What is the difference between a sublet and an assignment?

A sublet covers part of the remaining lease term with the head tenant returning at the end, while an assignment transfers the entire balance of the lease to a new tenant and the original tenant drops out. Sections 95 and 97 of the Ontario RTA, and equivalents in other provinces, treat them differently.

Do I need the landlord's consent to sublet in Canada?

Yes. Canadian provincial residential tenancy legislation requires the landlord's consent to a sublet. Consent may not be unreasonably withheld, and the landlord may charge only reasonable out-of-pocket expenses — never a premium — for granting it across all Canadian jurisdictions.

Can the landlord refuse any sublet?

The landlord may refuse on reasonable grounds, such as the proposed subtenant’s inability to pay rent or a proposed use that breaches the lease. An unreasonable refusal can be challenged at the Landlord and Tenant Board in Ontario, the Residential Tenancy Branch in British Columbia or the RTDRS in Alberta.

Can I charge the subtenant more rent than I pay?

No. Under section 134 of the Ontario RTA and equivalent provisions elsewhere, charging the subtenant more than the tenant pays the landlord (plus the value of extra items like furniture) is an illegal charge and can be recovered by the subtenant.

Am I still responsible for the unit after I sublet?

Yes. Sub-letting does not release the head tenant from the head lease under Canadian tenancy law. If the subtenant fails to pay rent or damages the unit, the landlord can still pursue the head tenant, who must then seek reimbursement from the subtenant under the sublease.

How long can the sublet last?

A sublet must end before the end of the head lease — even one day before is sufficient. If the proposed period runs to or beyond the end of the head lease the arrangement is treated as an assignment, which has different consent rules.

Does the subtenant have rights against the landlord?

The subtenant’s primary legal relationship is with the head tenant. However, section 97(2) of the Ontario RTA and similar provisions elsewhere give a subtenant certain protections — for example, against interference with quiet enjoyment — that can be enforced through the tribunal with the head tenant’s cooperation.

Does this template work for Quebec?

No. In Quebec subleases are governed by the Civil Code of Quebec, articles 1870 and following, and by the Tribunal administratif du logement. The Quebec regime uses a formal notice procedure and different landlord-consent rules, so this template should not be used there without review by a Quebec lawyer.

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Sublease Agreement Template

A sublease agreement allows an existing tenant to rent their unit to a subtenant for part of the remaining lease term. Our free Canadian template covers landlord consent, the split of responsibilities between original tenant and subtenant, and the specific rules that provincial Residential Tenancies Acts impose on sublets. Understanding Canadian sublease law is essential before proceeding, as the rules vary between Ontario, British Columbia and other Canadian provinces.

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SUBLEASE AGREEMENT

Province Of Quebec, Canada

SUBLESSOR (ORIGINAL TENANT)

Olivia K. Martin

123 Queen Street, Apt 5, Montreal, QC H3B 1A7 · +1 (514) 555-0101 · olivia.martin@email.ca

SUBLESSEE (NEW TENANT)

Daniel J. Kim

456 Rue Sherbrooke, Montreal, QC H3A 1B2 · +1 (514) 555-0202 · daniel.kim@email.ca

123 Queen Street, Apt 5, Montreal, QC H3B 1A7

Landlord: Regal Properties Inc. · Consent: Written consent obtained

PREMISES

The Sublessor agrees to sublease to the Sublessee, and the Sublessee agrees to sublease from the Sublessor, the residential premises located at 123 Queen Street, Apt 5, Montreal, QC H3B 1A7, Province of Quebec, Canada (the "Premises"). This sublease is made pursuant to the original lease (the "Head Lease") between the Sublessor as tenant and Regal Properties Inc. as landlord.

TERM OF SUBLEASE

The sublease term shall commence on June 1, 2026 and expire on August 31, 2026. The sublease shall not extend beyond the term of the Head Lease (which expires on November 30, 2026). Upon expiry of the sublease term, the Sublessee shall vacate the Premises and return possession to the Sublessor in the same condition as received, subject to normal wear and tear. Note: Under the Residential Tenancies Act, 2006 (ON) s. 97 and equivalent provincial legislation, a sublet cannot exceed the Head Lease term.

RENT

The Sublessee shall pay to the Sublessor a monthly rent of 1,800.00 CAD, payable on the first day of each calendar month during the sublease term. Rent shall be paid by e-transfer or such other method as the parties agree in writing. The Sublessor remains solely responsible for paying the full rent to the Landlord under the Head Lease.

