What is Subletting?
Many tenants often try to sublet their units when they are away for the summer. Some rules to follow:
- You cannot charge the subtenant more rent than you pay the landlord
- When you sublet, you remain ultimately responsible to the landlord for your obligations under the original lease, and your rights under the lease return to you when the period of subletting is over
- Therefore, if a subtenant does not pay their rent or causes damage to the property, the tenant will have to pay the landlord and then chase the subtenant for reimbursement
- You need your landlord’s consent to sublet; however, the landlord may not “arbitrarily or unreasonably” withhold his or her consent
- The landlord can charge you for “reasonable out-of-pocket expenses” incurred in giving his consent to the subletting. You are entitled to an itemized list of such expenses and if you feel they are unreasonable, you may apply to the Landlord and Tenant Board to have the amount examined
- It is advisable to obtain the landlord’s written consent ahead of time
- It is always advisable for you to sign a sublet agreement with the subtenant. In the event that you ever have to sue a subtenant for unpaid rent, a written agreement will provide proof of your arrangements
Assigning the Lease
When you assign your tenancy, you transfer all of your future rights and obligations under the original lease agreement to the new tenant. A tenant must have their landlord’s consent to assign a lease. A landlord may permit assignments but reject a particular assignee, as long as they are not acting arbitrarily or unreasonably. A tenant may have the right to terminate a lease (with proper notice) if a landlord refuses to allow assignment. If you assign a lease without the consent of the landlord, the landlord may negotiate a new tenancy agreement with the person now occupying the residence. It is best to obtain legal advice in these circumstances.