Under Section 30 of the PEI Residential Tenancy Act, you have the right to sublet or assign your apartment. Your landlord must provide written consent and cannot arbitrarily or unreasonably withhold it. They also cannot charge you a massive fee-only their actual out-of-pocket expenses.
Are you planning to leave Prince Edward Island for a temporary work contract, or perhaps you are moving from Charlottetown to Summerside but still have six months left on your lease? Subletting or assigning your rental unit is an excellent way to avoid breaking your lease and facing hefty financial penalties.
Many tenants mistakenly believe they can just hand their keys to a friend and walk away. Doing this violates your tenancy agreement and can lead to eviction. In PEI, the Island Regulatory and Appeals Commission (IRAC) sets clear rules on how sublets and assignments must be handled, balancing the tenant’s right to move with the landlord’s right to know who is living in their property.
Step-by-Step Process in Prince Edward Island
Whether you rent a downtown condo in Charlottetown or a suburban townhouse in Stratford, the subletting rules remain the same. The process involves finding a suitable candidate and securing your landlord’s official approval.
Step 1: Understand the Difference Between Subletting and Assigning
First, decide which option fits your situation. Subletting means you are renting the unit to someone else for a temporary period, but you plan to return before the lease ends. You remain legally responsible. Assigning means you are permanently transferring the remainder of your lease to a new tenant, and you will not return.
Step 2: Find a Suitable Replacement Tenant
It is your responsibility to find a prospective tenant. You should screen them carefully, as your landlord has the right to refuse a candidate if they have a poor credit history or bad references. Make sure the new tenant understands the current terms of your lease.
Step 3: Submit a Formal Written Request to the Landlord
Once you find a suitable person, you must formally ask your landlord for written consent. Provide the landlord with the prospective tenant’s details. Under PEI law, a landlord cannot arbitrarily or unreasonably withhold consent. If they do not have a valid reason, they must approve the request.
Step 4: Draft and Sign the Sublet or Assignment Agreement
After receiving written approval, you and the new tenant must sign a formal agreement. If it is an assignment, the landlord will usually have the new tenant sign a new Standard Form of Tenancy Agreement. Do not hand over the keys until all paperwork is signed.
Step 5: Handle Dispute Resolution if Consent is Withheld
If your landlord unreasonably refuses your sublet request, you can file an application with the Director of Residential Tenancy at the IRAC Rental Office. You can ask for an order allowing the sublet or an order terminating your lease early.
How Much Does it Cost in PEI?
A common issue tenants face is landlords trying to charge excessive fees. The laws in Prince Edward Island are very clear on what a landlord can charge.
- Consent Fees: Landlords are strictly prohibited from charging a blanket fee to sublet or assign.
- Actual Expenses: The landlord can only charge for actual, reasonable expenses incurred during the process. This typically includes a credit check fee of around $20 to $50 CAD.
- Security Deposit: In an assignment, the new tenant usually pays the security deposit to the landlord, and the landlord returns your original deposit.
- Legal Assistance: If you face unreasonable roadblocks, consulting a local law firm or lawyer can cost roughly $150 to $250 CAD for an hour of advice.
| Expense Type | Estimated Cost (CAD) | Legality in PEI |
|---|---|---|
| Credit Check Fee | $20 – $50 | Legal (if actual cost) |
| Arbitrary Sublet Fee | $100+ | Illegal |
| Rent Increase for New Tenant | Varies | Illegal (during existing lease term) |
How Long Does the Process Take?
The timeline for a successful assignment or sublet usually spans 2 to 4 weeks. Once you submit a written request with the new tenant’s details, you must give the landlord a reasonable amount of time to conduct background checks. In PEI, it is generally accepted that a landlord should respond within 7 to 14 days.
If the landlord ignores your request or refuses unreasonably, filing a dispute with the IRAC Rental Office will extend the timeline. Hearing dates are subject to the Rental Office’s schedule, which could take an additional 3 to 6 weeks.
Frequently Asked Questions (FAQ)
Can my landlord say no to a sublet?
Yes, but only for a valid, objective reason. For instance, if the proposed tenant cannot prove their income or has a track record of severe property damage, the landlord can legally refuse.
If my subtenant works for IRCC or another federal agency on a short contract, is subletting ideal?
Yes. Subletting is highly popular for professionals on short-term postings with federal bodies or local hospitals, as it allows them flexible housing in PEI without committing to a full one-year lease.
Do I still pay rent if I sublet my apartment?
In a true sublet, you remain the primary tenant. The subtenant pays you, and you pay the landlord. If the subtenant stops paying, you are still legally responsible for the rent.
Can the landlord increase the rent for the new tenant?
No. When you assign or sublet your lease, the new tenant takes over the existing tenancy agreement under the exact same terms, including the current rent amount.
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