SECURITY DEPOSIT

Upon execution of this Agreement, the Sublessee shall pay a security deposit of 900.00 CAD to the Sublessor. This deposit shall be returned to the Sublessee within 15 days of the end of the sublease term, less any lawful deductions for damage to the Premises beyond normal wear and tear. Any deductions shall be itemized in writing. The deposit shall be handled in accordance with applicable provincial residential tenancy legislation to the extent it applies to sublease arrangements.

LANDLORD CONSENT

Written consent from the Landlord, Regal Properties Inc., has been obtained for this sublease. The Sublessor shall provide the Sublessee with a copy of the landlord's written consent. Most Canadian provinces require landlord consent for subletting, and a landlord may not unreasonably withhold or delay consent: see Residential Tenancies Act, 2006 (ON), s. 97; Residential Tenancy Act (BC), s. 34.

ORIGINAL LEASE

The Head Lease between the Sublessor and the Landlord remains in full force and effect during the sublease term. The Sublessee agrees to comply with all terms and conditions of the Head Lease, a copy of which has been provided to the Sublessee. Any breach of the Head Lease by the Sublessee shall constitute a breach of this Agreement. The Sublessor remains fully liable to the Landlord for all obligations under the Head Lease, including payment of rent, regardless of any default by the Sublessee.

INCLUSIONS

The following items and services are included in the sublease rent: Furnished, heat and water included, internet included. The Sublessee shall maintain all included items in good condition and return them in the same state as received, subject to normal wear and tear.

CONDITION OF PREMISES

The Sublessee acknowledges having inspected the Premises and accepts them in their current condition. The Sublessee shall maintain the Premises in a clean and orderly condition and shall not make any alterations, additions, or improvements without the prior written consent of both the Sublessor and the Landlord. Upon vacating, the Sublessee shall return the Premises to the Sublessor in the same condition as received, subject to normal wear and tear.

SUBLESSOR'S LIABILITY

The Sublessor remains the original tenant under the Head Lease and is not released from any obligations thereunder by virtue of this sublease. The Sublessor shall indemnify and hold harmless the Sublessee against any claim arising from the Sublessor's failure to comply with the Head Lease, including any claim by the Landlord resulting from the Sublessor's own conduct. Nothing in this Agreement creates a direct tenancy relationship between the Sublessee and the Landlord.

10.

GOVERNING LAW

This Agreement shall be governed by the laws of the Province of Quebec and the applicable federal laws of Canada. Any dispute arising under this Agreement shall, where applicable, be resolved in accordance with the provincial Residential Tenancy Act and through the applicable tenancy dispute resolution body. The parties irrevocably submit to the jurisdiction of the Province of Quebec.

11.

GENERAL PROVISIONS

Entire Agreement: This Agreement constitutes the entire sublease agreement between the Sublessor and Sublessee regarding the Premises. Amendments: No amendment is valid unless in writing and signed by both parties. Severability: If any provision is found unenforceable, the remaining provisions remain in effect. Notices: All notices shall be in writing and delivered to the addresses set out above.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.

SUBLESSOR (ORIGINAL TENANT)

Olivia K. Martin

Date: ____________________

SUBLESSEE (NEW TENANT)

Daniel J. Kim

Date: ____________________

LANDLORD CONSENT (if required)

I, the undersigned Landlord, hereby consent to the above sublease arrangement pursuant to the Head Lease dated as of the sublease commencement date.

Landlord Signature: __________________________ Printed Name: Regal Properties Inc. Date: __________________________

What Is a Sublease Agreement?

A sublease agreement is a contract between an existing tenant (the "head tenant" or "sublessor") and a new occupant (the "subtenant" or "sublessee") under which the subtenant takes over the rental unit for some or all of the remaining lease term. The head tenant retains their obligations to the landlord and effectively becomes the subtenant’s landlord for the sublet period.

Subleasing is distinct from an assignment. In a sublet the head tenant remains responsible to the landlord and takes the unit back at the end of the sublet period; in an assignment the head tenant transfers the entire balance of the lease to a new tenant and typically drops out of the relationship. The distinction is drawn clearly in sections 95 and 97 of the Residential Tenancies Act, 2006, S.O. 2006, c. 17, and similar provisions appear in the Residential Tenancy Act, S.B.C. 2002, c. 78 and the Residential Tenancies Act, R.S.A. 2000, c. R-17.1.

