The Ultimate Guide to Subletting a Rental Property in Ontario

As an expert in the real estate industry, I have encountered numerous questions about subletting a rental property in Ontario. It is a common practice for tenants to sublet their rental units to others, especially when they need to move out before their lease ends. However, many people are not aware of the rules and regulations surrounding subletting in Ontario, which can lead to legal issues and financial consequences.

What is Subletting?

Subletting is the process of renting out a rental property to another person, known as the subtenant, while the original tenant is still responsible for the lease agreement with the landlord. In simpler terms, it is when a tenant becomes a landlord by renting out their unit to someone else. In Ontario, subletting is allowed unless it is explicitly prohibited in the lease agreement.

However, there are certain rules and procedures that both the tenant and landlord must follow to ensure a smooth and legal subletting process.

Obtaining Permission from the Landlord

The first and most crucial step in subletting a rental property in Ontario is obtaining permission from the landlord. According to the Residential Tenancies Act, tenants must get written consent from their landlord before subletting their unit. This means that you cannot simply hand over your keys to someone else without informing your landlord. The request for subletting must be made in writing, and it should include details such as the name of the proposed subtenant, their contact information, and the reason for subletting. The landlord has 14 days to respond to this request, and if they do not respond within this time frame, it is considered as consent. It is essential to note that the landlord cannot unreasonably withhold their consent for subletting.

However, they can refuse if they have a valid reason, such as the proposed subtenant's poor credit history or previous eviction records.

Subletting Agreement

Once the landlord has given their consent for subletting, the next step is to create a subletting agreement between the original tenant and the subtenant. This agreement should include all the terms and conditions of the sublet, such as the rent amount, duration of the sublet, and any other rules set by the landlord. The original tenant is responsible for ensuring that the subtenant follows all the rules and regulations set by the landlord. If the subtenant violates any of these rules, it is ultimately the original tenant's responsibility, and they may face consequences from their landlord.

Responsibilities of the Original Tenant

As mentioned earlier, the original tenant is still responsible for their lease agreement with the landlord, even when they have sublet their unit. This means that they are responsible for paying rent on time, maintaining the unit in good condition, and following all other terms and conditions set by the landlord. The original tenant must also ensure that they have a written agreement with their subtenant and collect a security deposit from them.

This deposit should not exceed one month's rent and must be returned to the subtenant at the end of their sublet term.

Responsibilities of the Subtenant

The subtenant has a legal right to occupy the rental unit during their sublet term. They must follow all rules set by both the original tenant and landlord. If there are any issues with the rental unit, such as maintenance problems or safety concerns, they must report them to the original tenant, who will then inform the landlord. The subtenant is also responsible for paying rent to the original tenant on time and following all other terms and conditions set in the subletting agreement.

Ending a Subletting Agreement

Subletting agreements in Ontario are typically for a fixed term, which means that they end on a specific date. If the subtenant wishes to stay longer, they must obtain written consent from the landlord and enter into a new lease agreement with them. If the original tenant wishes to end the subletting agreement before the agreed-upon date, they must give proper notice to both the subtenant and landlord.

The notice period is usually 30 days, but it may vary depending on the terms of the subletting agreement.

Consequences of Illegal Subletting

Subletting without obtaining written consent from the landlord is considered illegal in Ontario. If a tenant is caught subletting without permission, they may face legal consequences, such as eviction or fines. The landlord also has the right to terminate the lease agreement with the tenant if they have violated any terms and conditions. Furthermore, if a subtenant is living in a rental unit without a written agreement with the original tenant, they do not have any legal rights as a tenant. This means that they can be asked to leave at any time without any notice or compensation.

In Conclusion

Subletting a rental property in Ontario can be a convenient option for tenants who need to move out before their lease ends.

However, it is crucial to follow all the rules and regulations set by the Residential Tenancies Act and obtain written consent from the landlord before subletting. Both the original tenant and subtenant must also have a written agreement to protect their rights and responsibilities. Failure to follow these rules can result in legal consequences and financial losses.