only your real out-of-pocket costs, not a fee.
Treat an incoming subtenant or assignee like any applicant: screen them with the same consistent process, and put your consent in writing. Our screening checklist applies here just as it does to a new tenancy.

Frequently asked questions

What is the difference between subletting and assigning? A sublet is temporary and you have the right to return; you stay the tenant of record and stay responsible. An assignment is permanent; you transfer the lease to a new tenant and move out for good.

Can my landlord refuse to let me sublet? Not unreasonably. For a sublet, and for a specific proposed assignee, the landlord cannot arbitrarily or unreasonably refuse. For a general "may I assign?" request with no named person, they can refuse for any reason.

What happens if my landlord ignores my request to assign? If they do not respond within 7 days (or refuse), you can end your tenancy on 30 days' notice instead of 60, by giving an N9 within 30 days of your request.

Am I still responsible after I sublet? Yes. During a sublet you remain liable to the landlord for the rent and for the subtenant's conduct. Choose your subtenant carefully.

Subletting and assignment are manageable when everyone knows the rules and the consent is documented. Habyn helps landlords and tenants keep leases, consents, and records straight. See how Habyn helps landlords.