Subletting a Rental Unit
Transcript
Introduction
Welcome to Landlord’s Self-Help Centre’s module on subletting a rental unit. The information offered in this presentation is intended as general information, it is not legal advice. If you need more information, please contact a legal service provider.
Residential Tenancies Act
In Ontario, the Residential Tenancies Act is the provincial law that governs most residential rental agreements. It defines the rights and responsibilities of both landlords and tenants and outlines appropriate reasons for giving a notice of termination. Section 97 of the Act sets out the rules relating to the subletting of a rental unit.
Subletting and Assignment
The terms subletting and assignment are often confusing terms for both landlords and tenants. It is important for landlords to understand the difference between these two terms. An assignment happens when a tenant permanently leaves the rental unit, and transfers the responsibility for that unit to another person with the landlord’s consent.
Subletting happens when a tenant temporarily leaves the rental unit, and with the consent of the landlord, allows another person to stay in the unit while they are away. This new person would leave when the tenant returns.
Can any tenant sublet their rental unit?
Any tenant can request to sublet their rental unit. This provision applies to all types of tenancies, except for superintendent units.
Common Misconceptions
There are many situations that create common misconceptions. It is not considered a sublet when the tenants allow someone to move in with them as a roommate while they are still living in the unit. In cases where there are multiple tenants on one lease and one of them wants to leave, the outgoing tenant cannot partially sublet their portion of the lease. The landlord should continue dealing with the tenant and never take rent payments directly from a subtenant.
Subletting a Rental Unit
Subletting happens when a tenant temporarily leaves the rental unit, and with the consent of the landlord, allows another person to stay in the unit while they are away. This new person would leave when the tenant returns. The tenant still remains responsible for the unit, and the landlord should not collect rent from the subtenant.
What are the rules of subletting?
Section 97 of the Residential Tenancies Act sets out the following rules related to subletting a rental unit. When a unit is sublet, the original tenant continues to be responsible for all the terms and conditions of the tenancy, this includes paying the rent. The tenant must get the landlord’s consent before subletting and the landlord should not unreasonably withhold permission.
The landlord is able to charge the tenant for reasonable out of pocket expenses incurred in giving consent for the subtenant.
Rules of Subletting Continued
To further clarify:
- The tenant is entitled to the benefits of the tenancy and are liable to the landlord for any breaches of the tenancy agreement.
- The subtenant is entitled to the benefits of their subtenancy and are liable to the tenant for any breaches of the subtenancy agreement.
- The subtenant can occupy the rental unit for a term ending on a specific date before the end of the tenant’s term after which the tenant has the right to resume occupancy.
- Once a subtenancy has ended, the subtenant has no right to continue occupying the rental unit.
In cases where there are disturbances or damages caused by a subtenant, the landlord will have to serve notice to the tenant.
Important Factors to Consider
After a landlord consents to a sublet, they should make sure the tenant and subtenant enter into a written subtenancy agreement. The landlord should not enter into a new tenancy agreement with the subtenant as long as the original tenancy agreement is still in effect.
Who is responsible for any damages or disturbances?
Any damages or disturbances continue to be the responsibility of the tenant. In cases where a termination notice is served, this notice should be served to the tenant.
Tenant’s Application to the LTB
If the tenant feels that the landlord arbitrarily or unreasonably withheld consent for a sublet, the tenant can file an application to the Landlord and Tenant Board.
Determination by the Board
A hearing will be held by the Board to determine if the landlord was unreasonable. The Board has the power to order one or more of the following:
- Authorization of the sublet
- Authorization of a different sublet proposed by the tenant
- Termination of the tenancy
- An abatement of the tenant’s or former tenant’s rent
Unauthorized Occupancy: What happens if the tenant sublets the rental unit without consent?
In situations where the tenant sublets the rental unit without the landlord’s consent, the landlord can file an application with the Landlord and Tenant Board based on unauthorized occupancy to end the tenancy and evict the subtenant, or the landlord can negotiate a new rental agreement with the subtenant.
A2 Application about a Sublet
The A2 application deals with unauthorized occupants and overholding subtenants, and it must be filed with the Board no later than 60 days after the landlord makes the discovery.
Negotiate a New Rental Agreement
If the landlord instead decides to negotiate a new rental agreement with the unauthorized sublet, this agreement must be entered into no later than 60 days after the landlord discovers the subtenant is still in the unit.
However, this new tenancy agreement can only be entered into with the subtenant if they continue to occupy the rental unit after their subtenancy agreement ends and if the original tenant abandoned the rental unit.
What happens after the 60 days?
After 60 days pass, if the landlord has not filed the A2 application or entered into a new tenancy agreement with the subtenant, that subtenant becomes a tenant under the same terms and conditions of the old rental agreement.
Conclusion
Thank you for watching this module about subletting a rental unit. The information offered in this presentation is intended as general information, it is not legal advice. If you have a specific issue or situation, please contact a legal service provider.