Lease ClausesSubletting
Lease Clause Explained

Subletting Clause: What You Can and Can't Do

A subletting clause governs your right to have someone else take over your unit temporarily (sublet) or permanently (assign). In Ontario, landlords cannot simply prohibit subletting — your rights are protected under the RTA.

Sublet vs. Assignment: What's the Difference?

Subletting

You temporarily transfer possession of the unit to another person (the subtenant) for a fixed period, then return. You remain responsible to the landlord throughout. The subtenant pays you, and you pay the landlord.

Assignment

You permanently transfer all your rights and obligations under the lease to a new tenant (the assignee). Once accepted by the landlord, you are generally released from future obligations.

Your Rights in Ontario

  • You have the right to sublet or assign your lease — a blanket prohibition is not enforceable in Ontario.
  • Your landlord's consent is required, but it cannot be withheld unreasonably.
  • If the landlord refuses consent without reasonable grounds, you can apply to the LTB.
  • If the landlord refuses a valid assignment, you have the right to terminate with 30 days notice.
  • You remain responsible to the landlord for rent and obligations even after subletting.
  • An assignee steps fully into your shoes — they take on all rights and obligations under the lease.

When Can a Landlord Refuse?

A landlord can refuse a sublet or assignment for legitimate reasons. Reasonable grounds for refusal include:

  • The proposed subtenant has a poor rental history or references
  • The proposed subtenant cannot demonstrate ability to pay rent
  • The number of occupants would violate health or safety standards
  • The proposed use differs materially from what the lease permits

A landlord cannot refuse simply because they want a higher-paying tenant, or because they want to renovate the unit.

Red Flags in Subletting Clauses

  • "Subletting is strictly prohibited" — this clause is unenforceable under the RTA
  • Clause requires landlord approval with no timeline for response (allowing indefinite delay)
  • Clause allows landlord to charge a fee for processing a sublet request
  • Assignment rights waived entirely in the lease
  • Clause imposes liability on original tenant even after assignment (when proper assignment was completed)

Questions to Ask Your Landlord

  • What is your process for approving a sublet or assignment request?
  • How long does your approval process typically take?
  • What documentation do you require from a proposed subtenant?
  • If I assign the lease, am I fully released from obligations once the assignment is accepted?