Assigning means transferring your lease permanently, while subletting means you move out temporarily and plan to return. In Ontario, you must get your landlord’s written permission for both, but if they unreasonably refuse a general lease assignment, you can legally break your lease with 30 days’ notice using a Form N9.
Life can change unexpectedly. Whether you get a job transfer, need to care for a family member, or finally save enough to buy a house, you might find yourself needing to leave your rental unit before your lease expires. Breaking a contract can feel overwhelming, especially with the high cost of rent in cities like Toronto, Ottawa, and Mississauga. 📝
Under Ontario’s Residential Tenancies Act (RTA), tenants have specific legal rights to transfer their tenancy to someone else to avoid paying massive financial penalties. However, there is a massive legal difference between a sublet and an assignment.
This guide will explain the step-by-step process for both options, how to secure your landlord’s consent, and what you can legally do if they ignore your request or say no. We will also discuss when it might be necessary to consult a local law firm if a dispute arises.
Step-by-Step Process in Ontario
Whether you rent a downtown condo in Toronto or a basement suite in Brampton, the rules for transferring your lease apply uniformly across the province. Taking the correct written steps is essential to protect your credit score and avoid being sued for unpaid rent. 📍
Never just hand your keys to a friend and walk away. If you do not follow the legal process, you remain 100% financially responsible for anything that happens in the unit.
Step 1: Determine if You Are Assigning or Subletting
First, you must define your intentions. An “Assignment” happens when you leave the unit permanently and transfer all your legal rights and obligations to a new tenant. You are washing your hands of the apartment forever. ❗
A “Sublet” happens when you leave temporarily (for example, to travel for six months) but intend to move back in before the lease ends. During a sublet, you remain the primary tenant, meaning you are still legally responsible for paying the landlord if your subtenant misses a payment.
Step 2: Ask the Landlord for Written Permission
You cannot assign or sublet without the landlord’s consent. Send a written request (email or letter) asking for permission to either assign the unit generally or sublet it for a specific period.
The landlord has 7 calendar days to reply to a request for a general assignment. If they simply ignore your email, or if they flatly say “No, I do not allow any assignments,” the RTA gives you a powerful remedy. You can legally terminate your lease by serving a Form N9 with just 30 days’ notice.
Step 3: Find a Suitable Replacement Tenant
If the landlord agrees in principle, you must now go out and find a replacement tenant. Once you find someone, you must present their application (with credit references) to the landlord for approval. 💪
The landlord is allowed to screen the candidate using standard criteria, such as income verification and credit checks. They cannot arbitrarily refuse a perfectly good candidate just because they want to raise the rent. If they unreasonably refuse your specific assignee, you can apply to the Landlord and Tenant Board (LTB) using a Form A2.
Step 4: Finalize the Paperwork
Once the landlord approves the new person, you should formalize the arrangement. For an assignment, you should ideally have the landlord and the new tenant sign an agreement transferring the lease.
For a sublet, you must draft a “Subtenancy Agreement” between you and the subtenant. Remember, in a sublet, the subtenant pays rent to you, and you continue to pay the landlord directly.
How Much Does it Cost in Ontario?
Transferring a lease should not be an expensive ordeal. The RTA strictly limits what landlords can charge during this process to prevent them from profiting off your departure. 💰
Here is a breakdown of the typical costs associated with sublets and assignments:
| Action / Fee Type | Estimated Cost (CAD) | Is it Legal? |
|---|---|---|
| Out-of-pocket Admin Fee | $50 – $250 (Reasonable costs) | Yes (For credit checks/paperwork) |
| Arbitrary “Lease Breaking” Penalty | 1 or 2 months’ rent | No (Strictly Illegal) |
| Form A2 Filing Fee (LTB) | $48 (Online Portal) | Yes (Paid by Tenant to file) |
| Lawyer or Paralegal Consult | $150 – $350 (Flat / Hourly) | Yes (Paid out of pocket) |
It is incredibly important to note that if you are subletting, it is strictly illegal to charge your subtenant more rent than you currently pay to the landlord. You cannot run a profit-making enterprise out of your rent-controlled apartment.
How Long Does the Process Take?
The timelines are very rigid in the RTA to ensure tenants are not held hostage in a unit they need to leave. Once you ask for general permission to assign, the landlord must respond within 7 days. ⏱
If they refuse or ignore you, you can serve a Form N9 notice, which gives you the legal right to move out in 30 days.
If the landlord agrees but later unreasonably refuses your specific candidate, filing a Form A2 with the LTB can take 8 to 12 months to reach a virtual hearing due to current provincial backlogs, which is why utilizing the 30-day Form N9 strategy is often the preferred route for tenants.
Frequently Asked Questions (FAQ)
Can my landlord force the new assignee to sign a new lease at a higher rent?
No. An assignment means the new tenant steps directly into your exact shoes. They inherit your current lease, including your current rent price. The landlord cannot use an assignment as an excuse to raise the rent to current market rates.
Am I responsible for damages caused by the assignee?
In a true lease assignment, your legal relationship with the landlord ends the day the assignment takes effect. You are not responsible for unpaid rent or damages that occur after you have permanently transferred the lease.
Can I sublet my apartment on Airbnb?
Generally, no. Short-term rentals like Airbnb are usually not considered standard sublets under the RTA. Furthermore, many Ontario municipalities have strict bylaws prohibiting short-term rentals unless it is your primary residence, and landlords can evict you for running an illegal hotel.
What if my landlord charges a $500 assignment fee?
A landlord can only charge you for their actual, out-of-pocket expenses incurred during the assignment (like the cost of running a $25 credit check). An arbitrary flat fee of $500 is illegal, and you can file a Form T1 at the LTB to get the illegal fee back.
Should I hire a law firm to help me assign my lease?
For a straightforward assignment, you generally do not need a lawyer. However, if your landlord is threatening to sue you for tens of thousands of dollars for breaking the lease, consulting an experienced paralegal or law firm is a smart way to ensure you follow the exact RTA procedures to protect yourself.
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