Sublet or Assign? Two Very Different Things Every Ontario Tenant Should Get Right
One means you’re coming back and stay on the hook. The other means you’re fully out. Pick wrong and you could pay for someone else’s unpaid rent.
What is the difference between subletting and assigning a lease in Ontario?
An assignment (RTA s.95) permanently transfers the entire lease to a new tenant — you are fully out and no longer responsible for rent or damage afterward. A sublet (RTA s.97) lets someone occupy the unit for a set period after which you return, and during that time you remain responsible to the landlord. Both require the landlord’s consent, and the landlord cannot arbitrarily or unreasonably refuse. Choosing the wrong one carries very different consequences.
Source: Ontario’s Residential Tenancies Act (RTA), sections 95 and 97; Landlord and Tenant Board (LTB)
Whenever a tenant says I’m moving out and letting a friend take the place, there are actually two completely different legal paths behind it. Are you gone for good, or just leaving temporarily? The answer decides whether you are assigning or subletting — and who pays if the new occupant skips rent or damages the unit. This article draws the line in plain terms.
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Assignment: you are fully out
Sublet: you’re leaving temporarily and coming back
⚠️Quietly letting someone move in is not a lawful sublet or assignment. Letting another person occupy the unit without the landlord’s consent can breach your lease and create problems for you. Apply first and get consent.
Both need consent — but it can’t be unreasonably refused
Liability: this is the cost of choosing wrong
Practical advice
Three practical reminders. First, decide whether you’re coming back before choosing a path. Second, get every consent in writing — a verbal yes is hard to prove later. Third, when subletting, sign a clear agreement with the subtenant covering the period, rent, deposit, and responsibility for damage; don’t rely on goodwill. When the stakes are high or the situation is complex, get professional guidance.
Frequently Asked Questions
If my subtenant stops paying rent, who does the landlord pursue?
You. Under a sublet, you as the original tenant remain responsible to the landlord throughout the sublet period, so the landlord can pursue you for the subtenant’s unpaid rent or damage. That is the biggest difference between a sublet and an assignment.
After I assign my lease, am I still responsible for the new tenant’s problems?
No. Once a proper assignment takes effect, your legal relationship with the landlord ends, the new tenant deals with the landlord directly, and later rent or damage is not your concern.
Can the landlord refuse my sublet or assignment?
Both require consent, but for a suitable candidate the landlord cannot arbitrarily or unreasonably refuse. Apply in writing and keep records; if the landlord unreasonably refuses, the tenant has avenues for relief.
I’m only leaving for a few months — which one applies?
If you are sure you’ll return to continue your own tenancy, that’s a sublet. If you don’t plan to return and want fully out, that’s an assignment. Decide your intentions first, then pick the type — don’t run a situation where you’re leaving for good as a sublet that keeps you liable.
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