East York Property Management residential properties

Sublet Contract Ontario: The 2025 Guide for Tenants

Subletting can be a win-win when it’s done right. This tenant-focused guide explains how a sublet contract in Ontario should work—from RTA rules and LTB processes to screening, deposits, insurance, and building policies—so landlords stay protected and tenants stay compliant. Real case studies, recent policy context (multiplex and rooming-house changes), and copy-and-paste clauses included.

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Why this matters now (for tenants and landlords)

Mobility is the norm: co-ops, internships, travel, caregiving—there are countless reasons a tenant might need a short-term handoff. At the same time, Ontario’s rental landscape is changing fast. Toronto has expanded multiplex permissions—Council adopted Official Plan Amendment 818 and passed Zoning By-law 654-2025 to allow five- and six-unit “houseplexes” in Toronto & East York and Ward 23 (Scarborough North)—see the City’s Multiplex Housing overview and the formal public notice for OPA 818 and By-law 654-2025 (with by-law text here: 654-2025 PDF). Industry coverage also flagged trade-offs in implementation, for example Storeys on Council’s sixplex decision and DC waivers for sixplexes.

Meanwhile, city-wide licensing for Multi-Tenant (Rooming) Houses has been in effect since March 31, 2024; details are on the City’s official Multi-Tenant Houses framework page and the operator guidance page for owners & operators.

For landlords, good sublets protect rent roll and unit condition. For tenants, a compliant sublet contract ontario prevents LTB disputes and surprise liabilities. AVS Hospitality steers both sides toward the “clean middle”: properly screened subtenants, clear paperwork, and transparent expectations—no drama, predictable outcomes.


The law in one page (so you don’t learn it the hard way)

In Ontario, “assignment” and “subletting” are different under the Residential Tenancies Act, 2006 (RTA), ss. 95–97:

  • Assignment: the tenant transfers the tenancy to a new tenant and does not plan to return; the original tenant is released after a proper assignment.

  • Sublet: the tenant gives someone else the right to occupy for a defined period, then returns; the original tenant remains responsible during the sublet. See LTB Interpretation Guideline 21 and the province’s Standard Lease Guide for plain-language reinforcement.

Key rules you should actually remember:

Translation: a sublet agreement Ontario is legal, but it needs landlord consent, a specific end date, and crystal-clear terms. Tenants remain financially responsible; landlords should treat sublet screening like a mini tenant-placement.


Sublet vs. Assignment: which one should you choose?

Choose Sublet if you plan to come back (e.g., a 4-month contract in Ottawa).
Choose Assignment if you’re leaving for good (e.g., relocating to Calgary).

  • Sublet = three-party triangle (landlord ↔ tenant ↔ subtenant) where the tenant remains liable.

  • Assignment = the new tenant steps into the lease; the original tenant exits.

You’ll find the distinction echoed in the Ontario Standard Lease Guide and community legal explainers such as CCHR’s occupancy rules guide.


The perfect “Sublet Contract Ontario” — essential clauses (copy-and-paste ready)

Purpose & Parties
This Sublet Agreement Ontario (the “Agreement”) is between [Original Tenant’s Full Legal Name] (“Sublessor”) and [Subtenant’s Full Legal Name] (“Sublessee”). The Agreement concerns the residential rental unit at [Full Address] (“Premises”). The Sublessor is the lawful tenant under a [Monthly / Fixed-Term] lease with [Landlord’s Legal Name] (“Landlord”).

Term (Fixed) & Re-Entry
Start: [YYYY-MM-DD]. End: [YYYY-MM-DD]. The Sublessor will return to occupy the Premises on the End Date.
Note: Sublets must end on a specific date—see the LSHC fact sheet.

Consent
This Agreement is conditional on written consent from the Landlord. Consent will not be unreasonably withheld; see RTA s.97(2).

Rent & Payments
Monthly rent: $[amount], due on the [day] of each month, payable to [Sublessor / Landlord, per Landlord instruction]. The Sublessee agrees to honor all rent and utility obligations set out in both this Agreement and the head lease.

Security Deposit / Key Deposit
Ontario does not allow a “damage deposit.” A key/fob deposit is permitted if it’s refundable and equals the actual key/fob cost; see the Standard Lease Guide on fees/deposits.

Use & Conduct
The Sublessee will follow all terms of the head lease and any building rules supplied by the Landlord or property manager (noise, waste, smoking, pets). Failure to comply is a material breach.

Repairs & Maintenance
Report issues promptly through the designated maintenance channel (e.g., AVS Hospitality Tenant Portal) and allow access for repairs/inspections upon proper RTA notice.

