Student Subletting in Ontario: The Legal Rules and Three Real Risks
What every student must understand before becoming a ‘middle landlord’
Can a student in Ontario sublet their unit and act as a middle landlord?
Yes, but with hard conditions. Under Ontario’s Residential Tenancies Act, 2006, a sublet requires the landlord’s consent (which cannot be arbitrarily or unreasonably withheld), the sublet term must be shorter than the remaining term of your own lease, you cannot charge the subtenant more than you pay the landlord, and — critically — you remain fully responsible to the landlord for the entire period.
Source: Ontario Residential Tenancies Act, 2006; Tribunals Ontario (LTB) Form A2 instructions.
Every year around September I get the same call from parents of international students: ‘My child signed a 12-month lease but goes home for the summer — can they sublet to save money?’ The answer is yes, but Ontario has a full set of rules for being a ‘middle landlord,’ and one wrong move can cost you money or get you taken to the tribunal.
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First: Sublet vs Assignment
These are two distinct legal concepts. A sublet means you keep your lease and let someone occupy the unit temporarily (for a period shorter than your remaining term), then you return. An assignment means you transfer all your rights and obligations to a new person and leave for good. A student going home for the summer is almost always subletting.
Get written landlord consent
The sublet term must be shorter than your remaining lease
You cannot overcharge
💡 The single most important point: during the sublet, you (the original tenant) remain fully liable to the landlord. If the subtenant skips rent, damages the unit, or disappears, the landlord comes after your name. Screen your subtenant as carefully as a landlord screens a tenant.
The three real risks
First, non-payment — you must cover the landlord yourself and then chase the subtenant, which is slow. Second, damage and deposit disputes — Ontario only allows a last-month’s-rent deposit, not a ‘damage deposit,’ so you have little cushion. Third, no contract — too many students let someone move in after a quick text, with no written agreement and no evidence if things go wrong.
⚠️Never sublet ‘on a handshake’ with no written record. In most LTB sublet disputes, the original tenant loses precisely because they have no documentation.
Sign a written sublet agreement
Frequently Asked Questions
My landlord says ‘no subletting’ — can I still do it?
If your lease doesn’t lawfully prohibit it and the landlord is unreasonably refusing, you can apply to the LTB for a determination. If the lease contains a valid restriction, it’s more complex — get professional advice first.
Is subletting the same as having a roommate?
No. A roommate situation means you live there too and share costs. A sublet means you move out and let someone occupy temporarily. The legal responsibilities differ.
The subtenant damaged the furniture — can I keep their deposit?
Ontario doesn’t allow a ‘damage deposit’; a deposit can only be the last month’s rent. Put a damage/compensation clause in your written agreement and photograph the unit before and after.
I’m doing an assignment, not a sublet — same rules?
No. An assignment transfers the lease entirely; the new tenant deals directly with the landlord. It also needs landlord consent, but once you’ve assigned and left, you’re generally no longer responsible (depending on the arrangement).
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
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