I rented a room in my home where I share the bathroom with my tenant. The tenant gave notice to terminate her lease, and requested permission to sublet, but I refused. Was I within my rights to deny because my unit is exempt from the Act?

You are correct. If the tenant is required to share the kitchen and/or bathroom facilities with the owner then the tenancy is exempt from the Residential Tenancies Act. It means that there isn’t really a law that would apply to the tenancy, and it was at your discretion whether to allow the sublet or not.

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