Insurance
The Sublessee must maintain tenant insurance (liability + contents) with a minimum liability limit of $1,000,000, naming [Landlord/Property Manager] as an additional interested party for notice purposes, if required.

Indemnity
The Sublessee indemnifies the Sublessor and Landlord for losses arising from the Sublessee’s negligence, breach of lease, or misconduct (including guest actions).

Early Termination
The parties may mutually agree to end the sublet early in writing. Otherwise, the Agreement ends on the End Date. (Assignment or further subletting requires fresh consent.)

Condition Report
Attach move-in/out condition photos and a checklist signed by both parties within 48 hours of possession. Thorough documentation reduces disputes and LTB friction.

Attachments

Signatures
Sublessor: ____________________ Date: _______
Sublessee: ____________________ Date: _______
Landlord Consent (required): ____________________ Date: _______

Note to Landlords & Tenants: The province’s Standard Lease Guide has a section explaining assignment and subletting (permissions & consent).


The process (do this, in order)

1) Read your lease
Confirm it doesn’t prohibit sublets and note any stated process. Then cross-check with the Standard Lease Guide’s assignment/subletting section.

2) Ask for consent—properly
Email the Landlord/Manager with: proposed subtenant’s full name, employment letter, pay stubs, credit report, landlord reference, and dates. Remind them that consent can’t be unreasonably withheld (RTA s.97(2); see Guideline 21).

3) Screen like a pro
Think like AVS: verify ID, employment, income (a common rule of thumb is ~3× rent), credit, previous landlord reference, and (if building policy requires) a police background check. This mirrors professional management practices and protects everyone.

4) Use a real sublet agreement (the template above)
Include a specific end date and attach the head lease—see the LSHC fact sheet.

5) Insurance & keys
Obtain proof of tenant insurance and control keys/fobs with a refundable key deposit only (no damage deposits); see Standard Lease Guide—fees/deposits.

6) Onboarding
Complete a move-in condition report, share building rules, and onboard the subtenant to the AVS Hospitality maintenance portal if the property is AVS-managed—this keeps repairs timely and documented.

7) Stay responsible
During the sublet, you (the original tenant) remain responsible to the landlord. Keep rent paid and behavior compliant; LSHC’s sublet/assignment page makes this explicit.


Building-type realities in 2025: multiplexes & multi-tenant houses

Your sublet must align with municipal licensing and zoning—especially in Toronto.

AVS coordinates with landlords on both fronts—ensuring sublets don’t inadvertently breach building-type rules, fire separations, egress, or licensing conditions.


Case Study #1 — “Summer Internship Sublet” (tenant success, landlord happy)

Profile: 1-bed in a small East York triplex. Tenant gets a 4-month summer internship in Montreal.
Action: Tenant proposes a sublet, sends AVS a bundle: ID, credit, income, employer letter, prior landlord reference.
AVS process: We verify, obtain landlord consent in writing, collect tenant insurance, onboard to the portal, and run a photo-backed condition report.
Outcome: On-time rent for four months, zero service escalations, clean hand-back. The tenant returns and resumes occupancy.
Why it worked: Clear end date, strong screening, responsive maintenance via AVS workflows.


Case Study #2 — “Group House, One Room Sublet” (licensing matters)

Profile: A licensed multi-tenant house in Toronto with five rooms. One occupant needs to travel for 90 days and wants to sublet her room.
Issue: The landlord must keep the property compliant under the city’s licensing framework (effective March 31, 2024).
AVS approach: Confirm the property is licensed under the City’s rules, verify the subtenant, obtain written consent from the landlord, and align the sublet agreement with house rules (kitchen use, quiet hours, guests).
Outcome: Smooth 90-day sublet; no complaints; license obligations maintained.
Reference: City materials for operators are here (framework and owners/operators); community overview at CCHR.


Case Study #3 — “Sublet Denied?” (consent and reasonableness)

Profile: Tenant proposes a sublet agreement ontario for three months; the proposed subtenant has steady income and solid references. Landlord declines without reasons.
Law: RTA s.97(2) says consent to sublet must not be arbitrarily or unreasonably withheld—see the statute here and interpretation context in Guideline 21. Tenants or landlords may apply to the LTB using Form A2 (instructions) to resolve consent disputes.
AVS playbook: We reopen the file, present a clean summary (income, credit, references), address risk items (insurance, building rules, quiet-hours policy), and frequently obtain consent after clarifications.


Practical FAQs (for real life)

Q: Is there a government “sublet agreement form ontario pdf”?
A: There isn’t a single mandated provincial template. Use a robust written agreement (like the clause set above) tied to the Ontario Standard Lease rules—see the Standard Lease Guide and the official Standard Lease form.