Across Canadian provinces the landlord’s consent is generally required for a sublet, but that consent may not be unreasonably withheld. A landlord may charge the reasonable out-of-pocket expenses of consenting (such as a credit check) but may not charge a premium for granting consent. If the landlord refuses unreasonably, the head tenant may be entitled to end the tenancy or obtain an order overriding the refusal.

What's Covered in This Template

Our Canadian sublease template captures every clause a landlord, head tenant and subtenant expect to see.

Parties and Premises

Full legal names of head tenant and subtenant and the address of the rental unit being sublet.

Head Lease Reference

Identification of the underlying lease with the landlord, its term and any rules that flow through to the sublet.

Sublease Term

Clear start and end dates for the sublease, which must end at least one day before the head lease ends.

Rent and Payment

Monthly rent payable by the subtenant, due date and method of payment.

Deposits

Any last-month rent deposit, security deposit (where permitted by the province) and conditions for its return.

Utilities and Services

Which utilities and services are included in the sublease rent and which the subtenant pays directly.

Landlord Consent

Evidence of the landlord’s written consent to the sublet, as required by the applicable provincial RTA.

House Rules and Head-Lease Compliance

The subtenant’s obligation to comply with every term of the head lease and building rules.

Ongoing Liability of Head Tenant

Confirmation that the head tenant remains responsible to the landlord throughout the sublet period.

Return and Condition at End

The condition in which the subtenant must return the unit and arrangements for inspection at move-out.

How to Create a Sublease

Follow these steps to produce a valid provincial sublease agreement.

1
Check the Head Lease
Read the head lease for any sublet clause and confirm how much of the term remains — the sublet must end before the head lease.
2
Request Landlord Consent
Send the landlord a written request identifying the proposed subtenant, with any information reasonably needed to assess suitability.
3
Agree Commercial Terms
Set the sublease rent (not more than the head-lease rent plus reasonable expenses), the term, and the deposit arrangements.
4
Draft and Sign the Sublease
Use the template to capture parties, term, rent, head-lease compliance and responsibilities, and sign with the subtenant.
5
Document Hand-Over
Complete a written move-in inspection with the subtenant, retain the landlord’s consent on file and provide copies to all parties.

Legal Considerations

Subleasing in Canada is strictly regulated by provincial residential tenancy legislation. Getting the process and paperwork right is essential to protect both head tenant and subtenant.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified lawyer in your province for advice specific to your situation.

Reviewed for Canadian law

Ontario: Sublet vs Assignment Under the RTA

Sections 95 and 97 of the Residential Tenancies Act, 2006, S.O. 2006, c. 17 distinguish between assignment (transfer of the balance of the lease, s. 95) and sublet (a defined period shorter than the remaining term with the tenant returning at the end, s. 97). Both require the landlord’s consent, which cannot be unreasonably withheld. Section 148 defines subletting for the purposes of the Act. A purported "sublet" that runs to or past the end of the lease is treated as an assignment.

Landlord Consent and Reasonable Expenses

The landlord may charge only the reasonable out-of-pocket expenses incurred in consenting to a sublet, such as a credit check, and is expressly prohibited from charging a premium. In Ontario this is set out in section 95(7) of the RTA. British Columbia’s Residential Tenancy Act, S.B.C. 2002, c. 78, s. 34 imposes a similar rule. If the landlord refuses consent unreasonably the tenant may apply to the tribunal for an order authorising the sublet or permitting early termination.

Ongoing Liability of the Head Tenant

A sublet does not release the head tenant from the head lease. The head tenant remains liable to the landlord for rent and for any damage caused by the subtenant throughout the sublet period, under section 97(4) of the Ontario RTA and equivalent provisions in other Canadian provinces. The head tenant's best protection is a clearly drafted Canadian sublease agreement and a security deposit or last-month rent deposit from the subtenant where permitted.

Rent Limits and Prohibition on Profit

The head tenant may not charge the subtenant rent in excess of the amount payable by the head tenant to the landlord (plus the cost of additional items such as furnishings or services provided) — section 134 of the Ontario RTA treats any greater charge as an illegal charge recoverable by the subtenant. British Columbia imposes similar restrictions under sections 27 and 28 of its RTA. These rules prevent the head tenant from making a profit on a sublet.

Frequently Asked Questions

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