Q: Can the landlord charge a “consent fee”?
A: They shouldn’t profit, but they can generally recover reasonable out-of-pocket costs (e.g., credit checks), as explained in the LSHC subletting podcast.

Q: Who’s liable if the subtenant causes damage?
A: The original tenant remains liable during a sublet. See the LSHC fact sheet.

Q: Can I sublet just one bedroom?
A: Yes, but ensure the building’s zoning/licensing allows it (especially in multi-tenant houses). Toronto’s city-wide licensing regime is in force—see City framework.

Q: Is a roommate the same as a subtenant?
A: Not necessarily. Roommates might share rent informally; a subtenant takes occupation from you for a defined period while you retain obligations. For nuance, see CCHR’s occupancy rules and the LTB’s Guideline 21 on occupants/roommates.

Q: What if a subtenant overstays or stops paying?
A: The LTB provides Form A2 (instructions) for issues related to assigning or subletting (including disputes over consent), and parties can seek orders clarifying responsibilities or remedies.


The AVS way: why our landlords (and their tenants) like sublets done right

  • Clear front-door process: We outline steps, consent needs, and timelines on day one—no surprises.

  • Pro screening: Credit, income, employment, landlord refs, and (if building policy requires) police checks.

  • Insurance & onboarding: Proof of tenant insurance, portal access, building rules, and a documented move-in condition.

  • Maintenance & communications: Tenants and subtenants use the AVS portal; owners get transparent updates and clean monthly statements.

  • Compliance guardrails: We track RTA rules, LTB processes, Toronto licensing, and multiplex implications so a sublet doesn’t create a regulatory mess.

  • Explore how we operate: AVS Hospitality (Home) and AVS Property Management Services. (Add your internal URLs here so these become live links.)


Copy-ready email to request landlord consent (tenants can paste this)

Subject: Sublet Request for [Address] — [Proposed Dates]

Hi [Landlord/Property Manager],

I’m writing to request consent to sublet my unit at [address] from [start date] to [end date]. I will return to the unit after the sublet period.

Proposed subtenant:
• Full name: [Name]
• Employer: [Company], [Role] — attached employment letter & 2 pay stubs
• Income: $[amount]/[month]
• Credit: [Score/Report attached]
• Prior Landlord Reference: [Contact attached]
• ID: [Government ID photo attached]
• Insurance: Will provide proof before move-in

I’ve attached a sublet agreement draft with a fixed end date and acknowledgment that I remain responsible during the term.

I understand consent is required under the Residential Tenancies Act, s.97(2) and that consent should not be unreasonably withheld (see LTB Guideline 21). Please let me know if you need any additional information.

Thank you,
[Your Name]
[Phone]


Red flags (landlords and tenants should hit pause if…)

  • No fixed end date on the sublet term

  • No landlord consent in writing

  • No screening (ID, income, references, credit)

  • No insurance proof

  • Building rules ignored (e.g., smoking, pets, quiet hours)

  • Subletting in a multi-tenant house that isn’t licensed or lacks required safety measures in Toronto’s 2024-onward regime (see the City’s Multi-Tenant Houses framework)

When AVS manages the building, these red flags get resolved before keys change hands—protecting both the rent roll and the tenant’s future relationship with the landlord.


Final checklist (screen-and-sign flow you can print)

  1. Read the head lease + Standard Lease Guide (assignment/subletting)

  2. Prepare a Sublet Agreement Ontario (use the clauses above)

  3. Gather the screening package (ID, income, credit, landlord ref, employment letter)

  4. Email landlord consent request (use the template)

  5. Obtain insurance confirmation

  6. Complete move-in condition photos + checklist; exchange keys with key deposit only

  7. Onboard to maintenance portal (if AVS-managed) and share house/building rules

  8. Calendar the end date—check-out photos and return of key deposit


Conclusion: A good sublet is boring—in the best possible way

When tenants understand the sublet contract ontario rules and landlords get a transparent, documented process, the outcome is predictable: rent stays current, units stay in top condition, and everyone avoids the LTB. In a city adopting more multiplex permissions and running a city-wide rooming-house licensing regime, clean sublets are a simple way to keep housing flexible without sacrificing standards. If your property is AVS-managed, you already know the drill—our workflows, screening, and portals make sublets as uneventful as paying the hydro bill.

Ready to make your sublet bulletproof? Start with your AVS Property Management page or learn more about AVS Hospitality.

Get in Touch

📞 Call: 647-294-5111
📧 Email: contact@avshospitality.ca
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▶️ YouTube: AVS Hospitality Channel
👉 Website: AVS Hospitality

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